Best of the ISP-Lists

Can I Start an ISP With $15,000?

The provocative post to the ISP-NT list, "I've got about $15,000 to start an ISP: Do you think I can do this?" gets members to talk about what they'd do differently if they had to start over, given the lessons they've learned so far.

[February 20, 2001]

On the ISP-NT list in February, DI inquired,

"I've got about $15,000 to start an ISP: Do you think I can do this? Is a profit of $4,000 a month or so pretty easy to reach? If you were starting an ISP now, would you do anything differently?"

A number of respondents recommended a simpler lifestyle:

[SB joked] "I'd buy a boat and go sailing instead."

[DO advised] "Rent a colocated box for $500 a month, and get 225 hosters paying $20 a month. Income? $4000 a month."

Other respondents suggested that $15,000 isn't anywhere near enough money:

[CK noted] "You can start on very low end with a few standard POTS lines and bunch of modems, but then you're never going to make enough to upgrade. The only people starting new ISPs now are ones with a bunch of VC money, and people that can just add it on to their current business without much effort. If you're going to try and start with $15,000, you'd do better buying a boat, shooting a few hundred holes in it, then going sailing."

[RH added] "Check out the available services already in place in your area. You might find yourself two steps behind your competitors, yet trying to charge the same amount for service. Keep in mind: $15,000 won't get you too far."

[DW agreed] "You need a lot more money to buy the right equipment. I wouldn't try to do it on that budget."

Others advised focusing on something other than dialup:

[EQS observed] "Would I do it again? Probably, but a heck of a lot differently. I'd go after the big accounts only; to heck with the little guys."

[PI added] "I don't have any regrets, but I would definitely do it a different way now than I did when I started in 1997. I think dialup is dead as a business, but it's okay as an add-on. Hosting is where it's at now."

[NN contended] "If I was to do it again, I would colocate all my servers at another ISP, put any and all dialup through a reseller, and bill by credit card in advance only."

WS offered a more optimistic perspective:

"Don't get scared, just jump into it. Yes, it is hard, and the rewards may not be great, but most people who do it have it in their blood and wouldn't be happy doing anything else. If it's your chosen path, and if you can cope with the ups and downs, then you will find it a rewarding venture. Remember, though, if you are experiencing problems, whether they be yours or someone else's fault, let you users know: honesty helps. As long as you provide a good service and your prices are competitive, you shouldn't have any problems."

— End