LIforrelaxin -
You're overlooking one major overhead cost that all business owners have to deal with - insurance. If you're employing people, you have to pay workers' comp and FICA and all that jazz. If you're open to the public you have to carry certain liability insurances. If you serve alcohol, then you probably have to carry additional insurances and have to be inspected and have to meet certain code, etc.
Oh, I could go on.... but this is why I am self-employed and will never grow my business to have employees - I work on a contract basis ONLY.
When you get down to it, the only people making money are really the insurance companies - think about it...
