Find a niche and stick to it. To get ranked for hosting is hard work and any top keyword has so many sites listed it is hard to get ranked well
I suggest not, go through the popular hosting company packages 600 GB for $5 etc, it will be very tough unless you are concentrating on a specific area where there are high barriers to entry
Well said. Hosting is an extremely saturated market, and you'd need to be pretty unique in order to stand out. Good luck.
Offer huge discounts at the beginning to build up your reputation and client base. Make your website REALLY unique
As this area is very saturated I suggest priding yourself on Customer Service, In-Depth Knowledge of the Hosting game.. and offcourse your Quality of Services you provide? Are you looking at high end servers? low end servers? Shared Hosting? VPS?
Going reseller route would be good to start over, there are still good scope for hosting business if you've nice plan and targeting specific niche as million of new sites are added on web space regularly.