In order to start up a hosting company, the least server type would be at least Pentium 4. The Magic Host uses a higher server type Dual Intel Xeon + server for all our shared and VPS hosting plans. We have told people not to trust the spaces and bandwidth, then what do we trust? We need to find out what is the server type used to host your account and how many concurrent accounts are hosting with you on the same server? Dual Intel Xeon is a very powerful server. Most hosting companies would host from few hundreds to few thousands. But often we found those who host too many accounts (like few thousands) would definitely slow down the entire server performances or even cause downtimes.
Is the website you are hosting a private one? Perhaps it is a Contabo family portal that is meant only for your family members relatives and friends. Or, are they websites that you will promote to the general public to get as much visitors as possible? In that case, your traffic volume will be quite high each month.
Does the hosting provider gives you access to a control panel? Cheap website hosting doesn't always give you access to the guts of your website. This is the place where you are in control of everything.
There are a lot of web hosting review sites. Visit these sites and see what customers are saying of the web hosting provider. But please note, do not take everything you see at face value. No hosting provider is perfect, and all hosting providers WILL get some bad reviews. The trick is to determine how well the problem was handled and how well the hosting provider recovered or did something about the problem. It is also worthwhile to visit hosting review sites where some type of rating is assigned to a host.
Remember that for your site to have the maximum exposure you must be able to update the contents of your site every now and then. If the data stored in your site is stationery, meaning you never added anything in it how can hour customers be updated on the latest products or services that you offer. As the business grows you must also be more competitive. You should not rely completely on what you have installed in your website at the moment that your business commenced. Rather you must be challenged to be updated in order for the customers to always have something fresh to look forward to in your website.
Send a pre-sales question through their support ticket system and make sure that you are happy with the way that the support desk is set up. You might spend some time here in future and you must be able to initiate and sustain support tickets easily.
Keep your old web hosting account going for at least another week or two to ensure that all the gremlins are ironed out more info and that the DNS propagation has taken place properly.