If you are planning to start your web hosting business, there is an easier way out without spending any money on the hardware/infrastructure. This business model is especially useful for small business owner with services related to IT, web designing, or creation, etc.
What you can do is to purchase a reselling hosting plan to make money by offering hosting services to your clients. Typically, reseller hosting account comes with everything you need to sell hosting for your client. It usually take less than 5 clients to cover the cost you have pent in the reseller account. As a reseller, you collect 100% of the fee directly from your client, and you can also use your own brand name, prices, & hosting packages if you want.
There are many web hosting companies that offer reselling account. If you are just started, I suggest you try out one from Hostgator. In term of affordable, support and quality, Hostgator is definitely one of the best in it’s category.
If you are looking for a much high end reselling hosting account you can try out: Rackspace(note that the price is a few times higher that Hostgator). However, offering an reselling hosting service with Rackspace is not as easy than compare to Hostgator. What I would say is that for typical site, Hostgator is definitely more than sufficient. You choose Rackspace if you are anticipating high bandwidth is required for your client sites.