If you are considering to implement a hosting solution to host production web sites for customers, there are quite a bit of things you need to think about.
The first thing that comes to mind is that you should consider that you will need more than one server. Your customers are going to expect (if they are paying you) a certain level of service. With one server, it will be difficult for you to provide a highly reliable, fault-tolerant solution. If that server fails and you have 500 webs on that server, they will all be down and very upset and frustrated.
To create a robust, highly available, fault tolerant solution, you need to start with the physical location of your hosting service. Since it will be very expensive for you to build out a data center, you should shop around to find a data center that you can lease floor space from. Next, you'll need a reliable, fast internet connection. You'll also need a fast and reliable local area network to host the various network switches, load balancers, web servers, database servers, backup equipment etc...
Alternatively, if you want to proceed but are not ready to host all of your own equipment, you can find a provider that you can partner with and resell their services until you are ready to proceed on your own.
Hope this information helps you and good luck in your endeavors.
JorgeM
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JorgeM