Just as a yellow pages listing used to be vital for business, these days no company can be without a web presence. But since business owners are good at their business rather than web design, they're likely to need some tips on finding cheap web hosting so as to get their website up and running with a minimum of waste of capital.

In order to choose the best web server, and to find a cheap web hosting plan, it is necessary to first understand the role and function of the web host. Firstly, a web server hosts, or provides space for on a server, all of the files that make up a web site.

The web host's servers enjoy a high-speed, high-bandwidth connection to the Internet, allowing web sites to be served anywhere in the world without delay. Some web hosts also provide the client's connection to the Internet, although this function is typically purchased from a separate provider commonly known as an ISP.

The sharp entrepreneur may wonder if more money can be saved by hosting their web site from his or her own home computer, or small business network. Serving a business web site from a small network is possible, but typically not practical. Even if designated as broadband, the bandwidth of the small network's connection is typically far too limited. The web site could not be served to enough customers simultaneously without first significantly upgrading the physical connection - an expensive proposition only making sense for certain large businesses.

A dedicated web hosting firm makes its money by providing services to a sufficient number of clients to cover what it has spent on equipment and connectivity. The services are generally packaged into hosting plans. The cost of such a plan increases as a client company needs a greater amount of bandwidth and server space.

Small business customers have to add the bandwidth so that they can pick the best cheap web hosting plan which will give great service, without having to throw away money on unused bandwidth or server space. The majority of web hosts give tools and information for adding bandwidth and server space requirements.