A network engineering business is also known as a computer consulting business. According to PCMag.com, it is all about designing and running local area and wide area networks for an enterprise. If you want to start a business providing data center services, there are certain things that you will want to know.
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Steps to establish a computer networking business
All of us need round the clock internet connectivity whether it be houses using home computer networks, enterprises, businesses or schools. They rely on networks to function daily. Whether it is a large setup like a building or a home, both use the same technology, but on different levels. However, business networks come with high-end features such as a strong firewall against data breaches, cooling systems, and exclusive infrastructure. You may cater to both, but first, you need to learn the basics of network design.
1. Business Network Design
Small office and home office, generally known as, SOHO networks normally function with one or two LANs or local area networks. The network router confirms the IP address of the devices connected to LANs and gives them access to the internet.
Large setups need larger network layouts of local area networks. Corporations having offices at different locations establish internal connectivity with each other. This type of connection is called campus network and when buildings are situated close to each other. When connectivity is established across cities and countries, it is known as a wide area network.
Locally, companies establish a network through wi-fi or wireless connections. To access the internet with more speed, office buildings connect their systems with high-speed fibre cables. This is known as Ethernet Cabling for accessing the internet with great performance and speed. The most common form of fibre cable used is CAT6 and CAT6A. It may come with iron mesh cladding or not depending on the location.
2. Recruiting technicians and engineers
For providing network services, you may need to hire a team of network engineers that can install servers and racks in an enterprise. They should be able to make a layout of the building, be perfect in saddling, cladding, and dressing the server rack. It is the most important part. A shabbily dressed data centre server rack is hard to manage. For getting your hands on the right people, contact people who are already working in the field. Those engineers who have been working with a bigger organisation will come with invaluable experience. Try to get them on board by offering them to be a shareholder in the company.
3. Complete all the legalities
First of all, you will have to decide whether you want your business to be a partnership, proprietorship, or a company. If you are confident enough that you can pull all the things off by yourself initially, you may start with a partnership or proprietorship. Incorporate a company if you are planning to get many people onboard as shareholders. A private limited company is safer and appropriate when more than 3 people are involved as it doesn’t make you obligated personally in case of any default. In a partnership, all the partners are personally responsible to creditors as a partnership is not a legal person. A company is a separate legal person other than its directors. You can also go for an LLC. It is a hybrid of partnership and company. You will have to take care of hundreds of compliances required by law to follow as directors. In LLC, things are not that complicated.
For incorporating a company or LLC, you will need to declare the object and purpose of the company. Its Memorandum of Procedure and Articles of Association, forming the constitution of the company should be drafted carefully to include the nature of business and other allied businesses. You may take the help of Legal Zoom or Secretary of State’s office or division of corporation’s office for filing your articles of organisation.
Do not forget to apply for an Employee Identification Number. It will be optimised with the Internal Revenue Services for opening a bank account in the company’s name for carrying out transactions for pre-incorporation contracts.
4. Secure a name
For starting any business, the name of the business is to be secured with any government agency according to the law of the state. It is to be noted that the ratifying authority will look if there is not an entity already running by the proposed name or does it violate any bylaw of the state registration. An official address of the company should be furnished along with the application.
5. Capital and marketing
You may issue an IPO after incorporation to raise money for carrying out the business. You may also apply for a state-funded loan for start-ups through Small Business Administration’s website. Set up a marketing and sales department for generating leads for the business.