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Why Create a Business Plan Before Buying a Dedicated Server for Resale?

  • September 19, 2016
  • By Grace
Why Create a Business Plan Before Buying a Dedicated Server for Resale?

Web hosting companies are plentiful, but it’s an industry with the potential for huge rewards. The only problem with starting a web hosting company is that many people lack the cash and technical resources to make it work. On the other hand, there are plenty of people who are starting reseller hosting services without having that knowledge. Some fail and others succeed. One of the biggest differences between successes and failures is that some companies sit down and write out their business plan first.

Web hosting is one of those business ventures that require a lot of work upfront, but they can be lucrative in the long run without much work required to keep it sustained. Online entrepreneurs are always looking for the next big idea for passive income, and this is one of those. Before you grab your first dedicated server, tackle the business plan.


Identify the Challenges

It doesn’t matter what you’re selling or whether it’s in an online setting, you still have to write a business plan to identify where the challenges are. This is the time to decide if you’re going to start small with your own dedicated server in your home or bigger with a few servers in an office. You’ll need to dig deep and find where the holes are in the plan. It’s a great source of passive income in the long run, but you’ll need to understand if you need employees or contractors to start the business.

Plan for Problems

When you have a plan in place for your business, you can identify clear goals and channels that will help you get out of any issues that may come up in the course of the startup, marketing phase or during the continued growth of the company. With a contingency plan, you’ll be floundering during any problems. Systems will help make sure your company stays on track.

Define the Purpose and Mission

There are times when a business can spin off its tracks. Usually, it’s when business owners and their employees forget the purpose and mission of the business. When it’s identified in writing, it’s easier to refer yourself and employees back to the basics of the mission statement.


List of Equipment

You’ll need to know exactly what you’ll need for equipment. Whether you have the cash for the bare minimum or more extensive servers, you’ll need web servers, a strong broadband connection, high-powered computers, stabilizers and a power generator. Along with the equipment, you’ll need a plan for payments.

Payment System

You’ll need to have a billing system in place before you can start offering services. As a company, you can bill through your website or have a third-party billing service take care of the subscription each month. Each subscription will need to be linked to a credit card or bank account, so you’ll also have to be secure.

Research the Market

There are millions of business owners who don’t have a website, which means they don’t have hosting. You’ll have to research the market to figure out how you can capitalize on the market and bring these people to your dedicated server. You should know your target audience to ensure you’re offering exactly what they want and need.


Know Your Audience and Advertising

Once you understand your target market, you’ll need to understand how to find them. Those business owners who don’t have a website for their business will need to hear from you, but you have to know where they are. You could be shouting the best message in the world, but if you’re yelling in the wrong direction, it won’t be heard.

Assess the Competition

It can help to assess your competition to see what they are doing. You can emulate their success, or you can analyze the market to see if you can offer something they are not. It’s best to figure out where your company can fill in a hole and be that for your customers. If your competitors are not offering extra help for customers who are starting their first website, you can give them extra service for a lower price. You can differentiate yourself once you’ve evaluated others in the industry.

Support Desk

You’re going to need a help desk for your customers in case they have technical issues. When you’re first starting out, you might be able to handle small support tickets, but as the company grows, you’re going to need help. The business plan should have a future growth chart where it includes new employees and other changes that will have to be made.

To start a reseller hosting company, you’ll need to be effective at marketing to get customers and be able to troubleshoot problems to keep them in the beginning stages. After some time, you can hire employees and help desk technicians. All the plans you have for your business should be written out in a business plan that you can refer to over the course of your business.


By Grace, September 19, 2016
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