So you're thinking of setting up your own web hosting business using one of the many lucrative reseller packages available to you from practically every single 'big' web hosting company. While some offer you a range of different products than others (cpanel, templates, and a brand-able interface), if you consider the cost of some of these packages per month (£30), the idea seems very attractive.
Considering the cost of the initial investment once you have bought a domain name, reseller package and Google adwords deposit (as well as other things) you are only looking at around £50 to have a fully operational website up and running.
One important factor many people neglect when setting up what they believe to be a simple business is how much time you need to dedicate to supporting your customers. No one will sign up to your business if you do not offer a 24/7 email support option as pretty much all of the larger hosting companies offer this.
If you are really thinking of moving into this sector and are put off by the vast amount of web hosting companies already on the internet, I would say persevere. I really do believe that a small web hosting company with cheap prices, great support and an all round attractive business model can succeed against the larger, well known companies such as 123reg, UK2 etc.
If you are worried about losing your initial investment and the whole business falling through within the first month, why not ask a few of your friends if they are interested in helping you to setup the business by offering them a share of the profit. Web Hosting is a great way of receiving regular monthly or weekly profit from your customers.

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