Hacker News Books

It sounds like there is a book here somebody can possible recommend. Some of my own experience:

a) What are your current clients getting you to do? If you are doing lots of cheap web dev projects, you might not be able to scale reliably since it is a crowded market, even though you can survive as a small company with a very small slice of the market.
b) Are you able to specialise or otherwise increase the quality/size of your work to be more suited to people with more money who wil pay more for that better work? This will separate you from the crowd - there are plenty of people who can make a decent website template for $100 online but not many who can provide real expertise for that kind of money
c) The type of work you do will dicatate who you need and what kind of company structure will work. If you can setup so that you have a larger number of less skilled/cheaper employees and a small number of people who can do the difficult bit then you can get good bandwidth. If you are a specialist, you might be better charging much more money and only employing a small number of really expert developers.
d) Recruitment is a whole other book. It is hard to know someone's ability until you get them to work for you. Start with contract work with a view to permanent if they prove themselves with good communication, good work ethic, high quality work etc.
e) In terms of locations, there is no trick to finding cheap good developers otherwise everyone would do it. Depending on your location (US?) Eastern Europe would probably be the best cultural fit for a reasonbale rate. South America, Vietnam, Thailand might be less cultural fit but a bit cheaper. Some other countries like India and Pakistan might be even cheaper but the cultural divide is wider and you might struggle more with communicating with each other.