I work for WMD^2. It's just me and my boss. Several years ago he hired me at Forum/Access Oil Tools as a draftsman. A year later me, him (our chief engineer), and another engineer got laid off. He was doing consulting and engineering on the side for a little while, so he took it as a sign to go ahead and go forth with his private consulting with full force.
He got an office area in his father in law's building. I was doing work for him on the side for a few months till he could organize things to be able to offer me a package for full time work. When we got laid off, the economy was prolly at it's lowest and it wigged me the f out.
He finally came to me with an offer that I couldn't turn down. The only downside I could find was making sure he'd have the work to keep us going and man, he's got more than enough work. It's basically just me and him and I love it. It's so relaxed, yet we get a lot of work done. It's nice to be respected and not have to have someone breathing down your neck to get work out. I chill a bunch, but I get stuff done when it comes to crunch time. If something needs to go into overtime to get it done, I have no problems doing it.
It's made me realize that I wouldn't want to start anything myself. I've got my dye website up and running, but I'm not near it being complete or anything. But after seeing all the stuff he goes thru, it makes me not want to open something up that's an all out business that I would have to rely on for my paychecks. He's had to go thru several customers not wanting to pay, and the legal process with that.... And setting up 401K, insurance... All that jazz. It's a lot of stuff to know and learn about. But he's figured 99% of it out. But charging engineering prices, I can see how he can thrive on doing this for a living. We charge hourly, and his contracts state in writing that the customer pays for all hours billed.
Anyways, that's my tid bit of information.