Define your requirements:
How much disk space and bandwidth is necessary?
Type of hosting – dedicated or private?
Will you require CGI or database capacities?
What operating system will you need?
Will your website have any streaming media requirements?
Will your site change substantially in the future?
Are you searching for hosting only for your purposes or for clients?

User Review Survey:
Always take testimonials at face value. User forums are the best place to find the truth. Also mail webmasters to get a reality checks.
Be wary of Web hosting directories and mailing lists, many are owned & operated by Web hosts.
Read the declarations regarding service uptime, downtime, backup, security etc.

Create a shortlist:
Make a list of hosts that you see are recommended the most and complained about the least.
Determine which hosts offer specific services that you need, with scalability for future changes.
Determine which host fits your price range.

Ask questions:
Ask mundane questions to check the quality, speed & efficacy of their response.
Ask the service providers technical questions to gauge their acumen, knowledge and accuracy.
Ask a lot of question to determine the host’s commitment to customers.
Subject host to an honesty test: offer them the opportunity to up sell you needlessly. (simple yet effective)

The Tricks of the Trade:
SOHO consumers can find the most effective hosting services for their business if they follow and understand the following recommendations:
Make sure the hosting company offers 24/7/365 technical support by phone, email and chat.
Do not be seduced by hosts offering cheap services or extra services than you need. Most of them skimp on security & support.
Choose a host who is flexible, scalable, and who can grow with your business.
Ensure that you can add domains to a core plan and resell services.
Ensure that the host offers a knowledge base of scripts, online marketing effective coding. (A surefire way to check their scale of operations)
Check to ensure that the host offers some level of interaction.
Watch for signs of rudeness, impatience and unresponsiveness.
Do not sign a long-term contact for hosting services right away.
If you have more than one site, consider spreading them among several hosts.
For a small web business start-up, choosing the right ecommerce hosting at the right time can be the best strategic move. It can enable your business to grow fast and offer you a high ROI. Reliable and affordable web hosting can be the crucial factor between failure & success .