Starting your own Web Hosting Business – Part 2

By Ashish Monga

Read Part 1

In Part 1 of this series, we looked at the different levels of operation to start a web hosting business, and the business aspects related to it. Now lets assume you have a full-fledged business plan, a marketing strategy and have legally registered the business, so its time to look at the technical bits. In reality, both the business aspects and technical aspects have to go hand in hand to actually set-up the business, although for the sake of understanding these have been divided here. For e.g. when you are making your business plan (business aspect), you would have probably already evaluated the different hosting companies providing re-seller hosting or the cost of equipment being offered by different companies (technical bit).

Here are a few technical aspects related to the business of web hosting, which you will need to consider and carefully evaluate, to successfully launch your business.

1. Equipment/infrastructure : If you are planning to sell reseller packages, then this shouldn’t be a big concern. All you will need is a computer to set-up accounts and a good Internet connection, preferably one that is switched on 24/7, as it is crucial to provide good customer support in order to retain customers. If you intend to provide complete hosting solutions, then this can be a complicated task. You will need to buy necessary hardware and software for setting up the server. You should also have your backup options ready in case of an emergency or problem.
   
2. Technical skills : Technical skills are necessary in order to provide customer support. Many of the queries raised by customers are beyond control panels and hence it makes it vital for the business owner to know how to solve those issues. Especially if you are providing complete solutions it is important to have detailed technical knowledge (preferably a computer science degree) or hire a system administrator. In order to maintain and configure the server, these skills are imperative.
   
3. Customer service : Good customer service is the key to any business, but in the web hosting business they are crucial. As there is a lot of technical work involved, customers are likely to run into different problems from time to time, and as it’s a competitive business, they expect prompt response. You should consider things like, ticket system and live chat to make it easier and more comfortable for the customers to communicate with you.
   
4. Accepting Credit Cards : It is important to give your customer as many payment options as possible. You either have the option of opening your own merchant account or you can use third party merchant accounts.

It is important to realise that the web hosting business is not one of those, get rich quick business. It is one that requires hard work, constant vigilance, and most importantly patience to build a customer base. If you have a limited budget, and intend to do most of the work yourself, it is best to work with a hosting provider for some time, to evaluate the problems and risks involved, and assess the requirements before starting your own hosting business.

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