Hello Guys!!
We are a web hosting startup and we are operating from our home itself. I have been battling with my team on this topic from last one month.
Our Business is at initial stage and I know it will grow rapidly and with that we need to increase manpower also.
But now at initial stage is it necessary to have physical location for our web hosting business.
Please give your suggestions.
Well,
Having physical office is not indeed important. But if you are targeting local area then the chances are that customers may consider visiting the office to discuss about their requirement/issues.
At initial stage you don't need any office. If you are targeting international business. You can manage this from your home. I think you should spend that money on customer support, advertisement etc.
Investment is necessary for business and that investment should be done in proper way as per business growth.
I would like to explain this in proper way by using product life cycle theory. PLC has four stages.
1) Introduction stage.
2) Growth stage.
3) Maturity stage.
4) Decline stage.
So according to PLC, you are at introduction age. Therefore you will need less investment ,like for e.g. physical location you are asking is it necessary to have or not? . At introduction phase you can operate from home itself. Better focus for 2nd stage which is growth, very important stage. Plan your business according to PLC you will get answer of your every question.
I believe that having physical location shows professionalism, you can create your existence among customers. Even though you are doing online business, it creates your existence; but you will also experience face to face interaction with customers.
You are doing right and as your business starts growing than think of expansion.
I appreciate your feedbacks and advice. I think I should focus more on advertisement and when it comes on expansion part then I will invest on premise or building.
Quote from: Shilpa on August 24, 2016, 05:04:07 PM
I appreciate your feedbacks and advice. I think I should focus more on advertisement and when it comes on expansion part then I will invest on premise or building.
Can you give strong reason for having office?
Quote from: Bala on August 24, 2016, 05:30:07 PM
Quote from: Shilpa on August 24, 2016, 05:04:07 PM
I appreciate your feedbacks and advice. I think I should focus more on advertisement and when it comes on expansion part then I will invest on premise or building.
Can you give strong reason for having office?
Well, We don't just offer web hosting. We have network of web developers, they are doing different designs and projects. So main reason behind having location was to train and develop strong sales representative for increasing the sales.
I think web hosting company should have strong servers. If you have good infrastructure but your servers is facing downtime then it's of no use . Excellent server automatically brings good volume of sales to company. Try to focus on server's development.
The quality of web server may define your website performance. Because if servers are of good quality, you need not to worry about physical location.
I believe that every coin has two sides. Company having good infrastructure gives average service and vice versa. It totally depends on service quality you are rendering to customers.
Quote from: Shilpa on August 24, 2016, 03:07:10 PM
Hello Guys!!
We are a web hosting startup and we are operating from our home itself. I have been battling with my team on this topic from last one month.
Our Business is at initial stage and I know it will grow rapidly and with that we need to increase manpower also.
But now at initial stage is it necessary to have physical location for our web hosting business.
Please give your suggestions.
Server location does affect website speed. If servers are not compatible which takes time to download website speed, it may affect business.
Yes, it does matter. First of all, from the cost point view, the second is the bandwidth and website speed. If the distance is more then, the time to fetch the web pages will also increase.