I am wanting to start a small web hosting company, and want my expenses to be minimized as much as possible. Is VPS the right choice or any other ideas? Thanks.
Simply put – no. Unless you get a very high powered VPS (i.e. expensive) then no; your best bet for a small webhost would be a reseller account with a host on a dedi 
Simply put – no. Unless you get a very high powered VPS (i.e. expensive) then no; your best bet for a small webhost would be a reseller account with a host on a dedi
References :
Run a small internet solutions company
I recommend no.1 VPS / dedicated server company like liquidweb.com they are very best normal support request are replied in 10-20 minutes which is fastest in term of reliability
they are good to what they do best things are:
1. good rates and packages 2 plans of vps
2. they do daily backup of whole vps to have us in safe hands.
if u want u can try up the url we given to see the good things of their packages
http://www.liquidweb.com/?RID=b4uindia
References :