What is the biggest mistake that a hosting company should avoid?

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#1
I feel that large hosting companies back in recent years didn't care about any of their services, all they cared about was making money and how to make more money by selling their products thus their services can reduce the quality time by time. What about you? What is the biggest mistake that a hosting company should avoid to improve their services and increase potential customers?
 
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#2
Customer service is one of the most important aspects but I think capital management is absolutely key. Cash flow is critical to a business, doubly so for a new company starting out. A host should be able to offer good support, but that won't matter a whole lot if it doesn't have enough money to keep the lights on.
 

sh-admin

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#3
Well as per me .. A hosting company should avoid false promises and product promotions... many of the customer are behind cheap thing like cheap hosting , cheap VPS and even they get it but they always forgot to read the TOS and AUP of so called cheap provider and where Provider always oversell the services which then cause the performance issues with the services and the result is client cancellations , bad reviews of such organizations ....
 
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#4
Having a low budget VPS when going high with marketing as this will overload your VPS in short time and people will start to leave as there websites are not running fast or in worse senerio the hosting service starts giving some kind of errors.
 
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#5
I'm with Justin. Having a solid business plan goes a long way. Our industry is plagued by a lot of fly-by-night operations that don't plan well and operate under assumptions that the money will show up eventually while they burn through their capital simply due to poor planning.

There are a lot of inherent costs of doing business that are ignored by many out there. I've seen people renting $10,000 servers for $500/mo. When are they planning to get a ROI? That's 20+ months to get even IF all your operating costs are $0. No. No. No.

Plan ahead. Foresee costs. Be responsible to your customers.
 

EpicGlobalWeb

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#7
EpicGlobalWeb
I agree. Most tech venture capitalists today will as well. They want to know the expense projections more than your sales projections.

I'd add, though, that the #1 problem (as in any business) is the ability to get sales rather than cut expense.
 

Nixtree

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#6
In my opinion, Support is the most critical one and without a proper support team or company, you will not be able to satisfy the 24 / 7 customer needs and one man show will never work for a hosting company (unless you are providing unmanaged VPS / dedicated servers only )

You should always be loyal to your customers and always keep in mind as "Customer is King" and even a single unsatisfied customer can cause a heavy damage to company's online reputation. So loyalty and politeness should be there to your customers and try to make them happy :) To keep them happy, Always stick to your promises and TOS etc so that you can make your point as well.
 

StartVM

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#8
I don't think enough hosting companies focus on solving a problem. Too many companies are focused on sleek branding and trying to compete with the guy selling for $0.50 more per month. Forget the prices and branding for a moment, and think about how your business contributes to the hosting market. What are you offering to clients that hasn't been offered 100 times before? There is security in being a follower, success comes from being a leader.
 

HostXNow

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#9
Some of the biggest mistakes is choosing quantity over quality and expanding too fast.
 
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#10
Do not piss off your clients. That is probably the most important. 2nd would be accounting and managing your money. 3rd would be company culture and making sure everything is organized and your staff are happy and qualified. Good support is very important.
 
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