Need accountant, and future business direction?
Discussion
first of all, thanks for the advice on here before regarding IT stuff. I tend to read the car topics rather than post, cars are my second hobby after music.
Basically the last 2 years have seen my music hobby take off in the form of a website. The site now receives around 24,000hits a day, and is at the stage of receiving at least 50 new forum members a day from all round the world. The site is well listed within all the search engines and the brand name now known amongs the target audience. My closes competitor in the US has just shut down due to the business model proving too expensive.
Basically the site is going through a number of changes
1. Brand name will be altered
2. Hosting switched to cheaper server in Asia
3. The end of the flash based pages, and a move to php script with sql database back-end.
The site's primary purpose is hosting downloads of live DJ sets broadcast on radio stations around the world. Mp3 downloads cost money in terms of server disc space, and bandwidth/data transfer. The site is clearing in excess of 130GB a month now. Fortunately on the new Asian server I have unlimited data transfer and pay a fixed monthly fee.
However, to fund this site I need to start generating some revenue. I have a good contact in Asia and have apportioned up the server using H-sphere to re-sell the unused disc space I have (about 40GB), and plan to use the music site to advertise webspace for sale very cheap. Users always need somewhere to host their mp3's.
My question to you people is:-
1. How best to make money from the traffic. I was thinking of offering users cheap webspace on the unused section of the server (though if v.popular I can just buy new servers and partition them up). Costs will be £2 for 100MB webspace, and whatever data transfer I want to charge to prevent the sites slowing my traffic on the main server. The line is 100MB/second dedicated to each server and sits on the main line in Asia.
2. I've had some FTP access requests but am concerned about the security of this. I would prefer to sell people the webspace. Then they are responsible with it and won't make it publically available.
3. I need an accountant based in West London/Central London who is cheap and can help me register co. name, VAT register and sort the accounts. What's the going rate? The only current employee is myself, but may well expand to 2 other people soon. Can I offset all the equipment I have purchase over the last 2 years against tax liabilities. Plus as a higher rate income tax payer I've simply invested my net pay in the business, is there any tax break/ability to reclaim tax for the money I invested in the business net. Or is it all gone now.
4. The biggest problem with selling the webspace is the "webspace for sale site" does not exactly entice customers. It simply uses the H-sphere program graphics as a reseller account (since I don't actually own the entire server). I can get Worldpay embedded in the webspace site via a friend, but it will cost £200 one off fee, are people more likely to use it than paypal since they don't have to sign up for anything?
Your thoughts/comments/ideas please. At this point in time I'm simply looking to cover costs, I can't see it making much money. Is it worth paying someone to design a decent web hosting site so it looks the part.
Basically the last 2 years have seen my music hobby take off in the form of a website. The site now receives around 24,000hits a day, and is at the stage of receiving at least 50 new forum members a day from all round the world. The site is well listed within all the search engines and the brand name now known amongs the target audience. My closes competitor in the US has just shut down due to the business model proving too expensive.
Basically the site is going through a number of changes
1. Brand name will be altered
2. Hosting switched to cheaper server in Asia
3. The end of the flash based pages, and a move to php script with sql database back-end.
The site's primary purpose is hosting downloads of live DJ sets broadcast on radio stations around the world. Mp3 downloads cost money in terms of server disc space, and bandwidth/data transfer. The site is clearing in excess of 130GB a month now. Fortunately on the new Asian server I have unlimited data transfer and pay a fixed monthly fee.
However, to fund this site I need to start generating some revenue. I have a good contact in Asia and have apportioned up the server using H-sphere to re-sell the unused disc space I have (about 40GB), and plan to use the music site to advertise webspace for sale very cheap. Users always need somewhere to host their mp3's.
My question to you people is:-
1. How best to make money from the traffic. I was thinking of offering users cheap webspace on the unused section of the server (though if v.popular I can just buy new servers and partition them up). Costs will be £2 for 100MB webspace, and whatever data transfer I want to charge to prevent the sites slowing my traffic on the main server. The line is 100MB/second dedicated to each server and sits on the main line in Asia.
2. I've had some FTP access requests but am concerned about the security of this. I would prefer to sell people the webspace. Then they are responsible with it and won't make it publically available.
3. I need an accountant based in West London/Central London who is cheap and can help me register co. name, VAT register and sort the accounts. What's the going rate? The only current employee is myself, but may well expand to 2 other people soon. Can I offset all the equipment I have purchase over the last 2 years against tax liabilities. Plus as a higher rate income tax payer I've simply invested my net pay in the business, is there any tax break/ability to reclaim tax for the money I invested in the business net. Or is it all gone now.
4. The biggest problem with selling the webspace is the "webspace for sale site" does not exactly entice customers. It simply uses the H-sphere program graphics as a reseller account (since I don't actually own the entire server). I can get Worldpay embedded in the webspace site via a friend, but it will cost £200 one off fee, are people more likely to use it than paypal since they don't have to sign up for anything?
Your thoughts/comments/ideas please. At this point in time I'm simply looking to cover costs, I can't see it making much money. Is it worth paying someone to design a decent web hosting site so it looks the part.
Forget selling webspace there are hundreds already in the market and unless you are selling very specialised space for niche markets you dont have a prayer of making anything more than a portion of your server costs back........
And the maintenance / support of the number of users you will need to generate is a nightmare - my company sells space but only to clients we design for etc - hance no support issues.
>> Edited by dontlift on Tuesday 4th February 09:58
And the maintenance / support of the number of users you will need to generate is a nightmare - my company sells space but only to clients we design for etc - hance no support issues.
>> Edited by dontlift on Tuesday 4th February 09:58
It's niche in the sense that I could potentially offer unlimited data transfer for users webspace. This is essential for mp3 hosting, and I'm yet to find anywhere else on the web that doesn't charge for data transfer, unless I'm completely wrong.
You're right about the admin of user accounts, I hadn't thought of that one.
Eric, thanks for the contact details, will give u a mail.
You're right about the admin of user accounts, I hadn't thought of that one.
Eric, thanks for the contact details, will give u a mail.
)Be very sure to come up with a business model that does support the site or you'll be throwing good money after bad. What is unique about your proposition that puts it in a different position from your competitors that have shut down?
Be tough on yourself. Popularity is very rewarding but can be expensive too.
Be tough on yourself. Popularity is very rewarding but can be expensive too.
PetrolTed said: Be very sure to come up with a business model that does support the site or you'll be throwing good money after bad. What is unique about your proposition that puts it in a different position from your competitors that have shut down?
Be tough on yourself. Popularity is very rewarding but can be expensive too.
Your last point is what I'm rapidly finding out. The server really does have unlimited data transfer, we're clearing up to 6GB a day and had no problems. There's no way I can afford to pay data transfer and in the terms and conditions there's no specified data transfer fee. I see your point about them going bust though, however they are the main server co. in Singapore and server 2/3rds of the country. So fingers crossed it's secure.
BTW Eric and V8 chris, thanks for your mail's I will respond this evening when I have a moment to gather my thoughts.
As for business plans, they are very much finger in air stuff. The biggest problem I have is though my business plan could be financially viable, I lack the technical expertise, or the ability to find people who possess this expertise, to fulfill the business plan. Ideas are all very well, but bugger all use unless they are implemented.
tks guys, am still in a bit of a quandry.
Bandwidth costs almost forced me out of business in the early days of PH and the costs have heavily influenced things since.
I'd suggest that you need a partner that can do the technical stuff in exchange for a share in the business.
It still goes back to needing income though. Don't lose sight of that.
I'd suggest that you need a partner that can do the technical stuff in exchange for a share in the business.
It still goes back to needing income though. Don't lose sight of that.
PetrolTed said: Bandwidth costs almost forced me out of business in the early days of PH and the costs have heavily influenced things since.
I'd suggest that you need a partner that can do the technical stuff in exchange for a share in the business.
It still goes back to needing income though. Don't lose sight of that.
you last point is difficult to keep in sight whilst you have a genuine interest in the whole idea/scene. I have a few ideas on using affiliates and taking a percentage of the sales I generate for them. Talking to record shops atm, and the coding required would be easy to implement. Even I could do it, and I'm no genius.
You're right I do need a technical guru who would be prepared to work for a share of the business. If anyone is interested please contact me on studio@feedthehabit.co.uk, apologies for the spam. Ideally I need someone who's a whiz with web design in particular html and php scrpting. It would also free up some of my own time to get the new site sorted, and concentrate on recording mp3 live sets and uploading content to the site. I dilligently update the site every other day, I think this is one of the reason's it's grown so fast.
PS there are no legal issues with these mp3's as they are all formerly broadcast sets off the radio, we are not broadcasting them, the tracks are blended together not singles. We do not deal with mp3 singles, despite requests to do so. No copywrited CD's are made available for d/load either.
Tell me about it. It was some time before PH was truly viable Gassing Station | General Gassing [Archive] | Top of Page | What's New | My Stuff