I enjoyed reading this morning in the Des Moines Register about two fellow Simpson College grads that have managed to build a successful Web site design business without incurring business debt. Andy Priestley and Matt Mann started DWebware shortly after the dot-com bust and have grown their business steadily since that time.
You may also want to check out their blog. They have some helpful posts on how to improve your business online. I thought this post on Iowans Utilizing Internet Technology was particularly interesting.