The business plan of an Internet provider should include, first of all, the costs of technical equipment.
Investment costs for project implementation
1) The list of necessary equipment includes:
- various cables and tools,
- spare parts,
- uninterruptible power supplies that will be able to provide at least 3-4 hours of operation,
- web server.
In addition, you can not do without racks and cabinets in the server room.
On average, the cost of equipping a small company varies between 450-600 thousand dollars.
2) About 350 thousand more dollars will go to obtaining a license, registration, services of a consulting firm.
3) For the purchase of furniture and office equipment — 250 thousand dollars, for advertising — 50 thousand dollars, for repairs in the room — 100 thousand dollars.
4) For other expenses, you should leave at least 50 thousand dollars.
On average, it takes at least 1 million 200 thousand dollars to open a sufficiently large Internet provider.
Running costs of an ISP business plan
1) When thinking about an ISP business plan, don’t forget about the cost of employee salaries. You will need to hire:
- repair technicians,
- technical assistance operator,
- several sysadmin assistants
- the system administrator himself.
If you do not want to do the bookkeeping yourself, then you will have to hire an accountant.
2) There are many areas of business in which advertising is not required. However, ISP services are not among them. Remember that many people use the services of those companies that they have been used to for a long time and whose name is well known.
Your ISP business plan must include advertising costs.
3) Plus — the expenses that await you every month — renting a room of 100 thousand dollars.
The effectiveness of the business project «Internet provider»
Should I leave an ISP business plan at all, and how profitable can such a venture be?
- Let’s start with the fact that the global web is necessary for everyone. The Internet penetrates into all spheres of life of a modern person, and you simply cannot do without it. And this means that the need for the services of providers will also always be.
- Special attention deserves the fact that many providers aim to open points of sale in large cities and district centers, where most of the solvent population is concentrated. The main tidbit: apartment buildings and buildings with offices.
- Country real estate is of increasing interest to buyers. And therefore, we can safely say that in the suburban market of providers in Russia in the very near future there will be a stir. You can lay your network near the freeway, highway, country road.
In order to calculate the payback of the project, you can follow this link:
Try creating a small network for a business center or apartment building. At the end of the first year, you will understand how profitable your business can be and whether you should do it at all. In any case, this is a very promising business, however, not without certain risks.
For more information about the business idea, also read the article: “ How to become an Internet provider? »
You can order an Internet provider business plan on our website: