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Web Design & Hosting Business For Sale

Hereford & Surrounding, Herefordshire

Asking Price £135,000
Turnover £75,000

Business overview

We are selling our long-established Web Design Business and associated Website Hosting business. Generating a reliable monthly income.

Business details

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  • Net profit
  • Accommodation
  • Staff
  • Property
  • Reason for sale

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Business description

Web Design & Hosting Business For Sale

We are selling our long-established Web Design Business and associated Website Hosting business. This business generates a reliable recurring monthly income from a loyal client base.

Website Hosting Business

We also own and are selling a dedicated website hosting business; this business hosts a good number of websites, mostly created by us through our web design business and provides a very reliable income. As such they are pretty reliable clients who stay with us for years. Our web hosting business has grown organically from the output of our web design business.

Our Web Hosting business hosts websites by re-selling services from FastHosts and 20i, we have a re-sellers account with both of these companies.

You will get:
• Full control of the two hosting re-seller accounts
• Full details of the clients hosted (and past clients which may also be useful); together with a billing schedule
• All income from invoices already raised (we typically invoice 30 days ahead, so invoices for February are already being processed) from the moment of the sale and all income going forward.
• The company website, domains and email system
• Any Affiliate income – (for example, we are just tying up a useful affiliate facility with a data backup firm)

As the company has also been cash rich at times it also owns some property that is let out; and has made development loans to some of our other businesses. Due to the complexity of this and the fact that we wish to keep the property and loan assets, we propose keeping things simple by releasing the website hosting element of this business.
There will be no liabilities (other than paying the monthly re-seller fees to FastHosts & 20i)

The transfer of this part of our business can be achieved through the incorporation of a new company or through the transfer of the business into your existing business and the re-allocation of open invoices.

Details of our hosting portfolio:
(Correct at the time of writing)
We have been with FastHosts for many years. We are in the process of moving all of our hosting accounts to 20i, as this reseller facility is cheaper yet offers better features and lower cost domain renewals.

We currently offer the following simple range of services:
• Website hosting – our unlimited website hosting facility is £69.99 p/a. (It has been this amount for a number of years and could well be revised upwards)
• Domain Registrations & Renewals - £15 per domain for (we have a very small number of premium priced domains that we charge more for)
• Enhanced Mailboxes (Provided through Fasthosts)
There are many opportunities to enhance this range of services.

Hosted through 20i:
Hosting Packages: 163
Domains: 327

Hosted through Fasthosts:
Hosting packages: 332

Domains: 106

Total Hosting Packages: 495 Anticipated Billing Income at £69.99 p/a: £34645 p/a

Total Domains: 433 Anticipated Billing Income at £15 each: £6495

Other Billing (enhanced Mailboxes etc): Billing over last 12 months: £1501

Total annual billing income from our hosting £42641

(Note: about 20 packages of the above belong to our Trading Company, Online Retailing – we may transfer these out into an account set up for this company or we are happy to discuss terms for these packages)

Costs involved with the hosting:
There are very few costs associated with the hosting.
• Monthly Re-seller Fees – 20i £29.99 + vat per month; FastHosts £50 + vat per month (this will cease once the packages have been fully transferred)
• Enhanced mailboxes – £1.31 + vat per month each, (we sell them for £19.75 per annum so make very little from them – these are being phased-out as the hosting packages are transferred to 20i as the 20i mailboxes are all 10Gb each)
• Domain registration/renewal fees – ( are £4.99 + vat; .com are £6.00 + vat) We charge £15

Website Design Business:

We are selling:
• the Good-Will in this business,
• together with jobs in-hand (currently 10 sites are under construction, mostly pretty complete) with their associated open invoices (currently £4243)

You will also get
• the business website and email account
• the designs in-hand and the archived completed designs (useful for website updates etc)

All existing and past client details will be handed over to you and clients will be informed that you are now their webmasters. Any contact from existing clients will be referred to you.

We also have a number of completed websites available and listed for sale on Ebay - these will be included as part of the package.

This business brings in a steady workload from existing clients and from referrals/recommendations from the above. There has been no need to advertise of work for at least the last 6 years as a result. The web design invoicing is typically c.£32,000 + p/a with negligible costs.
This business has been run as a Sole Trader so to facilitate the easy transfer of ownership this can be made via the incorporation of a new company or via allocating this to your existing business.

We anticipate accepting offers around £135,000 for this business.
We would also consider selling the two parts separately. In this case we would be looking for c.£110,000 for the hosting business and £35,000 for the web design business.

Please note: Stage Payments would not be considered.

Business location

We ran this business as a home based business until Sept 2017. Since then it has shared a high-street style office with our other businesses.
The business is re-locatable and can successfully be run from home or business premises.

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