I've been providing hosting to a small group of people since 2001 and have been growing slowly but steadily. I've gone from a single leased server (celeron @ ev1), to multiple leased servers (pentium4s at servermatrix), to multiple powerful leased servers (dual xeons at theplanet) to now my own full cab with 12 servers and hardware load balancers. Obviously this has cut into my profit margins greatly, but you have to spend money to make money. I've recently increased my offerings (in terms of disk/transfer, emails, databases, etc) but haven't seen much growth. I'm still in the black, but not at the point where I can quit my 9-5 and dedicate all my time to improving the business.
Does my pricing structure make it seem too fly-by-night? Can you think of anything that I can improve on to help draw in more customers? I'd love to get some professional opinions on these items.