You could probably get a dedicated server for around $100. If your hosting company is willing to transfer the site for you, going from VPS to dedicated really should not be a huge issue. But, if you can afford the dedicated server now I would suggest starting out with that and avoiding the nuisance of transferring and such later.
Most importantly though, do you have a plan to monetize the traffic so that you make some money to pay for the bandwidth? I have seen a couple friends try starting similar services and they never had a plan for making money, which meant they closed up pretty quick.
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