To summarize few basic steps to start this business are:

1.  Sign Up for Web Hosting Reseller Account

First off you need to sign up for a web hosting reseller account (e.g. http://www.hostgator.com/resellers.shtml) or any other reliable web host or data center which offers Reseller plans. Three popular web hosts which offer reselling services include GoDaddy, Site5 and Blue Host (Google it). Choose the best bandwidth and web space plans, which you think should be enough to start off for a few customers. Tip: Prefer managed Reseller plans (bit costly) but more reliable since you do not have to worry about backups and custom requirements.

2. Setting up your own Website: for Web Hosting Service!

Time to build and setup your own website, (obviously this itself will require a Web Hosting Plan) There are quite a lot of FREE web 2.0 Hosting Website templates, ( just search Google ) or you can get many free at http://www.warchain.com

http://www.warchain.com/2010/06/08/smooth-web-themeforest-hosting-template.html

http://www.warchain.com/?s=hosting

3. Prepare Hosting Packages and Price Offers!

This is the part where you need to think very cleverly, study the Hosting market, check if your competitor Hosting Service Provider companies are providing plans, and at what cost. Try to offer as cheap as possible, to fetch a good start and attract maximum clients.  So, setup few hosting plans with specified category requirements.

4. Advertise/Publicize your Hosting Business through all possible available options.

Advertising your Business (your New Web Hosting Website)  is the hard part here. You will need to think of all possible ways to gain publicity and attention of the webmasters. Either you can offer, Extra cheap packages, some unique featured Hosting plans, Extra Bandwidth Plans, Extra Web Space Plans or offshore hosting plans to attract clients from maximum possible genres. Utilize social networks such as Facebook, Twitter and Banner Advertising. Market your website in every possible way.

5. Maintaining the Standards.

At the end: Price, Quality of Service and 24×7 Support are the factors which matter here.  Which ever company takes care of these key factors, will take advantage in the long run.