Setting Up Your Hosting Company

A lot of people see the internet as a veritable cash cow. Whether it's through internet marketing, PR, or becoming a hosting provider, there are several ways for anyone to set up a profitable home business online. That said, setting up a hosting company is more complicated than just deciding to do it, and doing it. There are a number of things that need to be taken into account. The two most important questions to ask yourself are 'How much do I know?' and 'What can I afford?'.
To start with, prospective business owners need to look at what they bring to the table in terms of both knowledge and capital. When it comes to owning a hosting company, knowledge doesn't just mean technical knowledge of things like server administration, either. A hosting company is like any other business, and will require someone with good business sense to handle things like money, advertising, and other aspects of commerce.
If you are knowledgeable and have enough capital to invest in your hosting company at the outset, you may wish to purchase your own server, and set it up yourself. This will require an understanding of how servers work, how to manage one on your own, and how to minimize downtime. Website owners can't be profitable if their visitors can't access their pages, and won't be willing to pay for a server that experiences a lot of technical problems or unnecessary downtime. Investment capital means more than just paying for the server, too. You will also need to account for things like software licensing fees, electricity, office space, and staffing.
The disadvantage of this is that you will have to provide your own technical support, will not have a parent company to fall back on if things go wrong, and will end up laying out a large amount of capital to start your business.
If you are somewhat knowledgeable and don't have a lot of capital, you may wish to look into paying for a hosting reseller account through a larger hosting company. Unlike paying for a regular hosting account, this allows you to use their hardware and other resources, while selling parcels of space on your virtual server to your clients. In this situation, you only need enough capital to pay for the resources you require.
The advantage of setting yourself up as a hosting reseller is that you do not need to know as much about managing a server, and will have the parent hosting company's technical support available to give you help. The disadvantage is that your service will only be as good as the hosting you resell- if you choose a company with poor service, you will be providing poor service to your clients, and will quickly lose business! The key to being a good hosting reseller is to thoroughly research the host you choose to do business with. A good host will allow your business to prosper, while a bad one will just make your life more complicated.
Both business approaches have their advantages and disadvantages, and the most important part is to choose whichever means of setting up your hosting company is best for you. Attempting to set up your own serve and business will end in disaster if you don't have the knowledge and money to keep your servers firing, and attempting to become a hosting reseller can end in disaster if you choose to go through a hosting company that offers shoddy service. Carefully consider what you have to offer your business before deciding which way to go, and your hosting company will be successful.