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ago when his start-up was low on capital Despondent after being unsuccessful at raising capital during a trip to Chicago, he boarded a plane to Las Vegas at O Hare Airport instead of to his home in Memphis and played blackjack, winning $30,000, which he used to save his company Entrepreneurs are risk takers because failure does not scare them As John Henry Peterman, the founder of the Kentucky-based J Peterman catalog, commonly known as the company that employed Elaine Benis on the hit television series Seinfeld, said, There is a great fear of failure in most people I never had that If failing at something destroys you, then you really have failed But if failing leads you to a new understanding, new knowledge, you have not If you don t make any mistakes, you re not doing it right 61 Opportunist Entrepreneurs are proactive by nature The difference between an entrepreneur and a nonentrepreneur is that the former does not hesitate to seize upon opportunities When entrepreneurs see an opportunity, they execute a plan to take advantage of it That disposition is in stark contrast to nonentrepreneurs, who may see something glittering at the bottom of a stream and say, Isn t that gold But instead of stopping and mining the gold, they simply keep paddling their boat62 An example of this type of opportunism is the story of Henry Kwahar, who owned a hot dog stand on the south side of Chicago in the early 1970s During one of the hottest days of August 1973, a refrigerated truck filled with frozen fish broke down in front of Henry s stand Rather than let the fish spoil, Henry, who had never sold fish before, offered to buy the entire stock at a very sharp discount The truck driver agreed, and that is how Dock s Great Fish Fast Food Restaurant began Henry named the restaurants after his father, Dock There are presently 27 Dock s restaurants in Chicago and Cleveland Sacrificer Every successful entrepreneur will acknowledge that success does not come without sacrifice The most common sacrifice that an
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entrepreneur makes is in terms of personal income, particularly during the initial stages of a company Almost all entrepreneurs must be willing to give up some amount of personal income to get a business started, either by committing their own resources or by taking a cut in pay One of Jeff Bezos s early investors said that the most convincing factor was that Bezos had given up a job at D E Shaw with a seven-figure annual salary to start Amazoncom The investor quoted, The fact that Bezos had left that kind of situation overwhelmed me It gave me a very, very powerful urge to get involved with this guy 63 In fact, capital providers, such as bankers and venture capitalists, want to see an entrepreneur earning a salary that is enough to live comfortably, but not too comfortably, during the buildup stage of the business Specifically, the entrepreneur s expected salary should be enough to cover her personal bills (eg, home mortgage, car payment, and so on), but not enough to permit personal savings of any significant magnitude This indicates to potential financial backers both the entrepreneur s level of commitment to the venture and her realism about the challenges that lie ahead A case in point: In 1996, a venture capitalist received a business plan from a team of three prospective entrepreneurs who wanted to start a national daily newspaper targeting middle-class minorities The idea seemed sound such a newspaper did not exist to meet the demands of a rapidly growing segment of the US population The request for start-up capital was rejected, however, as it was evident to the venture capitalist, upon reading the business plan, that the team did not understand this key notion of sacrificing personal income The three of them included in their projections starting salaries of nearly $400,000 each, comparable to the corporate salaries they were earning at the time! Such salaries put them in the top 1 percent of the highest-salaried people in the country The venture capitalist viewed this as a sure sign that these three businesspeople were not sincere entrepreneurs Business owners in general earn much less than what these three prospective entrepreneurs expected Even 10 years after those entrepreneurs proposed combined compensation of over $12 million, according to Salarycom s survey of small businesses in 2006, the average base salary for CEOs of small businesses was $258,000 (see Table 2-4 )64 For entrepreneurs in information technology and health sciences,
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