Many desirable domain names are already assigned and users must search for other acceptable names, using Web-based search features, or WHOIS and dig operating system tools. Many registrars have implemented domain name suggestion tools which search domain name databases and suggest available alternative domain names related to keywords provided by the user.
The server where you bought the domain probably offers hosting services but usually at a cost. If you want to do it for free, have your domain redirected to whatever free web service you decide to use for your website. Remember, free sites are limited in the number of pages and can have a lot of ads. On the other hand, hosting your own website as in Method 2 above, or having your site hosted where you bought and keep the domain, allows you to pretty much create as many pages as you want, without any advertising you don't put up for yourself.
If you're not sure of the type of hosting your business needs, you might want to start small, with shared Web hosting. You can always graduate to a more robust, feature-rich package of, say, VPS hosting or even dedicated hosting in the future. Unfortunately, some hosts don't offer all hosting types. Consider how much you expect to grow your website, and how soon, before you commit to anything longer than a one-year plan. It's worth spending the time up front to make sure that the host you select with is able to provide the growth you envision for your site, as switching web hosting providers midstream is not a trivial undertaking.
Some domain name registries, often called network information centers (NIC), also function as registrars to end-users. The major generic top-level domain registries, such as for the com, net, org, info domains and others, use a registry-registrar model consisting of hundreds of domain name registrars (see lists at ICANN or VeriSign). In this method of management, the registry only manages the domain name database and the relationship with the registrars. The registrants (users of a domain name) are customers of the registrar, in some cases through additional layers of resellers.
Many services offer so-called unlimited or unmetered service for whatever amount of bandwidth, disk storage and sites you use. It's important to understand that most terms of service actually do limit the definition of "unlimited" to what's considered reasonable use. The bottom line is simple: if you're building a pretty basic website, unlimited means you don't need to worry. But if you're trying to do something excessive (or illegal, immoral or fattening), the fine print in the terms of service will trigger, and you'll either be asked to spend more or go elsewhere.