[andrewmcwatters]

Hi, it seems to me that you're not charging enough. That's just enough for yourself, and not really enough for a small dev shop. I'd like to hear other people's experiences from HN, but in my opinion, you should have some capital to pay for another engineer as a part of your small business.

I wouldn't "run and gun" with contracts, because as soon as you've got an employee and it's not just yourself (or at least a co-founding partner) you're not just responsible for delivering solutions to clients, you're responsible for supporting employees.

I'd continue to do what you're doing, raising prices until you've saved up capital, bring on an employee and start raising prices to make a small development firm economically feasible.