Before you start searching for the hosting company, you should set your goals. Below are three levels of needs that will help you in finding the most fit hosting service for you.

How much server capacity you need?
This is the basic of the basic in hosting requirements, Your options here will determine all the other requirements as well as the limit of growth for your website. There are three components to a web server capacity: hardware processing speed, hard disk capacity, the operating system and web server application, and finally, the traffic bandwidth. The options you take mostly depend on: the purpose of your website, the size of content and the amount of audience you are targeting, and last but not least, the success of the marketing effort you do to promote the website. For example: an online gallery website requires more hard disk space and bandwidth to store and download photos than a blog website. A forum website open for public requires more processing speed and bandwidth to handle multiple users at one time than a customer portal with restricted number of users. Are you planning to move data and process from MS SQL database? Then your server setup is more compatible using Windows and IIS. Are you investing on advertising in major media? Then you should be ready to have large bandwidth to handle large number number of customer visiting your website.

Most hosting companies have two general options regarding the server capacity: shared or dedicated. Shared means that your website resides in a pool server where other websites also reside. In this one you might still have fixed hard drive space and bandwidth, however, you will share the processing speed of the server with other customers. Dedicated service, on the other hand, allows you to have the entire server dedicated to your website (or websites if you have more). You will have all the flexibility to fully utilize the resources available and upgrade the hardware, but this may come at a much higher cost.

What are the functionalities you need?
At this level of needs you should probably understand that your website can function more than just an online business card, but rather a tool or vehicle that can drive your business at a higher speed. The answer to this question will cover the additional softwares or features available on the web server and the specific technology behind them. Aside from the web server application, these are the most common software bundles that hosting usually provides: server-side scripting support, mail server, FTP, and database service. A single option that you choose at this level might not limit the growth of your website directly, but combined, they will have significant impact on your site. For example: if your website function as an e-store, you would probably need database and server side scripting support to store all the product and order data efficiently. If you need full control to modify every little detail of your website page and files, then it will be better for you to have FTP access to the web folders. If you have a customer portal where you will need to send mass announcement or newsletter, then a mail server application will be a good addition on your server.

How are you going to manage the website?
As your business grow, you would consider some alternative in managing your website. The answer to this question will help you determine: the access level to modify the server configurations and features, and the support that the hosting provides. Some hosting companies only provide limited control over their services and server setting, in which, one must login and go through a control panel interface to create or add pages, email accounts and database. Other hosting companies, especially on their dedicated service, provides full control to the server, giving you an administrator access to install / modify the system configuration through the shell access. Regarding the support, some hosting companies provide unlimited maintenance support with 24 hours toll free number, while the other companies only provide email / online ticketing system to report the problem.

How much are you willing to spend?
Capacity + Functionality + Support = Price of investment

This is always true most of the time. Everything has its price, the more you are willing to invest, the better service you’ll get on your hosting service.