Basically, we did it successfully by taking it to extreme with no outside VC or angels. Profitable with millions in revenue. It CAN be done.
Here it is: http://news.ycombinator.com/item?id=295627
Don't get wrong-- bootstrapping a services company is a great accomplishment (my first company was a consulting firm-- I sold my interest in it when it was about your size)...
With a services company, you can be profitable tomorrow. When I spun mine up, I made two phone calls and had $95/hr work coming out of my ears (in 1997 FWIW). Voila-- bootstrapped! From that point on, it was just managing headcount and sales pipeline.
Of course, the downside is that services companies are rarely valued very highly when you sell them. And they don't scale very well... Recurring revenue is scarce and your a slave to your sales pipeline.