First, welcome to the family!
Second, I suggest just breathing this website for a month or so. Trust me, any question you may have about starting up is going to be answered somewhere.
I literally spend hours just listening to the podcasts. ALso pick up the "Open for Business" book the Sloan brothers put out (Free plug here...now do I get my free StartUp Nation cap?). Seriously, Follow the 10 steps and you will have the beginnings of an awesome business and it will help you more define the questions that you need to ask and that is where this community is most beneficial. Once you get ready to develop a website, there are designers in here that would love to help you, and once you get it up, run an ad in the marketplace section (plug # 2... Does this get me the matching T-shirt? Jeff? Rich? Joel? Heather?)
Again, welcome to the group and it won`t take long for you to get addicted.
CraigL, great post. It is important to understand the labor costs in COGS if you are supplying most of the labor, but probably shouldn`t be a big hang-up. I guess the theory would be that if you had to hire out the labor when volume picked up you could off-set that "additional" expense by realizing some economies of scale. Efficiency, supplier volume discounts, etc. I guess it would depend on what % of COGS is going to direct labor. Anything north of 20% would get my attention and I`d like to account for it up front in pricing the product. Raising prices later to account for new labor charges could be a fatal mistake, IMHO. If growth is the plan, then the business model needs to support market labor costs, or it will need to be retooled.