If you are lack in knowledge of what actually needed for your website, then it is better to use cheap shared hosting package. If you are webmasters, then you would clear of what type of hosting is good for your website. Hosting is important for a business. For all newly starting website, shared web hosting is best when compare with VPS hosting. This helps you to first identify the number of visitors per day and needed amount of storage space. If you are launching a professional business website, then it will need only a very less space but whereas if you are letting the customers to book or buy something of your products or services online, then you need to install ecommerce. Depends on the number of customers for your business, the bandwidth may vary. Similarly, if your site is full of picture to describe the quality of business products or services then it may sometimes need high bandwidth even for the average number of users.
At these times, it is recommended to upgrade your website hosting plan to VPS. Otherwise, your site will get inaccessible or lead to slow loading in the browser temporarily as it is a shared web hosting plan. If it is VPS webhosting plan, then you need not worry of the data storage expansion and the bandwidth. However, make your own choice while choosing VPS because some companies who are good in providing shared hosting solution may not good in providing VPS, but using the free domain transfer facility you can shift to another best VPS web host.