I delegated several things already, but never the development. I like to keep my coding skills sharp so that I keep value as a developer, you might need the skills to pay the bills when your business doesn't go too well.
If you want a contrary viewpoint, Aymeric fellow HNer wrote that some time ago, you might find it interesting:
http://aymeric.gaurat.net/2011/i-am-a-developer-yet-i-outsou...
Quality is possible without cost, but the speed at which you will acquire those developers is low. You will need to hunt from the bargain bin of inexperienced and/or overseas developers. You will choose poorly and you have to be ok with that. Create a process where you can let go the developers who don't work out and retain those who do easily. Parallelize this process if possible. Your local college, local programming user groups, and online contract work websites may be good places to stat looking.
I'm told that I must focus on the business side of things, and outsource (some parts of) development. Being a programmer myself, I always think that "good programmers are expensive, and cheap programmers are not good", so it hinders me from hiring my peers.
How do you guys handle this situation? Esp. if you're perfectionist (I believe many programmers are).