Hi, You could target forums like, webhostingtalk.com and get your name seen there, and also take a look at tophosts.com and see if you can get your website listed there. -- Phil
I would use natural SEO to get on the front page for competitive keywords relating to web hosting. I would accomplish this by writing a couple of articles and doing many link exchanges. The time depends on how fast people will trade links with you.
You have chosen a dramatically increasing competitive niche. Firstly if you really want a successful business than you need to spend too much money on promoting your hosting company, like as on google adwords, offering affiliate program and yes SEO etc Secondly your company doesn't only need promotion, suppose you promote it well your company and have many traffics and client but if you doesn't fulfill your users requirements which they needs you will lose your customer too fast, and your business will become fail, so this needs again spending money on hiring a lot of employees to manage things, like support etc and yes paying for high servers etc. Do you know companies like BlueHost owns about 200 employees can you beat that Thirdly you can become a small hosting company without spending too much money but you will have to wait for long time i guess, why because you need to SEO your site making backlinks, article marketing, social bookmarking, forum posting, blog comments, etc and yes this need time In conclusion you may not know this, when every one search on google for web hosting, google shows on top the web hosting reviews site they feature those top hosting companies like bluehost, hostmonster etc so customers buys from them why google shows those reviews site on first pages, because those reviews sites has spent time and money on SEO and those review sites only feature those top companies, so in my experience new hosting companies sites will hardly become popular in this BIG Competitive industry don't be hopeless you may give a try to your new business and see if you can achieve what you want! Hope this help
webhosting is very competitive market , so let me tell you wisely you should prefer paid methods like ppc . But if you want to go for free methods then try forum advertising ,article submission and concentrate on seo.