This is a common problem with all contract work. With employment it hardly matters since the employer pays for all the work regardless. But with contract work it is a way clients may tray and get more for less. Simply charge the extra work by the hour. If there is any question about what is extra and what isn't, then charge the whole project by the hour.

I went through the exact same thing with my Squirrel model airplane project. Some projects just take time to incubate. In my case, I have been rewarded by keeping the project and it has allowed me to start new projects since I now have better command of my schedule. Micheal Garrity make a good point/question. What is limiting your income to 600/m with your project? How much work is invested and what is the ongoing requirement to make the 600/m?

Too much spending can kill a company. Companies evolve so sometimes money can speed up evolution. That's not killing, that's changing.

Competitors are your friend. Get to know your competition. Get to know your customers. Get to know their customers. Have a blog. Share information about you and your competitors.

Ask your customers what your differentiator is. They may tell you what it should be.

Don't look for clients. Showcase your products. Do it publicly and on the Web. Give your product away.

Don't have any veil to lift. Don't do "stealth" either. Earlier is better. Even before you start.

That's very smart. I was thinking of making a badge of some sort for my Squirrel Model Airplane project. I've launched the project but I was thinking that I could give away the product to people that put up the badge. I guess some sort of random process to figure out who wins the product.

You can probably figure out what warnings to put on the site without a lawyer. Even if you get a lawyer, you'll need to know what you want to be protected from in the first place. But if you attend some business socials where lawyers attend, you'll meet one that will advise you for free (sooner or later).

Don't do stealth. But delay any formal product launch or big announcement till you have all the validation stuff. (Customers, testimonial, infrastructure for support, ...)

No, I'm having wine and processed cheese.

You'll need customers before techmunch will be interested in talking about your product. These sites aren't about perspective products. Don't think going straight for the "hubs and authorities" is the answer. On the other hand, if your product is "kickass" why not get some smaller scale "connections" to look at it?