Certainly. Depends on what you need, though. For small but powerful unmanaged VPSes at a good price, check out Linode: http://www.linode.com If you need bigger server and/or don't need as much bandwidth, check out Storm on Demand. They offer full management + cPanel for $20/month extra at all plan levels as well: http://www.stormondemand.com If you need management and a good bit of bandwidth, look at WiredTree: http://www.wiredtree.com Some more info on what you need would help me make a better recommendation.
If you go unmanaged and tune it properly, it sounds like a 512 Linode could handle what you have (if that's enough disk space). I've run a 768 Linode that got somewhere around 400,000 - 500,000 hits on the webserver per day. It ran two Xenforo forums and a vBulletin forum. It's all about the tuning. I'd be happy to help you set stuff up and/or tune it if you'd like.
thanks alot ghan. i was also checking http://www.wiredtree.com/managedvps/ this link that u gave me. is it good? coz its prices seem cheap in regards to what they offer
Yep, WiredTree is good as well. It is probably a bit more than you need, but if you would like the management and cPanel, then they are a good choice.
I advise you to compare all web hosting services, as it is a top priority for your new web host business to be well-provided with all necessary tools.
Ah; there are many good hosting companies providing hosting services there way. It's up to how you're choosing one of them and which basis. I'm suggest you one bw-hostiing.com
I would highly suggest 2GB of RAM, since you're already using 1+GB when your site is idle. I don't think 1GB is enough, to be honest. Still shouldn't have any problem finding that within your budget.
40gb of hard disk space, 1gb of ram at least, good cpu speed is possible. Are you looking for a provider who is in USA?
Think that Tailoredvps.com VPS hosting solutions will be the best for your needs. Support staff is amazing they will guide you on every step, will it be billing, technical thing or you are doing migration. Pricing is cheap. I've seen their representative here, so take your time to contact them and get all the things cleared.