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The hosting business is one of the most competed on the net. Ok, Now, Let's think about growing your business. To grow your business first you need to get many clients, second you should prove to them your hosting service is on par with the best hosting providers out there.
Now, how to get new sign ups? First you need to research a bit on many of these webmaster, hosting and domain related forums, where you can get potential customers. Make note of which companies are offering which promotions and their prices for the hosting packages. Now, offer somewhat competitive prices (or even low prices than those companies) for your hosting for the first 6 or 12 months. Tell them it is a promotion. That way, you can get many quick sign ups. If you have budget, you can do it right even if it means a little loss for that period. Offer them good customer support (better than some of those big hosting companies, if they respond to their client tickets in a hour or so, you should be even better responding to their tickets and resolving the issues within minutes). Needless to say your uptime should be not less than 99.9%.
That way you can instill trust in them. If they are satisfied with your hosting and support, then the word of mouth promotion can do wonders to your business. After the end of the promotion period (the low price period), you should be able to make good profits.
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