The web hosting market is everyday growing at an unprecedented rate, it is not really surprising because every day, new websites or blogs are being created, and these new websites needs to be hosted.

An entrepreneur who is willing to tap into the opportunity might asked, how do I start a web hosting company? Just like any other business an entrepreneur is willing to invest in, one needs to get an accurate overview, that is, being well informed so as to prevent backing off at the middle of the project.

Although, you might be too quick to think it takes no much effort to start a web hosting company, but the real truth is, it does require effort, but the efforts are not too far to be reached.

These basics does not only involve knowing what a web hosting company is, but it involves the various forms in which it could be practiced and presenting you the best alternative. It also includes what is required by an entrepreneur to start a web hosting company, an eventually, a step by step guide on how to start a web hosting company.

Getting answers to these questions demands your full concentration while reading on and I urge you pay rapt attention.

Web Hosting Company Overview

Web hosting is simply a form of business in which websites are being provided storage space and an easy access. A hosting business will rent or lease the needed amount of bandwidth and storage to a client for a stipulated agreed time.

It is so true that web hosting is lucrative, but it isn’t a get-rich quick scheme, it did require hard work. An entrepreneur would need to plan and devote reasonable quantity and quality amount of time to the business. The cost of operation differs from a business owner to another business owner because your charged price would certainly vary.

What Is Required to Start a Web Hosting Company?

·       Programming Knowledge

Frankly speaking, a very good knowledge of web design is very well needed. This is the pillar in which your business is tied with. A broader knowledge of web design, such as HTML, PHP and CSS are needed. So, a sufficient programming language cannot be skipped if you will want to start a web hosting company.

·       Sufficient Time

This points depends on how you view the web hosting business. Are you taking it as a full time job or a side hustle? If you wish to start a web hosting company as a side hustle, I doubt if you will be able to create enough time to manage the business unless you are going to employ more hands.

If you are taking it as a full time business, know web hosting as what it is- A business that needs commitment! You have to maintain and constantly be available 24/7 for customer support.

·       Motives

You really need to identify motives here. The reason for bringing up a business tells so much about how well we are going to excel.

Are you in for competition? Or just to make profit? Or maybe to stand out? If your motives are positively charged, you will no doubt be successful.

Various Forms of Operating a Web Hosting Company

Interestingly, a web hosting module of operation is not limited to just a single form. There are three good ways to start a web hosting company. The three forms of service come with their pros and cons leaving the entrepreneur to decide which one he is to go for, after a careful confederation.

·       Becoming A Re-seller

This is actually the best alternative for the less experienced. They are expected to meet hosting networks and become a hosting re-seller. One would have to pay small fee to a previously established server and eventually re-sell the service.

This option will fetch less income but at most, cheap and easy to use. It is best you research into the best and affordable server for your need.

·       Buying and Maintaining a Server

A lot different from being a re-seller. An interested business owner who wishes to start a web hosting company will decide to buy a server and maintain. This options requires a large amount of capital for a competitive market.

·       Using A Data Center

This very last option means using a dedicated sever as a data center. These companies will be the one to help you monitor your own server. This mode is not expensive. It is stress free, and will also avail you the opportunity to be competitive with other hosting companies.

Starting a Web Hosting Business

Having gone through what a web hosting company entails. Let us quickly check through step by step approach on how to start a web hosting company, irrespective of the form of service you are finally going to consider.

1. Pick The Most Preferred Business Form

Determine which one out of the three forms of web hosting will best fits your budget, time and programming knowledge.

2. Make Provisions for Legal Implications

This aspect in particular will require you create Terms of Service Statement, Licensing and usage policy that is acceptable by your company.

3. Make Provision for a Technical Support

It is important you provide 24/7 technical support which could be offered via email, telephone or chat boxes.

4. Marketing Your New Company

The moment you have gotten everything done accurately. Your next line of action is to advertise your products and services to potential clients. You can create a blog to get this done or demand for Google or Facebook for proper marketing

5. Retaining Customers

It is one thing to fetch customers, it is another thing to retain them, therefore your customer relation have a part to play in this regard. It is now important for you to maintain a good customer relation.


Here is a sample business plan for starting a website hosting reseller business.

We are in the information age and virtually every serious company or business agency has a website. Because of this, the IT industry has rapidly grown, providing a wide range services to entrepreneurs. One of such services include web hosting for website owners, giving them a space in the world wide web.

If you have an eye for good business and wish to thrive in the Web Hosting Industry, have it in mind that it is very competitive, so you must be ready to work hard and ensure your server is reliable.

You cannot do this business successfully without a proper business plan. It gives you direction and can be used to increase your chances of securing a loan if you need one. Here is a sample draft of a web hosting business plan from which you can write your own.


Diamond waves® Web Hosting Co.


  • Executive summary
  • Products and services
  • Vision statement
  • Mission statement
  • Business structure
  • Market analysis
  • Publicity
  • Cost of starting
  • Sources of capital
  • Conclusion

Executive summary

Diamond waves® Web Hosting Co. is a standard web hosting company that will be based in Atlanta, Georgia; where we have secured a world class office facility in a strategic location.

We are determined to offer the best web hosting services to organizations and individuals who need spaces on the world wide web. By providing internet hosting services to third party service providers, we will offer server space and connection to our highly esteemed customers.

We at Diamond waves® Web Hosting Co. are aware of the competitive nature of the web hosting industry and for us to be the best, we have taken time to monitor the modus operandi of the top players in the field and have taken note of all their lapses. We will focus on these weak points and make sure those who patronize us never go back to another company, hence making our name in the industry and crippling our competiors.

The workers that make up Diamond waves® Web Hosting Co. will be selected from the best set of IT experts in and around the city of Atlanta. We will also be sure to teach them the ethics of the profession and take them through several trainings which will groom them to meet up the standards of our company.

We will equip Diamond waves® Web Hosting Co. with the best tools available and always update our services to meet the trends in the web hosting industry.

Diamond waves® Web Hosting Co. is founded by Joey Simmons and his younger brother Teddy Simmons. They both have ample experience in the IT industry and business world, and will work together to move this company to greater heights.

Products and Services

Diamond waves® Web Hosting Co. will offer the following products and services;

  • Web hosting services
  • Products for website builder
  • Security features
  • Email features
  • Business features
  • Web site applications
  • Consultancy and advisory services related to web hosting.
  • Game hosting services

Vision Statement

To build a top web hosting company that provides services which are highly sought after by clients who are not only the United States, but all over the world.

Mission Statement

To offer professional and world class web hosting services that will aid corporate organizations and individuals that patrocnise us to reach the maximum number of people who use the internet.

Business Structure

Diamond waves® Web Hosting Co. has taken great measures to see that our business structure is very firm and will support the growth of our company. We will hire competent hands to our workforce and use the structure below;

  • Chief Executive Officer
  • General Manager
  • Human Resources Manager
  • Sales and Marketing executives
  • Account
  • IT experts (10)
  • Customer service personnel

Market Analysis

We at Diamond waves® Web Hosting Co. will target clinets from relationships we build with those who need our services such as blue chip companies, financial institutions, hotels, churches, schools, web designers and IT specialists, political parties, television stations, advertising agencies, entrepreneurs, and many more.


We will make maximum use of both print and electronic media to publicise Diamond waves® Web Hosting Co. We will also sponsor TV shows and organise seminars.

Cost of Starting

After an extensive research and feasibility studies, we have realized that it will cost the sum of $300,000 to start up Diamond waves® Web Hosting Co.

This money covers all the startup expenses and also includes the salary of workers for the first three months.

Source of Capital

The founders of the company, Joey Simmons and his younger brother Teddy Simmons will be the chief source of capital for the business, and should there be need for extra funds, Joey Simmons will get a loan from his bank.


Diamond waves® Web Hosting Co. is a company that will operate as a family business headquartered at 27th street in Dunwoody, Atlanta, Georgia. The founders will be open to partnership and investment as the business grows.