If its a normal traffic website then one should start with Shared Hosting. Many hosts offers levels of shared hosting i.e multiple shared hosting plans are available and higher plans have more resources available and less number of users setup. So start with shared hosting plan, upgrade to higher shared hosting plan if the site grows then to VPS and finally a dedicated server if you get that much traffic.

But it truly depends that how much traffic the website gets and how much resources it require. This will decide the plan that one should have. Best way is to submit a query to different hosts with the requirements and get an idea that what they suggest.