I've been self-employed for almost 3 years. I left my last W2 position with *nothing* in the pipeline. By luck, I got a call the next day to do some sub-contracting work. That paid the bills for about 18 months and then it started to trickle off.

It was at that point when I realized that I really need to worry about keeping the pipeline full and that I couldn't rely on a single source of income. I started hitting up friends, acquaintances and former bosses. Before long I had scored a couple of good gigs.

I now try to spend some amount of time each week on making sure the pipeline is going to remain full. I joined a professional association so I could make contacts outside of my local area.

During my short time as a self-employed consultant, I have managed to build a house, buy a new SUV, bring a second child into the world and lead a relatively stress-free life. I will say that when times are lean (November - January have been consistently slow times), I think about trying to find another W2 job. As time goes by, I have learned to make sure extra $$$ is sitting in the bank.

As someone else mentioned, a good accountant is great resource to have. I'm always getting his advice on things like incorporating, expenses, etc.

So, to find clients, I'd recommend letting friends, family, former professors, old bosses, etc. know that you're looking to become an indepedent. Get your name in front of people...make sure they remember you the next time a project comes up and they need help.

Also...I make it a rule to NOT work on hardware issues. I'm a software guy...if someone needs their printer fixed, they can find someone else (or better yet, let me find someone for them).

Hope that helps.

mike