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industries in which venture capital is prominent, the average compensation is $238,000 for founder CEOs and $290,000 for nonfounder CEOs65 According to the SEC, Bill Gates s 2001 annual salary, excluding bonuses, was only $616,677
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T A B L E 2-4
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Average Total Cash Compensation for CEOs of Companies with Fewer than 500 Employees
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Region Northeast South West Coast Midwest Mountain States
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Source: Salarycom, 2006
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Average Salary $545,000 $411,000 $430,000 $243,000 $109,000
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Another difficult sacrifice that successful entrepreneurs sometimes make is spending less time with their families For example, entrepreneur Alan Robbins, the owner of a 50-employee firm called Plastic Lumber Company, once said that he regretted not spending more time with his children during the beginning of his business, but he considered it a trade-off he had to make He argued, When you start a business like this you have to deny your family a certain level of attention 66 The demands of owning or building a business put considerable strains on an entrepreneur s time However, this doesn t mean that the entrepreneur must completely neglect his family or friends in order to run a successful business To do so in the name of entrepreneurship is called entremanureship ! When I owned my businesses, I didn t miss the nightly dinner with my family I didn t miss my kids birthday parties or baseball games I worked around them My two daughters are older now one in graduate business school at Harvard and the other recently graduating from Princeton but when I started my businesses they were ages eight and four I coached my younger daughter s Little League baseball team and her flag football team I would have coached the older one, too, but she d
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decided that perhaps it would be best for me to simply cheer from the stands I ve seen more of my kids games and events than any other parent I know Of course you re going to work long hours in the first couple of years to get your business going But one of the beautiful things about being your own boss is that, by and large, you re the one who determines which hours to work In addition to sitting on several boards of billion-dollar companies, I m also a director for several start-ups I tell these entrepreneurs, Go home, have dinner with the family, and read the kids a bedtime story Then get your butt back to work When Staples surveyed small-business owners (those with under 20 employees), 33 percent reported working while they eat dinner, 73 percent said that they worked during their last vacation, and over 75 percent reported working more than a 40-hour workweek67 The MasterCard Global Business Survey of 4,000 small-business owners found that the average US business manager works 52 hours per week This figure actually rises to 54 hours per week if you include all eight countries surveyed68 When Inc magazine surveyed the CEOs of its 500 fastestgrowing companies, 66 percent of them remember working at least 70 hours per week when they started their company, and 40 percent reported working more than 80 hours per week69 Ken Ryan, CEO of Airmax, told Inc, There were times when I slept on the floor by the phone so as not to miss a call The good news is that only 13 percent say that they now log more than 70 hours Trust me, it gets better You can make time to take your kids to the park, but nobody said starting a business was a walk in one Visionary Webster s Collegiate Dictionary defines a visionary as someone who is marked by foresight This is an appropriate characterization of most successful entrepreneurs They are able to anticipate future trends, identify opportunities, and visualize the actions needed to accomplish a desired goal They must then sell this vision to potential customers, financiers, and employees A couple of entrepreneurs who were great visionaries and made an impact on almost everyone s daily lives include
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