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5 Barriers to starting your own hosting company (and how to overcome them)

5 Barriers to starting your own hosting company (and how to overcome them)
May 21
11:20 2014

Starting your own Web Hosting company can be overwhelming.

There’s quite a bit that you need to get started AND do a good job. The barrier to entry can be quite expensive depending on what type of services you wish to offer. In a nutshell, it can be quite complex…

The key to running any business, hosting or otherwise is simplicity.

Simplicity is easy to grasp. Simplicity is easy to manage. Simplicity is well… easier.

Simplicity is more profitable.

Just compare simple businesses against complex ones. You will quickly see a simple business has higher margins, clearer visions, and is easier to sell.

U.S .Post Office (complex) vs. FEDEX (simple)
Apple (simple) vs. Microsoft (complex)

However, ACHIEVING simplicity is not EASY. In fact, one could argue that Web Hosting isn’t simple or easy. The environment is highly technical, ever changing, and complex to manage… but it doesn’t have to be.

Below, I’ve identified what I feel are the 5 biggest barriers that would prevent you from properly setting up and managing your own web hosting company. And it doesn’t matter if you have the resources of a Fortune 500 company or are starting in your parents basement. Making the following simple is not an EASY undertaking…

5 Barriers to Starting Your Own Hosting Company

1. Not Properly Picking a Niche (this can sink you)
2. Infrastructure Expense (see above – you need to know who you are)
3. Billing Software (a big weakness and customer killer if not done right)
4. Automation (Setups and Customer Control to reduce overhead expenses)
5. ….

All of these bring a level of complexity.

When things are complex, they are hard to maintain. Complexity returns lower profit margins. Complexity is harder to sell.

Bet you noticed #5 was blank in the above list… that’s because it’s the BIGGEST issue with starting your own hosting company. Get this wrong… game over. Get it right… you can become a market leader and innovator.

Tomorrow, I will reveal #5 from the above list and also reveal the perfection SOLUTION.

Richard Guzzo
FindMyHost.com

About Author

FindMyHost Editor

FindMyHost Editor

The 'Web Hosting Blog' at FindMyHost.com was established to provide the web hosting industry with the very latest in news, technology, interviews, event information and more. About FindMyHost.com: Launched in January 2001 to protect Web Host Consumers and Web Developers from making the wrong choice when choosing a Web host. FindMyHost.com showcases a selection of web hosting companies who have undergone our Approved Host program testing and provides reviews from customers.

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