Deepak left a comment on my blog and gave a link to his post.
In my opinion this is one of the most down to earth explanations of the logistics of turning entrepreneur in India that I have seen. He even gives the working of how much tax can you save if you turn entrepreneur (heh, assuming that you make enough through consulting as your salaried job). As he says:
In terms of income, Salaried people pay taxes and then spend money. Freelancers spend money and pay taxes on the remaining amount.
On a related note Jim Durbin weighs the pros and cons of working from home