Right, exactly. Not only that, but the industry is basically 98% scumbag confidence men and thieves (e.g. any number of brands run by Colo-Crossing). You will be trying to make a name for yourself in a field dominated by some of the worst people you'll ever meet. Even if you make it out of the cesspool to the top and start competing with businesses that are more or less honest (because they make enough of a margin through volume that they can afford honesty), you're competing with the likes of Digital Ocean, Ramnode, Linode, OVH, or even AWS, Rackspace, Google, Azure, etc. Basically, people that know what they're doing and have pretty loyal customers (loyal because of having dealt with the dishonest majority of hosting providers). If you do decide to go this route, managed hosting service with some kind of bespoke development (e.g. web development) services is probably your best bet, and don't skimp on the customer service even once.
I mean, do whatever you want, but as someone that's had to work with this industry for fifteen years, I recommend against starting a hosting business.