I'd advise you to begin on a reseller account and make sure you can get steady clients before upgrading to a dedicated server. Even try a VPS account, if you'd like.
If you look at how the hosting field has became, you'll realize how competitive its become and how difficult it has become to begin a new buisness. Consumers of this field are now, more than ever, interested in a strong reputation with a large buisness history to back it up with. With sites such as ServerTalk, and WebHostTalk, you'll find how people shop more, before they buy.
For the consumer, this is a great thing as people begin to purchase reliable services and experience less issues in a setting that could otherwise prove to be difficult. Although, for newer buisnesses, they need to work that much harder to win the consumer over larger companys such as, LiquidWeb, 1and1, LayeredTech.. just to name a few.
Before you invest so much into a company that could take the risk of not growing for some time, invest smaller amounts of money into a Reseller account, or VPS. With either, you'll have more money to advertise with, and more time to hire staff, as well as build the foundation of your company.
In time, and patience, you may be lucky enough to become very successful. The mistake that many people make is assuming that within 3 months, they'll be swarming with customers and everything will be great. The fact is, that in some cases, years pass before they have more than 10-15 steady clients, and they've lost huge amounts of money. This could lead to bankruptcy, or other issues down the line.
I'd advise either LiquidWeb or LayeredTech services for your hosting. I've used both, and worked with them on a very professional level and I've been satisfied. They have yet to let down I, or any of my clients who I've referred to them.
The best of luck goes to you.
