Re: contracting work
You're in a lot better position than I was when I started out, and things have worked out pretty well for me. I'm a one-man shop, so I have no experience with having employees.
Before you do anything, you have to decide what kind of operation you want to be and what you are capable of doing. There aren't many ECs that try to be all things to all people, so you'll probably have to settle on a niche where you can be competitive. Smaller shops are better than larger shops for some things, and vice versa. As long as you don't waste your time chasing jobs where you aren't competitive, you should do OK.
Once you have that figured out, the main thing you need to do is get your name out there. Word of mouth is great (probably the best, actually), but it takes time to build that up. In the meantime, you need to look at advertising. What works is going to vary from place to place. You might want to ask everyone you know if they were planning on hiring an EC and were unable to find one through word of mouth, how would they go about finding one? That would give you a good idea as to what kinds of advertising are worthwhile. You generally won't be able to trust anyone involved in selling you ad space, though. They want your money and will always tell you how advertising in their publication is definitely the best way to go. I've been burned a few times by such ads.
But you'll probably have to do some experimenting and see what works. I've found that it's good to advertise from a variety of angles. I have a yellow pages ad, and an ad that runs in a couple of neighborhood newspapers. Put up some business cards on bulletin boards at various places; it's resulted in a few jobs for me. More and more is being done on the Internet these days, so you might think about putting up a Website.
Another thing that really helped me was when my friends broadcast my name far and wide through their networks. That resulted in a lot of good jobs for me. Ask your friends to do the same.