Whether you run an established small business or are just starting out, web hosting services will be needed at some stage, unless you plan on hosting your website on a (large and expensive) server yourself.
Web hosting platforms will normally offer a few different packages including shared hosting and dedicated servers. For startups and small businesses, shared hosting is the most fitting option as cost remains low with decent reliability and customer service.
Shared hosting means you will share a server with a variety of sites and while some argue that this can slow down site speed, for small businesses with relatively simple and clean websites, this shouldn’t be a major concern.
Dedicated hosting refers to renting your own physical server and should really be reserved for larger enterprises with high traffic levels. So while this will be suitable for your business one day (all being well) there really is no need to opt for an expensive dedicated server until you’re ready.