Since this trade is hard as nails, you need to beat your competitors on worth and good offers ($0 for the primary 6 months of internet hosting, free .com area if you happen to purchase a $5 / 12 months plan, and so forth..)
Create just a few compelling banners with these provides, after which promote the crap out of them all over the place the place there are folks enthusiastic about internet hosting / domains (related boards, social media teams, and so forth…)
If in case you have the cash you’ll be able to delve into PPC too… and even promote on boards like BHW, why not? This discussion board is choke-full of individuals enthusiastic about internet hosting and domains, and if you happen to’re critical about your online business and may supply high quality service at aggressive costs I feel you’ll be able to land just a few purchasers to maintain you going.
Up till final 12 months I’ve all the time saved a watch on the internet hosting part of BHW, and I even bought internet hosting from 2 completely different BHW sellers through the years, so there’s a truthful probability so that you can succeed with boards if you happen to put the hassle and cash in… I feel…
Anyway, to (lastly lol) reply your query: you construct belief by providing high quality stuff at affordable costs. In case your preliminary purchasers see no causes to maneuver elsewhere they will acquire belief in you, altering internet hosting suppliers isn’t enjoyable, and most of the people would like not having to do that if their present hoster meets all (or not less than most) of their wants…
Personally, I’d make an inventory of my high 10-20 rivals, jot down on a bit of paper essentially the most enticing of their promoting factors, after which attempt to beat these factors by a 5-10% margin, regardless of if it is the worth, uptime speeds, backups, storage / bandwidth, and so forth… Simply notice all of them down and see the place you’ll be able to beat them at, after which craft your adverts / banners to replicate these promoting factors and begin promoting like loopy. And if you happen to handle to maintain these factors legitimate for not less than the following 5-10 years with out going bankrupt folks will start trusting you and presumably even unfold the phrase about your online business, which is able to clearly acquire you extra clients without spending a dime principally… till your rivals take discover of this and can both attempt to purchase you out, or destroy you. However I suppose that is the character of competitiveness, proper? 
I am unable to reply to your different questions as I do not know the solutions (as I stated, I’ve by no means owned a internet hosting enterprise, so I am going to chorus from giving suggestions that may not work), however hopefully another person may help you with these…