I had a children's portrait business for several years. Some things to keep in mind:
#1 You are asking this question on a budget board. There are alot of responses saying they look for inexpensive photographers, who include a CD in the session. I do understand that, it is a "budget" answer. The thing you need to look at as a business owner though, is that going to fit your business plan? Big retailers undercut the little guy in price because they have volume. As an independant photographer, you are not going to even come close to
Walmart/Picture People/Penney's photography studios. You need to focus on the difference in PRODUCT that you are offering for that extra money. (No offense to anyone looking for "a deal", but an owner has to look at things differently.) You're factoring time to get to a shoot (or set up, if you're doing at home), take the pictures, edit the pictures, post them/print them however you're doing proofs, take orders, then order them yourself, deliver.... Don't underestimate the time you will be putting into each order.
#2 If you read #1, saw "business plan", and kept right on reading- stop. It sounds like you're proposing a small scale, see how it grows sort of thing. Great, but you should still have a business plan and know what you need to fill out in terms of accounting and what taxes to collect, who to report what to, etc. Your first stop should be the SCORE website (score.org). This is a group of mentors who provide free advice to those starting out in business. They have seminars and places you can call for help- use it! Local folks in your area can maybe even give you ideas for marketing in your town.
#3 Don't jump in as an amateur. I don't mean that as an insult, but if you don't have a plan and think things out ahead of time, you're going to make things tough on yourself. Sure, sounds great to offer up "I'm just starting out, so I'll take your pics for $10 {or whatever} and give you a CD". That person tells 10 friends, great! But that strategy has lured in 10 people who want to pay $10 and get a super deal. Frankly (and I mean NO insult to budget board shoppers! I am one myself

) you want to be thinking about deals that are luring in folks who want to spend $200+. It's a totally different clientele, you need to market on that level. (Unless you want to spend a couple hours + editing time and display time, to make $10 a pop.... Didn't think so!)
#4 a great resource is ilovephotography.com. There is a free beginner's forum that is strictly talk about photography and technique. Post pictures, get some feedback. You may be used to hearing everyone around you saying how great your pics are and you may get feedback that you don't like on ilp. Listen to it anyway and see what they are saying! (There are some GREAT people on there!) It's invaluable and free advice!
You can also apply for their prePro forums, you have to have a website or blog with consistantly good images to be accepted. (I'll be blunt, if you're not accepted, you should work on your skills some more before hanging out a shingle.) That's $55 for 6 months but entirely worth it for the exposure (pun intended!) to photog pros as far as how they do their jobs and run their business. Lots of folks from around the world who share what works and doesn't work for them.
#5 Two big warnings. First, doing something you love for money, can make you not love it any more. It's a job, and who ever likes their job?

Second, just because you're a good photographer, does not mean you're a good candidate for a photography
business. The joy I got from taking pics and interacting with kids all day long was far outweighed by the bookeeping and needing to push sales. (I was so happy with the pictures, the parents loved them so, I just wanted to say, here, take them, enjoy! lol) This is the primary reason that I no longer do it. I am MUCH happier working elsewhere, taking pics when I want of what I want, and enjoying them.
Wow, this is way longer than I intended!
Good luck, but mostly think through what you're doing- besides just "how do I get more customers."