Create Your Own Hotspot

For free hotspots, the cheapest and easiest way to get started may be to simply do it yourself. Setting up your own Wi-Fi hotspot network isn't much different than putting one together at home. You can pretty much just go to a retailer like Best Buy, pick up a wireless router for less than $100, connect it to your broadband DSL or cable modem line, and stick a "Free Wi-Fi Here!" sign on the door. You may also need to talk to your Internet service provider (ISP) to find out whether you are permitted to allow others to use your Internet connection. Some providers charge up to twice as much for a business-class DSL line as for a consumer line.

Setting up a wireless router is easy. You'll usually be up and running just a few minutes after opening the box. But for more guidance, check out JiWire's guide to building a home Wi-Fi network. The basic procedures are the same for small businesses.

Once connected and turned on, your Wi-Fi hotspot will be available to anyone with a properly equipped laptop or PDA. Also, you'll want to leave encryption off at public hotspots, to make it easier for customers to connect. Note that if you use one broadband connection for both Wi-Fi service and your own computers, you will also want some form of protection -- a gateway or firewall -- that prevents hotspot users from getting inside your systems. If your own computers are wireless too, you'll want to register them on your secondary encrypted network.

When setting up your hotspot, we recommend putting up a home page that appears on customers' computers when they connect, possibly requiring them to create an account (whether free or for a fee). That way you can keep track of who is using the system for marketing and/or billing purposes. The home page should also warn customers that they are using the network at their own risk, since your business isn't providing security, and Wi-Fi networks are notoriously vulnerable to eavesdropping. If you're not a server maven, you might need to get some assistance in making sure this home page always appears.

If you plan on setting up a free network this way, consider Less Networks' Hotspot Server or PublicIP's ZoneCD, two free gateway software packages specifically designed for no-fee Wi-Fi hotspots. The Less Networks software runs the free locations offered by the Austin Wireless City Project in Austin, Texas, and ZoneCD is used by many public libraries as well as cafe-type locations. Both provide centralized management features and simple setup that requires no technical knowledge. Both also have active discussion forums for help if you should need it.

If you want to charge a fee for your hotspot, check out PatronSoft's FirstSpot, a software solution with credit card billing and customizable management features.

Keep in mind that you will start getting customer support questions: connections could be spotty on your homegrown network (consumer-grade access point equipment is not designed for robust coverage like business-class Wi-Fi gateways) and some wireless subscribers might not be able to connect at all due to incompatibilities. But since you're almost certainly not charging for access when you're doing it yourself, their expectations are not likely to be as high as they would be if they were paying for it.

If you want to avoid the hassles of doing it yourself, consider the next two options: buying a turnkey hotspot solution, or working with a hotspot provider.

Whichever way you go, also be sure to check out our top 10 tips for managing and promoting your hotspot. After all, your hotspot service should help you attract new customers, as well as get more business out of existing ones.