To me, that seems less like a hosting company, and more like increasing utilization.

I'm another one of the "been there, done that" crowd, back in 2002-2005 - and it was much easier then. I eventually sold for a small loss.

Rather than target the general public, try to find a couple of higher-end clients, and take care of them like they were your mother. It was those clients that ended up bringing in the most value.

Just my .02, and good luck, no matter what you do.