Marketing Sweat Equity: Getting Your Startup’s First Sales—Without Spending Money on Consultants and PR

Up and Running

After all, sweat equity can make up for a trim marketing budget, but it would be hard to make up for cuts in product development and customer service without sacrificing customer experience.

What is the ratio of equity received for sweat equity vs. cash investment in a new venture?

Gust

There is no specific ratio between “sweat equity” and cash in a venture, and that’s actually not a good way to think about the issue. A better way to think about this is to separate two aspects of the “sweat” that one puts into a new venture. You might have created that value by slaving 18 hours a day, seven days a week for five years (in which case the value of the sweat equity is $8.70

What is Sweat Equity Worth?

www.entrepreneur.com

What is Sweat Equity Worth? Determining how to value sweat equity is key when negotiating with investors and employees. Entrepreneurs often ask me how to value the sweat equity invested in their startup. But over the years, I have come to realize that sweat equity isn't the same thing as market value for your startup. As the business owner, you should be the expert on valuing sweat equity, not your investors, accountants or lawyers.

Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

Piercing the Corporate Veil – Sweat Equity Consulting. But much like becoming a co-founder, getting paid sweat equity is essentially becoming an investor in the company. I was once asked to sign a one year non-compete agreement as a sweat equity consultant.

Building a sweat equity team

discuss.joelonsoftware.com

Part 1: Recruiting Part 2: Team Members Part 3: Environment Part 4: Schedules Part 5: Lifecycle Part 6: Design Moderators: Eric Sink SourceGear Bob Walsh Founder, StartupToDo.com Author of The Web Startup Success Guide and Micro-ISV: From Vision To Reality Patrick McKenzie Bingo Card Creator Andy Brice Successful Software Building a sweat equity team This post ends with this question: What are some good sources of information (books, forums, etc.)

New on TNW Guides – How to Use Sweat Equity to Fund Your Startup [Sale Price]

The Next Web

Chances are, if you’ve not yet been in a position where you have to talk about splitting equity, you will be. How to Use Sweat Equity to Fund Your Startup is the newest release on TNW Guides.

How to Hire for Sweat Equity…

www.drowningamerican.com

Next → How to Hire for Sweat Equity…. That being said the following is available to the right candidate: • 3-5% equity in the company (based on experience). • $50,000/year salary once we obtain funding (target: January, 2010). And now I’m trying to get my own team, and have them work for equity. Pingback: How we Hire for Sweat Equity (Part 2)… « Drowning American. Drowning American. Musings on Life and the American Dream. Search.

Places to Find Developers in Exchange for Sweat Equity

www.askthevc.com

startupcto

Equity-Only CTO and Equity-Only Developers

SoCal CTO

Understand where they were in terms of being able to pay or was this equity-only (sweat equity only). And he was still in the process of raising additional capital, so it was equity only. However, when I told him that the level of engagement required from me and the fact that equity-only development was required, he seemed to be a bit offended. There are cases where I will do equity-only deals.

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SmartHost of New York Wins the StartupBus 2014 Competition

SiliconHills

Sweat equity is the best startup capital” – Mark Cuban A banner bearing Cuban’s quote hung on the wall at Rackspace’s event center Thursday as it hosted its third annual StartupBus event featuring teams from all over the country and Mexico. All of the StartupBus participants riding on the eight buses for the past 72 […] The post SmartHost of New York Wins the StartupBus 2014 Competition appeared first on SiliconHills. San Antonio Rackspace SmartHost StartupBus

Equity for Early Employees in Early Stage Startups

SoCal CTO

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept.

How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

Editor’s note: Understanding how to divide founder equity at a startup can be tricky, even to the point of reaching emotional riffs between founders. Below, Lee Hower offers advice for approaching these equity discussions objectively and properly.

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How To Enjoy Your Business Dream As Well As The Work

Startup Professionals Musings

That’s why all those so-called million dollar ideas I hear about as an investor don’t get me excited, and entrepreneurs find that working twenty hours a day often generates nothing more than sweat, instead of the desired sweat equity.

5 Elements Of Success Every Startup Should Celebrate

Startup Professionals Musings

That’s why all those so-called million dollar ideas I hear about as an investor don’t get me excited, and entrepreneurs find that working twenty hours a day often generates nothing more than sweat, instead of the desired sweat equity.

Carving Out Your Own Slice Of Heaven: 6 Ideas For Budding Hospitality Entrepreneurs

YoungUpstarts

Commit to plowing as much sweat equity as you can muster into your eventual choice. As the old saying goes, you have to spend money to make money. How much money you have to spend is another matter.

5 Leadership Elements That Are Not Always About You

Startup Professionals Musings

You know how to bootstrap a business, build it from nothing, and burn sweat-equity for long hours to push your dreams to reality.

Tips To Value Your Startup

YoungUpstarts

You might as well have all your liquid assets and sweat equity in place but if you are unable to raise money for your business beyond the valuation which has been stated by your investors ($ 1.5 Startup valuation, under no circumstances, can be described as a simple affair.

5 Elements of Leadership You Can’t Succeed Without

Startup Professionals Musings

You know how to bootstrap a business, build it from nothing, and burn sweat-equity for long hours to push your dreams to reality.

A Young Beginner’s Guide To Making Money Flipping Houses

YoungUpstarts

A lot of the profits from house flipping stem from sweat equity. Property is intrinsically linked to wealth. There’s a good chance most of your family’s net worth stems from the residential home.

Inspiration Without Perspiration is a Dull Startup

Startup Professionals Musings

Those at the other extreme don’t look up from the grindstone long enough to notice whether all their work is producing sweat equity or just sweat. I’m fully convinced that both inspiration and perspiration are always required in a startup.

How Entrepreneurs Attract Friends, Family And Fools

Startup Professionals Musings

The average amount per startup was $23,000, usually in the form of a convertible loan, rather than an equity investment. Rather than set a fixed repayment schedule, tie investment payoffs to a percentage of new product revenue, or a plan to convert the debt to equity.

7 Partner Relationships That Can Kill A Good Startup

Startup Professionals Musings

I’ll put in the money, if you put in the sweat equity.” Most entrepreneurs who start a company alone soon come to the conclusion that two heads are better than one – someone to share the workload, the hard decisions, and the costs.

Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Sometimes co-founders put off the equity split question for some time. Both of these are typically reflected in the founder equity split.

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8 Questions Before You Join Or Invest In A Startup

Startup Professionals Musings

Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.

Most Entrepreneurs Need to be Inspired to Perspire

Startup Professionals Musings

Those at the other extreme don’t look up from the grindstone long enough to notice whether all their work is producing sweat equity or just sweat. I’m fully convinced that both inspiration and perspiration are always required in a startup.

5 Ways Entrepreneurs Help Others Succeed and Win

Startup Professionals Musings

You know how to bootstrap a business, build it from nothing, and burn sweat-equity for long hours to push your dreams to reality.

10 Answers That Make Your Startup Plan Investable

Startup Professionals Musings

How big is the funding request, and how much equity will you give? Quantify founder investments, both cash and sweat-equity.

Finding a Technical Cofounder for Your Startup

SoCal CTO

Here are a few perspectives on the topic of finding technical cofounders: In Building a sweat equity team , Joel on Software tells us: You simply need to network. I've recently received several emails from people looking for a technical cofounder for their startup.

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7 Attributes of An Entrepreneur's Startup Dream Team

Startup Professionals Musings

Investors all know that the startup road is long and hard, so they look for people who have put and will continue to put “skin in the game” -- time, sweat equity, and money.

Bootstrapping Is Much More Fun Than Investors

Startup Professionals Musings

With one of the new free tools and a dose of sweat equity, you can create a website for almost nothing -- and you are on your way to success with ecommerce, your latest invention or personal services. Use your equity for key executives and business partners.

Building the right founding team

The Equity Kicker

Most commonly that’s done through freelance arrangements and sweat equity deals. This post will be one of the articles on ThePathForward.io when we have the formal launch on September 9th.

Validate The Pedigree Of A Startup Before You Jump

Startup Professionals Musings

Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.

10 Entrepreneur Comments That Kill Investor Deals

Startup Professionals Musings

Investors expect the founder and other principals to have “skin in the game,” over and above “sweat equity.” Lack of confidence in your self, your product, and your startup is a surefire recipe for disaster.

How Well Versed Are You In Startup Investor Jargon?

Startup Professionals Musings

Sweat equity. This unpaid work component is sized in dollars, added to any funds contributed, to represent the total contribution of a founding partner and converted to an equity ownership percentage in a new startup. Equity crowdfunding.

The Smartest Entrepreneurs Bootstrap Their Startup

Startup Professionals Musings

Yet, according to many sources , over 90 percent of all businesses are started and grown with no equity financing, and many others would have been better off without it. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals.

8 Key Questions To Expect In Investor Due Diligence

Startup Professionals Musings

The intent of this question is to determine the level of commitment of founders, both cash and “sweat equity,” and how much others have already invested into this plan.

6 Tips for Mothers on Starting a Business

Up and Running

While it’s to be expected that you’re going to put a lot of time and sweat equity into starting a business, make sure you’re also carving out time for your family. Starting a business can be an exciting and sometimes intimidating prospect, especially when you’re a mom.

Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Sometimes co-founders put off the equity split question for some time. Both of these are typically reflected in the founder equity split.

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7 Startup Co-Founders To Avoid And Keep Your Sanity

Startup Professionals Musings

I’ll put in the money, if you put in the sweat equity.” Most entrepreneurs who start a company alone soon come to the conclusion that two heads are better than one – someone to share the workload, the hard decisions, and the costs.

The Smartest Entrepreneurs Bootstrap Their Startup

Gust

Yet, according to many sources , over 90 percent of all businesses are started and grown with no equity financing, and many others would have been better off without it. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals.

10 Entrepreneur Milestones That Make Funding Easy

Startup Professionals Musings

Investors like to see that you have committed personal funds as well as “sweat equity,” and they like to see real progress at this level. Every investor expects to see some business traction, both before and after a funding event.

8 Questions Investors Use to Bypass Startup Hype

Startup Professionals Musings

The intent of this question is to determine the level of commitment of founders, both cash and “sweat equity,” and how much others have already invested into this plan.

8 Key Questions To Expect In Investor Due Diligence

Gust

The intent of this question is to determine the level of commitment of founders, both cash and “sweat equity,” and how much others have already invested into this plan. Image via LeadChangeGroup.com.