>I'm interested to hear stories from consultants about when they realized the time was right to go out on their own. What were the major factors >in your decision? What would you have done differently? How did you approach it?

I was a "lone wolf" developer/network admin in a direct mail/marketing company of 25 employees. Over thr course of two years every piece of custom software was made by me. I knew their custom software could only be supported by a seasoned developer or high priced consultant if I left.
I found another part time gig at a different direct mail company. I proposed moving from full time to part time with the original company. They easily agreed.
I may be viewed as a "consultant" ,but I'm really just a software developer working part time for more than one company. It's not that much different from being an employee. One big difference: I have more than one source of income ,therefore, I do not have to view my customers like they are "god". If I don't like a particular situation I just leave. :)