Your Questions About Business Online Backup

Ken asks…
For online backup business – Do US customers have to pay any Tax as the business is a UK business?
I run and own a business who specialise in providing online backup services (Necoria Backup – www.necoria.com)
I am wanting to create a US version of the website for Americans – I have it set a a flat fee at the moment using PayPal and I noticed the ‘Tax’ section of the software I’m using …
My question – Would American’s have to pay a tax for an online service like this?
p.s. I am also looking to make a Euro version (same question applies)
I look forward to your replies!
Thank you

Jere answers:
If you are talking about VAT then US-no, Europe- Yes.

John asks…
How does a small business build a server for online backup for off site clients?
I want to build a server with appropriate software/hardware to make it very simple for clients to backup & retrieve data.
“Big Cheese” said; “Hire a rackmount server in a data center. Your internet connection wont be sufficient for clients to backup/retrieve data.”
I ask why not & tell me more about a data center & what kind of ‘net connection would I need. How do you know my internet connection isn’t sufficient?

Jere answers:
Hi Ed,
This is a very simple task. Let me elaborate.
You can either rent a server from a dedicated server provider or “host” the server in-house in your office. I’ll start with the latter approach:
1) Buy a server from either Dell, HP, or another vendor with the operating system and appropriate licenses
2) Request a static dedicated IP from your Internet provider (you will need to sign up for their business connection)
3) Install server FTP software on the server (or secure FTP for good measure of security)
4) Create an FTP account with login name and password for each client
5) Deliver the credentials and the IP to your clients and ask them to upload the files using a client FTP program.
6) Be knowledgeable enough to maintain and secure the server from intruders. A compromise could lead to serious consequences such as non-public material business information leak.
Keep in mind that having a server in-house means that you have to have contingency plans in place. For example, what if a component or components fail, how long does it take for the vendor to send and replace the part? Does it inconvenience your clients if such disruption happens? What if there’s a power loss or Internet connectivity loss? Does the power company provider a Service Level Agreement (SLA) whereby they promise to bring power back up within certain hours? What about an SLA for the Internet connection?
Which brings me to the former approach. It consists of renting a fully managed dedicated server from a provider that will take care of all the above without you having to worry about anything. The main advantage being that you’re hiring a provider that houses the server in a data center facility with grid power redundancy with diesel generators (in case UPS and power is completely out), Internet connectivity redundancy (multiple data carriers with failover), and also hardware failure replacement (most provider carry spare parts and servers for rapid same-hour replacement).
The advantage is that you’d be worry free and can focus on your business instead of adding overhead, which is unnecessary for such a simple task. Also, your clients will be more confident in your business.
By the way, how much backup disk space do you need? Feel free to get in touch with me should you have any question or comment (joe at unixy.net or email me at my Yahoo account). I’ll be glad to help out.
Best Regards

Joseph asks…
Is there any Online Backup that has insurance against you losing all your stuff if they go out of business?
I have found many hosting companies, like X-Drive, that offer online file backup. what I want is a guarantee, by, say, a major insurance company, that insures that if a company goes out of business or files for bankruptcy, the files would not get lost.
this should be offered, but it seems none of the major file storage sites bother either offering such a guarantee, or fail to mention it in the FAQ or promotional material.
Thanks!

Jere answers:
Nope

Laura asks…
I have a small business of with 10 laptops. I need a really easy online backup solution that’s for businesses?
Have looked into Mozy Pro and Carbonite. Got a little bit of a scare from Carbonite and Mozy’s seems overly complicated. Suggestions?

Jere answers:
Have you looked at Backblaze for Business? $50 / year / laptop, for unlimited backup. It’s dead simple and automatically backs up all data (not applications). Check it out at http://www.onlinebackupsreview.com/go/backblaze-business.php

Daniel asks…
Which online business idea should I do?
Im 13. I want to start an online business over the summer. I want to make six or more figures a year. That might sound crazy since im only 13, but it is my goal. I have money to start the business, and my grandparents might invest. Coding will be done by my cousin who is at RIT for web design and programming, or I could hire a web design firm, or hire someone from Elance. I have a few ideas, but Im not sure which one I should do. Which one is the most profitable?
1. A website where users can submit original songs and other users can listen, rate, comment, share, and chat. Users can also create a profile page and keep track of there favorite music, find new band members in the band member finder, and post info. I would make money by selling ad space, and I could make money by creating a pro membership level if the site becomes big enough. I would either hire a web design firm (although i think it could cost $100,000, in that case, i wont hire a web design firm), a coder from elance for a good price, or have my cousin code it. I love this idea, and it doesnt have that much competition other than purevolume.com.
2. I would sell musical instruments (bass, guitars, drums, dj and lighting, vocals, keyboards) on my website. i would buy them wholesale and sell them for a bigger price. I would then have the wholesaler dropship to the customer. There is a lot of competition, though. Try Sam Ash or Guitar Center or musiciansfriend.com.
3. A job search website. This could be a site where the employers post wanted ads and people can apply for each job. I would charge the employer a comission to post the ad.
4. A online backup website. This is where customers can back up important data such as files, photos, music, etc. to a sever. I would purchase www.remote-backup.com’s virtual hosting set up for $500. it allows you to sell their customizable software to your customers and access the administrative stuff from a central account on their site. So I could have a plan for 5gb of storage and sell it to a customer for $25 a month. thats around $300 a year from only 1 customer. remote-backup only charges me the once for the $500, and charges me $1 for every customer i get and then $.25 for every gb they use. Many people are backing up now, so this could be profitable. Although there is mozy and snapfish and other companies already around.
4. This is a website where people can post and sell and buy websites. Like sitepoint.com although. This could be a good site though since sitepoint does not focus on buying and selling sites although that is one of their services. This could be profitable by either charging a commision and/or selling ad space.
5. This last idea is a little weird. It is a site where one user starts a debate by putting in two sides such as mcdonalds vs burger king. Then other users choose which side they want to be on, and debate. Each comment they make would be on either side mcdonald or burger king depending on what they chose. and they have an argument. This could be useful in many ways. example, if someone wanted to buy something such as a computer, and they were stuck on mac or pc, they could create an argument mac vs pc and have great answers giving reasons why they should buy mac or pc. based on personal preference, the person could decide on mac or pc based on certain comments. This site could also be used for fun reasons to see which of something is better or what not. I would make money from selling ad space. This would be a fun site and i would hire an elance person or my cousin to build the site.
I like a lot of these such as the music sharing site, debate site, backup business, job posting site, but im not sure which one is good.
Could any of these ideas make me six or more figures a year? Which idea is better? Which idea should I do? Which idea is the most profitable?
Thanks.
(even if you dont think any of these are good, which would you choose if you had to?)
Thanks again.

Jere answers:
I think there all amazing but i think my favorite is the music sharing site. Im 12 and im trying to think of a business to!
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