These are all good points. I might also suggest that you find something that makes you unique and different from all the other small hosts out there. What do you offer with your accounts or your hosting that makes someone say, wow, i'll choose them.

Having been in the hosting business for over a decade, I think that having great reseller tools/packages can help a company sky-rocket their sales.

For instance. Company A, just offers a reseller package, but Company B offers a reseller plan, with templates, and turn-key sites, along with support software, and billing software.

Company B is more likely to get sign-ups even if their price is higher. When you add up the added value of having those softwares available as well as the value of having a turn-key site solution, you have completely differentiated yourself from Company A...