Top Ten Mistakes Small Businesses Make When Choosing Their Web Hosting Provider
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Web hosting is an essential part of conducting any business on the Internet. Regardless of the kind of company or whether it is a small, medium or large enterprise, the business must always have a solid and reliable web hosting company supporting it in order to maintain an effective online presence. This holds true for information based online businesses, directory resources, or web sites that sell goods or other services.
Below is a list of some of the more common mistakes that small business owners can make when considering web hosting services for their online companies.
1. Assessment of business needs. When searching for a web host to support an Internet business, it is imperative to first: a) know exactly what the service or product is; and b) identify what the audience or consumer will be for what is being offered. Once that is determined, you can develop a sensible business goal from which to operate. Using what you know about your product, service and goal – you can better consider what you will need in order to proceed effectively. For example, a company that is offering information only will have very different needs from a business that will sell physical products and need to accept payments from its web site.
Small businesses need to be prepared for the volume of business it may receive, which begins with identifying the exact product or service, target audience, and business goal.
2. Online business identity. Choosing a domain name is like selecting a business name. When starting a new online small business, the domain name is chosen when the web hosting service is purchased. One of the things that many new small business owners fail to realize is how important the domain name will be to online success.
Similar to using the Yellow Pages, the average consumer uses a major search engine with “key words” to describe services and products when shopping online. For example, if someone is looking for ‘flowers,’ it is relatively certain that the word ‘flowers’ will be used as a search term. It would make sense, then, that an online vendor selling flowers would want that word in their domain name if possible.
Because of the key word search system that online consumers use, a short, memorable domain name can be far more effective for an online presence vs. a “vanity” type of title. In the online world, the domain name will determine in large part how new customers will find your products or services.
Since the domain name is the online identity that customers will recognize for the small business, it is also important that as many potential consumers as possible will be able to find it. Taking time to really choose the best domain name possible will lessen the chance of the new web site getting lost in cyberspace.
The domain “business” name can be much more significant than a traditional company name – in terms of how easily a website will be found by potential consumers online. A well established traditional business usually maintains the same name that it is already known by, for its identity online. However, it may also be prudent to have a domain presence that can be found through a popular search engine as well – to increase web traffic and customers.
While we are on the subject of domains, another issue to watch out for is that a good shared server plan will offer at least 20 domains, and even better ones will offer up to 999.
3. Technical Requirements for the Website. Any new small business owner interested in an online presence either needs to understand what technical requirements will be necessary to operate the kind of website required, or hire someone who can handle those aspects for them.
Having a clear idea of what will be installed will make it possible to know what scripts are necessary, so that the host servers are compatible with them. Otherwise, there is a risk of wasting a lot of time trying to accommodate various technical requirements that may surface.
For example, all bogging, forum software, and other web applications require a database in order to function. Since most shared server packages only offer between 1 and 5 databases, there is a limitation on the ability to expand with new sites. This could also hinder the ability to experiment with new ideas – which is important to most small business owners.
With regard to e-commerce operations, web hosting is such an integral part of the business that its success ultimately depends upon it. Just as a brick and mortar store needs a physical place to operate, a cyberspace company needs a secure place from which to conduct its business on the Internet.
It is also recommended to keep an ongoing list of what resources the web site will need, which can be added to as time goes on. Keeping a list of needed requirements will also make it easier when it is time for an upgrade, as the business grows.
Purchasing web hosting is very much like buying a new car. There are many flashy options to choose from. Salesman want to sell as many of the features as they can, but when it comes to web hosting, it is up to the webmaster to determine what it is that is actually needed.
4. Developer Support. From a webmaster’s perspective, hosting is really a facilitative service. As a result, problems arise whenever there are restrictions imposed by the account limitations of a server package. Developer support is one of the ultimate tests for any web host.
Regardless of the hosting package chosen, below are just some examples of developer tools to be aware of that may be required by a webmaster or web designer:
* PHP
* MySQL
* Ruby on Rails
* Python
* CGI
* .htaccess
* cron jobs
5. Service Level Agreement. Web hosting service agreements are not all alike. Ensure that you thoroughly read and understand the service agreement and what will be provided in that regard. Never agree to anything that you do not understand. It is also a good idea to go over the service agreement with someone who is familiar with web hosting, to ensure that everything about the service level is fully understood. This may also be accomplished by making inquiries in web hosting forums. Always read the fine print, and pay particular attention to what kinds of guarantees are offered.
6. Web Hosting Costs. It is always tempting to do business with the least expensive option. Choosing a web host because of various perks and free service offers may sound like a good deal on its surface. However, the old cliché “You get what you pay for” applies to web hosting, just as it does to so many other things.
There are many reasonable, low budget hosting solutions available as well as extremely low cost hosting. If the price makes you wonder how they are able to stay in business, there is usually a reason. Think of it as a kind of alarm. Extremely low cost usually means an extremely slow web site, or even denial of service due to maxed out bandwidth. Trust first instincts and steer clear of offers that just seem too good to be true.
Not understanding the fee structure is also a common mistake that can easily be avoided. Discounts offered by web hosting companies are great; however, you also need to know what the charges will be for each service, after any discount expires. It is also a good idea to ask if there is a further discount for a number of months that are prepaid in advance.
Other issues regarding payment include knowing what payment methods are available, how many months in advance the payment is required (i.e., what the length of the contract is), and what setup fees may be necessary.
7. Web Hosting Service Research. The Internet enables very easy and straightforward research on many businesses, and that includes web hosting companies. The ability to really shop around and read reviews should be taken advantage of to the fullest extent possible.
One way to find a service geared toward your particular business is to visit other similar web sites. It could also be very helpful to find out which web hosting companies are hosting those websites. One way to find out this information is through the whois directory. If possible, email some of the owners of websites that seem similar to the one you will have, and find out how happy they are with the services, and what the costs are, among other issues.
Once you’ve narrowed down a few web hosts to consider, take a good look at the potential web host’s web site. It should be professional and easy to navigate. Technical support from the web site should be immediately available in forms such as email and chat, in addition to telephone. Every web host being considered should have taken the time to craft an informational website.
Never take testimonials at face value. Ensure that you investigate the web host’s reputation, independent of simple customer statements. Web hosting forums, such Web Hosting Talk, can provide insight to see what customers are saying about various web hosting providers. They are also a great resource to find out all about web hosting, from those who have been using it for many years. This information can prove to be invaluable.
Finally, take a look at an independent resource such as Netcraft to find out how many new vs. departing customers the web hosting company has. There are quite a few resources that can provide customer retention, service and downtime data that can be very useful in helping to determine whether or not to do business with a web hosting company. You may find that often times, the numbers don’t lie.
8. Redundancy for Outages. It is a very good idea to ensure that there is a robust redundancy strategy in place to handle any possible network outages. Essentially, full redundancy provides a ”fail over solution” which deploys if there is any network, power grid or hardware interruption that could take websites offline for any reason. A redundancy program can include things like multiple carriers for Internet connection, a multiple power generation option, or even multiple servers housed in different locations, along with a secure, isolated DNS solution. Those particular precautions can insure that any failure to one portion of the network will not affect the uptime of a clients’ website.
Some webmasters have lost countless hours of productive time simply because an outage made it impossible to work on anything, since all the web sites were down. Having access to websites is particularly important, for example, if your site generates income. When a web host has multiple server redundancy, you can be assured that if any hardware malfunctions occur, data may be easily transmitted along another line, without a service interruption.
9. Web Hosting Contact Information. These days, many customer service issues can be efficiently handled to satisfaction with email, forum and live support. However, when it comes to web hosting, it is critical to keep abreast of complete contact information, so that in the event that a website goes down, a webmaster has immediate access to technical support. Therefore, it is recommended to include an additional company telephone number to the 24/7 telephone support number. It is also a good idea to have a record of the web host’s physical address – so that if there is any issue with any of the phone numbers, they can be double-checked against an address, through directory assistance. While all of this caution may seem unnecessary, keep in mind that for the entire time that a website is down, visitors and potential sales are being lost. It is better to have an excess of information, rather than lack in any way.
10. Website Backups. The backup system offered by many web hosting companies may appear sufficient, but small business owners are smart to have their own backup in place to guard against losing critical data. For example, if a web site goes down indefinitely from a hacking incident or other destructive method, those who did not have an independent backup of their own may find that it is necessary to start from scratch. This could be a complete disaster, especially if the site has matured significantly. Always regularly make your own backups offsite and on a local computer or separate network.
No matter what web hosting plan that you decide to purchase, you will end up with the best result if you make decisions based upon the details that will affect your particular business the most. This can only be accomplished by being aware of what all of the technical aspects needed to run your online business are, or hiring someone who can sufficiently accomplish that for you. Always keep in mind that the web host chosen will be an integral part of the process in order for any business to be successful online.
The most important thing to remember when selecting a web hosting provider is to really do the homework. Know what the product is, determine what the business goals are, and then research what technical needs are required to meet those objectives. Those actions are critical for any small business success online. If you do all of that, there is a much better chance that unfortunate situations will not occur and adversely affect your business. The research that is conducted ahead of time will greatly enhance the chance of online business success.
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November 4th, 2009 at 3:04 pm
Excellent article. One should always figure in the costs and the service level agreement along with the features needed before deciding on a provider. But costs should not be the only factor…make sure that you pick one of the biggest webhost around or their reseller.
Harsh Jaiswal
(a.k.a. domain-registrations.in)