I have already invested close to $300 in my new reseller business. It offers free as well as paid web hosting. I purchased license for forum, website designing, WHMCS and few more things and investment has been little high.
How much have you invested in your reseller business?
Well what you spent is change money compared to what my owner inversted.
How much do you think a few servers with Core 2 Duo E6600, 4 GB of DDRII and 2*400GB HDDs per server would cost? Not even mentioning colocation, wages, etc, etc
The OP is starting small though, very small. I know it is to be in the position where $300 is just about all you can afford to spend. You need a big chunk of luck to get the business off the ground when the budget is so limited, but I don't think it's impossible to do it.
A while ago I was considering starting a hosting business myself, off a reseller hosting account. My necessary budget kept on going up, once I started to consider not to cut corners. Eventually I let the idea go, as I realized I wasn't ready to commit to it full time (too much going on in my life at the time).