inheriting customers is a very very very good start in web hosting business

I'm of the opinion that web design is still a local business. I know there are some large national houses that do web design, but the most successful web designers I know are all local folk doing work for other local folk.

With the advent of the advanced web design tools that are now available, many people think that they can design their own website and don't need a professional to do it for them. Most of them are wrong and they go about creating abominable wrecks because they have to sense of colour or the technical knowledge to make things work, but the perception is still there.

Web design is one of those niches that I think will remain a relationship business. People need to know and trust their web designer/hoster/developer and I think that's where the real gold is.

My 0.02.

Thank you, everyone for your replies. Although we've slowly have grown, we would still love to take on more work and host more sites.

One of the biggest things to remember in any business is that it takes time. Give it time, post to forums with your signature.

Brand yourself, get a good slogan and logo and work on branding it.

The biggest thing you need is over time for people to recognize your company name/logo.

I've heard many people they get their business through word of mouth. I really don't find this to be true. Even my very best customers only refer customers every now and then and its not enough to replace an effective marketing force. I think the people who say that they get their business through word of mouth simply say that #1 because they don't know how to market #2 they dont want to give away their marketing secrets... let's face it web hosting is just not a popular topic at parties, dinners, etc.

webhostingdesign has a very valid point there. word of mouth could be helpful, but there needs to be a strategic marketing plan to face the competition.

Hey,

Not sure what billing software your using?

Howevering offering advice from the mistakes we made by trying a few and spending lots you can get no better at the moment (IMHO) than WHMCS www.whmcs.com

Its worked wonders for us does exactly what we ask of it.

Now compared to MB5 which we bought a 250 licence for and now dont use because we were spending a lot of time fixing and having to do ridiculous things that should be built in and simple

For example you couldn't just offer a free domain by putting a tick in a box like WHMCS oh no it was far deeper than that! just overkill and it was quite slow.

And dont even get me started on the support! - once you got the support it was great but 9-5 mon-friday is quite poor.

Apprently MB4 was much better but we never tried it.

Thats my little bit of advice!

Paul

Why dont you try investing in advertising ?
google adsense would be a nice start...
try advertising in local news papers too