tl;dr: The work was varied and interesting. We were trading time for money. We feared firing customers for lack of cash flow. There is too much competition, and

tl;dr: The work was varied and interesting. We were trading time for money. We feared firing customers for lack of cash flow. There is too much competition, and margins are thin. We failed to expand our market. We took almost any work, so felt we could not control our wider contribution. We started to create a product, but could not stay away from getting paid for our time. Eventually we cut the web design work, as the margins were getting even tighter. Now we have two products, which we are proud of, but don't know if they will make a successful business. Sounds a little to me like the story of Pyra Labs, and many others that I can't recall.