Should I give up?
lsc: I know little of your market;   I target SysAdmins.  But I went 4 years (and one Ross Perot)  before my company became profitable.   I supported it and myself through part-time consulting.The big thing is to present a decisive face to the world. My 'Ross Perot'  cost me another two years or so, I think.As for 'stay or quit,' well, when you are small, it doesn't take much to make a huge difference.  That article about me on hn and reddit the other month?  that took me from 'breaking even if my time is free' to the point where prgmr.com revenue is greater than my contracting revenue.Me, I stayed in it for so long in spite of my losses because this is what I like doing, and what I'm good at.
Perhaps more importantly, I believe I have a chance of holding my own against the competition.Uh, but yeah, if you do decide to stick with it, you might want to think about a part-time contracting gig.