Where do you find clients?
qeorge: I have a similar business, we're nearing our third year. We've found most of our clients through word of mouth and referrals, but don't let that discourage you. You'd be amazed how many people need web work and haven't taken action because hiring a web firm is so intimidating, and its hard to know if you're getting ripped off. Its like how finding a good, honest mechanic you trust is worth its weight in gold - web shops are the same way.Make sure to tell everyone you know what you do, and you'll find work. In the mean time, try craigslist. Its tough to get clients from craigslist but it can be done, and you'll get a lot of great experience winning clients competitively. In our early days, we landed a white-label development gig via craigslist that provided an invaluable source of steady income during that make-or-break time.For building your portfolio quickly, you've got 3 options as I see it:1) Make your own side projects and add those to your portfolio.2) Lower your rates for your initial clients. Be upfront that they're getting a great deal because you are just getting started, and charge full price for support contracts.3) Make a fantastic website for a local non-profit. You don't have to worry about "cheapening" yourself, and you'll almost certainly get some good PR out of it.  Most importantly, the boards of many non-profits are composed of business leaders in the community. You'll gain invaluable connections if you execute well.If you give free or discount work, its imperative that you treat it with the same respect as a fully priced client. Think of it as a marketing budget, and make sure its having the maximum impact.Most importantly, don't die. Figure out how much you can survive on, and skip the fancy office for now. Even if its slow, you will build momentum if you make a good product.