Looking to start a web server hosting company? here is a complete guide to starting a web server hosting business with no money or experience .
Ok, so we have provided you with a detailed example of a web server hosting business plan template. We also took it a step further by analyzing and writing a sample web server hosting marketing plan backed by actionable guerrilla marketing ideas for web server hosting companies. In this article, we will cover all the requirements for starting a web server hosting business. So put on your entrepreneur hat and let’s move on.
Why start a web server hosting company?
One of the good things in the information age is that there are several business opportunities out there, including server hosting or web hosting as it is commonly called. Nordic hosting companies are companies that provide space on a server owned or rented to customers, and they also provide internet connectivity, usually in a data center.
If you are interested in IT and have some start-up capital, as well as looking to start a business in the IT industry, your best bet is to start a server and web hosting company. Indeed, there is a large global market for web hosting companies.
All you need to do to attract customers and maximize profits, as a newcomer to the industry, is to make sure your business is well covered, keeping downtime and your costs to a minimum. affordable. In order to achieve all of the above, you need to be prepared to work hard and smart, hire dedicated and knowledgeable employees, and most importantly, have a reliable server.
The server / web hosting industry is a lucrative business as individuals, businesses and government require server hosting services. However, to start this type of business, you will need some technical skills to secure your server.
Due to the technical nature of this business and the need to understand what you will get from a business perspective, it would be wise to consult a business consultant in the region where you intend to start a business so that the business consultant can walk your business. -concepts and gives you advice on whether or not to continue the business. If your business concept is good, the business consultant will offer you tips and suggestions for next steps that will be helpful in running your business.
Therefore, if you have completed the necessary feasibility studies and market research, you might want to get into this business.
Setting Up a Hosting Company on a Web Server Complete Guide
- Industry overview
The server hosting industry is known to stay, and of course, it is one of the industries that plays a key role not only in business, but in almost every aspect of the modern world. This is because there is hardly any serious business or organization or even person that does not have an internet presence and does not have their own website.
The server hosting industry provides web hosting services to third party service providers. These services most often take the form of web hosting, where industry operators provide dedicated server space and Internet connections to individuals and organizations to make their sites available on the Internet. Players in this sector also provide application specific services such as email application hosting and game hosting etc.
Research by IBISWorld shows that the demand for the server hosting industry has increased dramatically over the past five years. due to the high demand from companies wishing to expand their business and online presence. This trend is expected to continue to grow. Most employees, managers, and business owners in the server hosting industry have worked in the complementary information technology industry.
The server hosting services industry is indeed a very large industry which is quite active in all parts of the world. According to statistics, there are approximately 18,573 registered and licensed hosting companies in the United States of America alone, employing approximately 139,069 people, and the industry generates approximately $ 20 billion annually. Going forward, the industry is expected to grow at a rate of 7.1% per year between 2012 and 2021. The companies that hold the lion’s share of the market available in this industry are Endurance Int’l, GoDaddy.com and web. com.
The fact that hosting companies can be easily found in the United States of America and in cyberspace by no means makes the industry too saturated. The fact that there are people and organizations that will need the services of hosting companies from time to time to host their websites makes the business even greener.
Some of the factors that motivate entrepreneurs to start their own hosting company can be certain that the business is successful and profitable and can be started anywhere in the world.
Like any other IT department, server hosting services are constantly evolving. Technology is changing and improving rapidly and therefore the limits of hosting technology are widening to meet ever-changing demand. This gives consumers the opportunity not only to research the cheapest hosting offer or the most flexible hosting model, but also to think about what kind of business models they want to support and if they have. need specific features in their packages.
Creation of a web server hosting company, market study and feasibility studies
- Demography and psychography
The demographic and psychographic makeup of those requiring the services of server service companies includes individuals, businesses, government agencies, investors, and business owners including entrepreneurs who own websites / servers. …
So if you want to define the demographics of your server hosting company, you need to encompass everything. It should include companies, business owners, research centers, institutions, banks, military institutions, blue chip companies, businessmen and businesswomen, start-up entrepreneurs, start-ups and telecommunications companies inside and outside the city you work in. the ability to pay for your services.
List of niche ideas in the web server hosting industry that you can specialize in
Most server hosting companies tend to operate as a whole. a service that includes all the activities that a standard server company is supposed to offer. So it seems that there are no niches in the sector. But on the other hand, some server hosting companies may decide to tackle some key areas such as
- dedicated website hosting
- cloud hosting
- Shared hosting
- hosting for specific applications (WordPress hosting)
- Provide site construction, security and advanced functionality
Level of competition in the server hosting industry
Regardless of which industry you decide to pitch your tent in, you will always be competing with others who are part of the same company. The realm of business and server hosting is no exception. The level of competition in the server hosting industry depends a lot on your area of expertise and the size and organization of your server hosting company.
Obviously, the biggest players like Amazon and others are turning to server hosting in the service industry; it is now becoming very important for small server hosting companies to have strong partnerships. The relationship between affiliates and resellers is emerging as the backbone of how these businesses profit, as a number of small to mid-size server hosting companies become the binder for specific service packages required by small business users and online businesses.
The truth is, regardless of the level of competition in the industry, if you’ve done your due diligence and correctly labeled and marketed your products or services, you will always be successful in the industry. Just make sure you have what it takes to deliver the right solution. server and people hosting issues, and you know how to reach your target market.
List of famous brands in the web server hosting industry
In all sectors, there are always brands that perform better or are better perceived by customers and the general public than others. Some of these brands have long been known in the industry and are known for it, while others are best known for the way they run their business and the results they have achieved over the years.
These are some of the leading server hosting companies in the United States of America and around the world;
- Endurance International
- Come on daddy
- Blue host
- Inmotion Hosting
- Web hosting
- Fat cow
- Peer 1 hosting
- windows Azure
- Excellent internet
When it comes to starting a business like a hosting company, you just need to do a feasibility study and market research right before you start a business. It is aimed at professionals who have acquired the experience and knowledge necessary to find solutions to server hosting problems.
Starting this type of business necessarily means that you will obtain the required professional degrees and certifications, as well as a good working relationship with stakeholders. in industry. If you are already a major player in the IT services industry before deciding to start your own server hosting company, this might not be a problem.
Depending on the scale you want to start with, it can cost you several thousand dollars, and at the same time, you might need a lot less than if you decided to start a small-scale business, offering limited services.
You are expected to engage the services of experts to help you conduct a comprehensive economic and value analysis of your business at the location where you plan to start your business. If you do your economic and cost analysis right before you start your business, you may not have to linger for long before you break even.
Create a server hosting company from scratch or buy a franchise
Unfortunately, you can hardly find a server hosting company franchise to buy, which means if you want to own a server hosting company, you have to be ready to start from scratch. Indeed, the business is still quite green and there are many opportunities available to budding entrepreneurs interested in the industry.
The truth is, you have to pay to set up your server hosting company with a scratch. Starting from scratch, you’ll be able to conduct in-depth market and feasibility research before deciding on a niche to develop.
Note that most of the large, successful server hosting companies started from scratch and were able to build a strong business brand. Business success takes dedication, hard work, and determination, and of course you can start your own server hosting company to become a successful brand with clients the length and scale of the United States. United of America and other countries around the world.
Threats and potential challenges you will face when starting a server hosting business
If you decide to start your own server company today, one of the biggest issues you are likely to face is having well established hosting servers in your market. The only way to avoid this problem is to create your own market.
Some other threats you are likely to face as a hosting company operating in the United States are adverse government policies, the emergence of a competitor in your area of operation, and a global economic downturn that could affect your server. hosting company. There is virtually nothing you can do about these threats except to hope that everything will work for you.
Setting up a web server company Legal issues
- The best legal entity to use for this type of business
You have the option of choosing a full partnership or a limited liability company for your hosting company. Usually, a full partnership should have been the ideal business structure for a small server hosting company, especially if you’re just starting out with moderate start-up capital.
But if you are intending to grow your business and have customers from all over the United States of America and other countries around the world, going for a full partnership is not an option for you. A limited liability company, LLC will replace it for you.
LLC training protects you from personal liability. If something is wrong with the business, only the money you invest in the limited liability company is at risk. Partnerships don’t, limited liability companies are simpler and more flexible to manage, and you don’t need a board of directors, shareholders’ meetings or other formalities. Management.
Here are some of the factors to consider before choosing a legal entity for your server hosting company; limitation of personal liability, ease of transfer, acceptance of new owners, investor expectations and of course taxes.
If you take the time to critically research the different legal entities that will be used for your hosting company, you will accept that a limited liability company; LLC is the most appropriate. You can start this type of business as a Limited Liability Company (LLC) and turn it into a “C” or “S” corporation in the future, especially when you plan to go public.
Catchy Business Name Ideas Suitable For Server Hosting Company
When it comes to choosing a name for a business, you are expected to be creative, as the name you choose for your business will go a long way in creating an idea of what it is. business. It is generally the norm for people to follow the trend of the industry in which they intend to operate by naming their business.
If you are thinking of starting your own server hosting company, here are some catchy names you can choose from;
- Xtrip server hosting company
- Gconnect server hosting company
- com Hosting company
- Diamond Base hosting company
- Upper Cloud Hosting Company
- Octopus Link server hosting company
- Hydra Cloud Server Hosting Company
- QWERTY server hosting company
In the United States of America and most countries around the world, you cannot run a business without some of the basic insurance policies required by the industry you want to work in. Hence, it is imperative to budget for insurance policies and perhaps consult an insurance broker to help you choose the most suitable insurance policies for your hosting company.
Here are some of the basic insurance policies to consider when buying if you want to start your own server hosting company in the United States of America;
- General insurance
- Risk insurance
- Financial reinsurance
- Health insurance
- Liability insurance
- Workers compensation
- Accident insurance
- Group insurance for business owners
- Payment protection insurance
Protection of intellectual property / registered trademark
If you are considering starting your own server hosting company, you usually need to apply for IP / Trademark protection. This is because the nature of the business allows you to challenge organizations and individuals in court for illegal use of your business’ intellectual property.
Additionally, if you want to protect your company logo and other documents or software that are unique to you, or even jingles and multimedia production concepts, you can apply for intellectual property protection. If you want to register your trademark, you must initiate the process by filing an application with the USPTO.
Do i need professional certification to start a hosting company?
Besides the results you produce regarding server hosting services for your clients, professional certification is one of the main reasons why some server hosting companies stand out. If you want to make an impact in the financial advisory services industry, you should strive to obtain all the necessary certifications in your area of specialization.
We strongly recommend that you obtain professional certifications; this will go a long way to show your commitment to the business. The certification validates your competence and shows that you are highly qualified, engaged in your career and up to date in the market.
Here are some of the certificates that you can use to achieve your goal if you want to run your own hosting company;
- IAAP Certified in Essential Accessibility Skills (CPACC)
- GIAC Certified Windows Security Administrator
- CloudU Certification Rackspace
- Professional Wireless OSWP Offensive Security
- Ace Web Specialist
- GPEN GIAC penetration tester
- Cisco Cyber Security Specialist Certification
- Current diploma related to ICT
Please note that you cannot successfully start a server hosting company in the United States and most countries around the world without necessarily acquiring professional certifications and commercial licenses, even if you have sufficient experience in services. IT security consulting.
List of legal documents you need to run a server business
The availability of the necessary documents before starting a business in the United States of America cannot be overstated, especially when it comes to the placement of servers. It is a fact that you cannot conduct business successfully in the United States without proper documentation. If you do this, it won’t be long before the long arm of the law reaches you.
Here are some basic legal documents that you must have in place if you want to legally operate your own hosting company in the United States of America;
- Registration certificate
- MySQL Server Support certified hosting
- SSL certificates
- Federal taxpayer ID
- State authorization
- Commercial license and certification
- Business plan
- Non-disclosure agreement
- Employment contract (letters with proposals)
- Operating Agreement for LLC
- Insurance policy
- Contractual consultation documents
- Apostille (for those intending to work outside the United States of America)
- Company charter
- Memorandum of Understanding (MoU)
Financing your cyber server hosting business
Besides the required certifications and practical experience, starting a hosting company service can be relatively expensive. Securing a standard office in a good business district, buying computers and Internet servers, equipping the office, and paying your employees are some of the things that will require a significant chunk of your start-up capital.
One of the first things to consider when it comes to financing a business is writing a good business plan. If you have a good, workable business plan document, you may not have to work on your own before convincing your bank. , investors and your friends to invest in your business or enter into partnerships with you.
Here are some of the options you can use when looking for start-up capital for your server hosting company;
- Collect money from personal savings and sell personal stocks and property
- Raise funds from investors and business partners
- Sale of shares to interested investors
- Apply for a loan from your bank
- Submit your business idea and apply for business grants and seed funding from donor organizations and angel investors
- Source of concessional loans from family and friends
Choose the right location for your web host on the web server
The server that hosts the business and most Internet companies does not necessarily need it. If you can physically see your customers, it can be located anywhere since most of your business transactions are done over the internet.
Just because you can run your hosting company from your home doesn’t mean that location has little impact on the success of a server hosting company.
It cannot be stressed enough that the location you choose to start your hosting company is the key to your business success; therefore, entrepreneurs are ready to rent or rent an object in a visible place; a place where the demographics are made up of people with the necessary purchasing power and lifestyle.
So, if you are looking for a location for your hosting company, make sure it is in the business / ICT center of your city, a location that is visible and easily accessible. Of course, you wouldn’t want to find this type of business on the outskirts of town. Your clients should be able to get behind the wheel and find their desks with little to no hassle.
Creation of a web server hosting company, technical and human resources
Several technologies or special equipment do not require this type of activity; You will need a computer server, custom cybersecurity software, and custom antivirus, among other unique products developed by your team of programmers and software developers. In addition, you will certainly need computers / laptops, internet, telephone, fax machine and office furniture (chairs, tables and shelves).
When it comes to choosing between leasing or leasing office space, the size of the hosting company you want to start and your overall business budget should influence your choice. If you have enough capital to run a standard server hosting company, you should consider renting. premises for your office.
When it comes to how many employees you need to start a business with, you will need to consider your finances before making a decision. On average, you will need a CEO / President (you can fill this position), IT professional, Legal secretary, Administrator and HR manager, Programmers and software developers, corporate developer / marketing and sales manager, accountant, department manager. Customer service / Official supervisor.
You will need a minimum of 5-10 key employees to effectively run a mid-size but standard hosting company. Please note that there will be times when you will need to be able to hire experts to help you deal with some well-known clients, especially those from large corporations. If you are just starting out, you may not have the financial capacity or the business structure to retain all the professionals who are expected to work with you.
Server hosting service delivery process
The job of a server hosting company is to provide space on a server owned or leased to customers, and to provide internet connectivity, usually in the data center for their customers, so they can make sure that they have provided the facilities and structure necessary to provide the above services.
Basically, when customers are renting your services or paying to host their server on your platform, they expect their server / website to experience minimal downtime as well as quickly and efficiently. Customers are expected to renew their payment typically after one year or after their subscription expires.
Setting up a hosting company on a web server marketing plan
- Marketing ideas and strategies
As a server hosting company, you need to prove that your server hosting platform is reliable and has minimal downtime before you hire businesses and individuals to host your website. on a web hosting platform. Therefore, if you are considering starting your own server hosting company, it will pay you first for a successful career in the ICT service industry.
People and organizations will only host their sites on your server hosting platform if they know they will receive uninterrupted service and minimal downtime or no downtime on your platform. .
So, when developing your marketing plans and strategies for your server hosting company, make sure you create a compelling personal and business profile. In addition to your qualifications and experience, it is important to be clear in practice what you have been able to accomplish in the meantime, regarding the serious hosting industry and the organizations that host their websites. on your platform, it will help you increase your chances in the market when finding clients. …
Please note that in most cases when looking for clients for companies and other institutions you will be asked to defend your proposal so you should be very good at presentations. Here are some of the platforms you can use to promote your server hosting company;
- Introduce your business by sending cover letters with your brochure to all corporate organizations, web designers, business owners, research centers, institutions, banks, military institutions, blue chip companies, businessmen and businesswomen, budding entrepreneurs. entrepreneurs, start-ups and telecommunications companies inside and outside the city in which you work and who have the capacity to pay for your services
- Promote your business in relevant ICT magazines, radio stations and TV channels (be available to host ICT related servers, talk shows and interactive sessions on TV and radio)
- List your business in local directories
- Participate in international exhibitions, seminars and trade fairs in the field of ICT
- Create different packages for different categories of customers to work within their budget.
- Use online resources to promote your business
- Join local chambers of commerce and industries around you to network and market your services and products. You will most likely receive recommendations from these networks.
- Hire direct marketing marketing managers and business developers
Strategies for developing your network. Server hosting company – brand recognition and corporate identity creation
If you are in business, and if you don’t have the intention of increasing your brand awareness and spreading your corporate identity, you must be prepared to accept what the company means to your business. One of the secrets of great companies is that they are willing to spend a fortune year after year to increase their brand awareness and continue to convey their corporate identity the way they want people to see it.
If your intention to start a server hosting company is to grow a business outside of the city you intend to operate in to become a national and international brand, you must be prepared to spend the money. to promote and promote your brand.
When promoting your brand and corporate identity, you should use both print and electronic media, as well as social (internet) media. In fact, using the internet and social media platforms to promote your brands is beneficial and it is quite effective and widespread.
Another strategy is to sponsor relevant community programs, TV and radio programs, and advertise your business in relevant ICT magazines and newspapers. Below are the platforms you can use to promote your brand, as well as to promote and market your hosting company;
- Advertise in ICT related magazines and newspapers, on radio and television.
- Encourage word of mouth use from your loyal customers
- Use internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote your business
- Make sure you place your banners and billboards in strategic positions throughout your city
- Distribute leaflets and flyers to targeted areas in and around your region
- Connect with corporate organizations, web designers, business owners, research centers, institutions, banks, military institutions, new technology companies, businessmen and entrepreneurs, startups, entrepreneurs, start-ups and telecommunications companies in and outside the city in which you work, who has the ability to pay for your services by calling them and informing them about your organization and the services and products you you propose
- Promote your business on your official website. and use strategies to help drive traffic to your site
- Mark all official vehicles and ensure that all our employees regularly wear your branded shirt or cap.