Many consulting firms, VARs, integrators, solution providers, and managed service providers waste a lot of time and money trying to market their services to prospects that are simply too small.
A good general rule of thumb...
If your prospects aren't big enough to need and afford a real dedicated server, they're probably not big enough to service profitably.
Remember, there's no law that says you have to accept every potential customer that comes your way. After all, it's your business. Don't let it accientally become a "non profit".