My main advise is to focus locally in the beginning. We actually moved to LA from Santa Babara in the beginning so we could have a local presence and the difference in sales is probably why we have been able to afford to grow so fast.
So try a reseller plan then put up some fliers! There is probably a couple hundred clients available right now that you get to use your hosting locally.
But as far as going full blown with colo and staff, it's not as easy as it used to be. Prices are lower and people only expect the best now.
Do you live in LA I think we are hiring right now and the right performer can get into profit share and stock in the company.
http://www.dwhs.com