How To Succeed As An Entrepreneur -- Even If You're Not Superhuman

Starting your own business can be a ticket to the good life, where you decide when and where to work and set the rules. But some people struggle at it, because they aren’t prepared for the change in mindset they need to thrive.

How do you ensure you make a great living as an entrepreneur—so you can say goodbye to your day job permanently? I asked that question recently Rob Holdford, CEO of Wealth Management, Inc., in Little Rock, Ark., and a life coach who is author ofLIFEonomics: Living Free of Worry and Regret, a book about how to pursue your passions while keeping your finances healthy.

Holdford says the key is up-front planning. “A great life plan should result in people knowing they can spend the rest of their life doing what is truly important to them with the people who are truly important to them,” he says. I met him through a client who does business with him and, in our conversations, discovered that he walks his talk: He is also a talented electric guitarist who plays in local bands and at his church. Here is some advice I took away from an interview with him.

Build momentum. Dreaming of launching a business will only get you so far. You have to act on your vision at some point. “Figure out something that will force you into motion,” says Holdford. That could be attending networking events or, if you’re unemployed, taking an interim job that will get you back into the routine of working.Never let the law of inertia take hold. “If you sit home long enough, that inertia is almost impossible to overcome,” he says.

Don’t quit your day job. Start your business as a side gig first if you can and get clients lined up before you give notice to your boss. That way you’ll be able to accurately forecast cash flow and profits and determine if you can live on what you’ll earn, says Holdford. “The number one underestimated part of opening a business is client acquisition,” says Holdford. “The best way to make sure you’re going to be okay is to have business lined up.” (As I’ve mentioned in a previous post, the majority of small business owners rely on their business for their primary income only when their businesses hit the two- to five-year-old age range.)

Grab the mike. One of the best ways to win clients is through public speaking in your area of expertise. Holdford has been in business more than 25 years. When he first started out, he would give two talks a week about a change in the tax code at local businesses, where he offered to speak to their employees. “I would share stuff they would really benefit from,” he says. At each event, he’d hand out cards where attendees could check a box indicating if they wanted to learn more about how the changed tax code applied to their financial situation. Some of those who responded became clients. “That’s how we started this firm,” he says.  Approaches like this work for many entrepreneurs. In a recent survey, Manta, a social network for small businesses, found that for 65% of owners, their personal network of business contacts is one of their top three business assets.