After working for many failed hosts and seeing many hosts fail I have some advise that people may find useful. Some of this information may have been posted before.
Installing OpenVZ on a Decent box business model
This is a big one. You cant start a host by installing OpenVZ on one box and running everything of one box. I've seen many people think they can start a host by installing OpenVZ on a box and guess what? They close down due to software issues they cannot fix or they run out of money. This way is not only bad but very hard to do Why? What if your box gets hacked or the network goes down etc.
Many people expect 24/7 support and if you have school, work, Or someone else to do during the day you cant put your customers on hold and expect them to wait if they have a very serious issue that needs attention. You need more the one person to start a host.
I've seen many hosts charge 9.99 Month for a fully managed 512 MB VPS with 30 GB disk. I think this is a bad idea as you need to charge a decent amount of money to pay for the hardware, the staff, and your profit.
Here is an example.
Put them together charge to little and it leads to your host closing or overselling which turns into server speed issues. When your not there your clients get mad and leave due to lack of support and server speed problems.
Client and Host Data/Databases
When people host with you they expect you to take good care of there data. Alot of people think RAID is fine for backup. Let me say RAID is not a backup Solution. If you are going to do real backups you should do off site backups onto another two secure server's just in case one has an issue. I've seen some hosts not backup there client database and this is a very bad idea? What if the database gets hacked or becomes corrupted beyond repar. All client data is lost and you loose track of stuff and the clients which can turn into a disaster. Clients should backup there data in case of issues with backups etc.
I've been offered really low pay for a support job. If you are serious about your host it's going to cost some money to start and you will loose money the first few months. If you aren't willing to take that risk then you shouldn't start a host. With this kind of pay you are likely to get people who really don't care or who work for other hosts.
I hope you found some of this useful and I would like comments on this post. This was written by a 16 year old.