One thing I had to realize very early on is that what you think may not be the best website ever could certainly be exactly what somebody is looking for.
Having said that, it’s important to continue practicing on your own. I started out by looking at local companies’ websites and then simply upgrading them. It wasn’t an actual project (as in, they didn’t hire me or anything), it was just simply a way for me to practice and have something to measure up against. Was my redesign worth it? Does it look better? Is the functionality improved?
If people ask you to do something for them, by all means take it on. It’ll improve your skills tremendously when it’s not just yourself that you have to let down!
What everyone said is absolutely correct. In your free time practice coding as much as you can :D Try to innovate with your code.. try new things.. in this process you will discover your weak points, improve them automatically and also get to learn loads of stuffs which will give you the confidence to work on any project that comes your way :)
Then a time will come when you will be looking for more challenging projects lol ;)