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Tips on How to Choose the Best Webhosting for a Small Business

Posted by at HostingXtreme on Comments Off on Tips on How to Choose the Best Webhosting for a Small Business

webhosing and small businessAre you a proud owner of a small business and who is adamantly looking for the best web hosting service? If the answer is yes, there are a number of options out there for you. Nevertheless, there are a number of things that you should keep in mind before you make a choice. Firstly, it’s imperative to know that you will not need a highly complex website if you intend to design a simple informational website about your small business. The most ideal website for a small business is one that does not have excessive features. Secondly, it’s important to note that there numerous webhosting companies to choose from. The best service provider is one that will serve your specific needs in the most professional and cost effective way. Thirdly and most importantly, you must be aware of the aspects to consider when making a choice of webhosting services. The following are some helpful tips on how to choose the best webhosting service for a small business: –

  • It should be flexible

Your business may be small at the moment, but it may not necessarily remain like so forever. Therefore, you will need a webhosting package that is flexible, which means that it should be capable of evolving as your business continues to grow.  However, you should consider what amount of space will be enough even if your business were to grow. There are those webhosting companies that advertise huge packages that have up to 25GB or even more. The truth of the matter is that a majority of websites won’t use even one percent of that space. Therefore, you should look for a package that is flexible, but have just enough space to allow room for growth.

  • It should be simple and precise

Like earlier mentioned, a webhosting solution for a small business should not be complex, but rather simple and precise. There is no need for excessive and intricate features that will not be in use. What you need is to identify the features that are necessary for your specific nature of business and ensure that they are included. Do not pay more for features that you will hardly need.

  • It should be highly secure

Security is of paramount importance, thus imperative for you to ensure that a webhosting company provides you with a package that guarantees it. Your customers will only transact business with you online only if they find out that your site has put measures in place to enhance security. Therefore, it’s best that you transact with a highly secure server with https:// capability simply because your potential customers will be expecting it.

Another important aspect to keep in mind when shopping for the best webhosting solution for your business is to never shop for a web host based on the plans it provides. Shop for a web host based on both experience and recommendations. If you do not wish to spend so much of your time comparing web hosting services, you can take a look at a variety of websites that give comparisons of the most competent web hosting services that are ideal for you.

There are various web hosting providers on the market. The common strategies that web hosting providers use to entice you into their programs involve using attractive pricing for longer term plans. They discount the inherent interest on the time period at their rate of return and offer the difference to you as a discount, just like a bank pays interest on money. For example, if you were to pay $10 per month for a particular service for 1 year, you would end up paying $120 at the end of the year. But if you paid $120 at the beginning, you would actually pay more than $120 in total, since the interest on $120 for one year would increase the effective price you pay. If the applicable interest rate or discounting rate you apply is 10% the effective price would go up to 120 * 1.1, which would be $132 per year or $11 per month. Thus, as a consumer you should use the effective rate of return in your business, or the effective rate you can earn on that money and the hosting company would use their internal rate or return or the rate they pay for borrowing funds, to adjust the price of the plan.

Hosting companies would generally never disclose their actual rate of return or their borrowing cost to you, and accordingly the decision would turn on your cost of money.

For example, BlueHost one of the largest web hosting providers in the world uses this tactic. They offer;

I. A 1 year term at 8.99 per month, which is $107.88 per year.

II. A 2 year term at 7.99 per month, which is $95.88 per year.

III. A 3 year term at 6.99 per month, which is $83.88 per year.

The essential difference in the three plans is the cost of capital. The first plan is one where you pay  $107.88 while the second one is where you pay two years in advance ie. $191.76. If you assume a 10% rate of interest on your own funds, you would rather take the two year plan, because even if you hypothetically invested the extra money, you would be worse off. The rate Bluehost uses to discount the plans is 12.5% and accordingly, if you could get more than 12.5% on your money you would be better off paying for one year, investing your money yourself and renewing every year at the same price.

The above calculation however assumes that BlueHost does not modify their pricing, during the time period.

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