Hi everyone. I totally forgot about this thread, sorry to leave you hanging.
So the update is that by most accounts, this venture was a bust. I think it's a combination of 1. I'm not very good at marketing (that's not what I got into this business for), 2. I really don't enjoy running a business. The paperwork and officialdom of it was a total drag on morale and motivation. 3. I live in a VERY isolated place (pop.1200, no surrounding area business), and 4. There really isn't a market for b+w portraits here. Everyone wants Sears portraits (they really can't tell the difference, and they want COLOR), and they're so used to going out of town for things that it's just something else on the list. Hence, the $50 so I could compete, but it just isn't worth it.
Ironically enough, I did drum up a relatively booming design business. For some reason, everyone started coming to me for brochures and business cards once they figured out that I'm practically the only person in town that can do it. I also got commissioned to do some really cool installation projects. It turns out that I really like doing this kind of work, the problem is that I don't have the expertise to expand it. Design is a lot less stressful for me than portraiture because there's no pressure to get the shot. It happened at least once that I had to reshoot, and it was the crappiest feeling ever. With design, the client gives me an idea of what they want, I create it, they come look at it, and if they like it, great, if not, I can just revise it. Much much less stressful.
So, the long and the short of it is that I still absolutely love portraiture, but not for pay. I was consistently photographing on my own a part from the business, and looking back, my best work was not commissioned. It was convenient though to have a whole studio/darkroom set up to use whenever I wanted. For work, I really think I can make a go of it as a designer, and it's the kind of work that won't totally stress me out. For that reason, I'm headed to graduate school in the fall to study design (and photography), with a view toward getting a full time job as a designer, and continuing photography as an art practice.