you got to be sure about what your aim is and how much you want to put in, contracting is a safer option. If you are really thinking of getting in to business, be sure you have passion for it, doing business is way more than doing coding and showing output. as said earlier make sure you have some sure source of income. anyways, wish u all the best, I started my own firm after I quit from development job, Now I'm happy that I took that decision. Regards, Sagar