Thanks for all the answers so far - much much appreciated. A few points I should clear up.
1) I do outsource translation. I work closely with a group of freelance translators who I interviewed back in January when I started up. I wish I could speak 20 languages, but I don't ;-)
2) Running a business unfortunately isn't just Project Management and Project QA. There's also finances, marketing, the website to maintain. Certain things can be outsourced, and I have for the smaller jobs.
3) I am happy to make some investments to improve long term returns. Indeed, I didn't pay myself last month to pay for a few improvements. Not ideal when you have rent, but sometimes sacrifices have to be made and I'm ok with that.
4) After reading your comments I'm a little less nervous about increasing prices. I worry, of course I do, that'll I'll be too expensive. Pricing is definitely something I am learning, it isn't easy.
What do you guys think about partnering with someone? Perhaps taking on a junior partner so we can work together towards common aim of Applingua… Is this ever a good idea?