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. Managing a Business Sales and Marketing bootstrapping marketing marketing tools sales startup sweat equityAccessing capital to launch a business is brutal for entrepreneurs just starting out along the path.

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

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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.

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.)

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.

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. My point in writing this is not to call anyone out , but to offer my [flawed] perspective on things that scare me off of projects so that owners and sweat equity consultants can better avoid some misunderstandings of perspective. " So why put in sweat equity?

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 can you look at someone who comes on during year number two and say that they are entitled to anywhere near the same amount of equity as you have, after you’ve put blood, sweat and tears into your company? How to Use Sweat Equity to Fund Your Startup is the newest release on TNW Guides.

Places to Find Developers in Exchange for Sweat Equity

www.askthevc.com

startupcto

Balance Your Focus Between Passion And Perspiration

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. At the same time, you can never let up on the work and the sweat required for continuous innovation, exemplary customer satisfaction, and staying ahead of competitors: Marketing is a never-ending challenge.

This Is What You Can And Should Do When You Need Money

YoungUpstarts

Get Money With Home Equity Loans. A home equity loan gives someone money in exchange for the house as collateral. The amount of money available depends on the equity you’ve built. In fact, think of a home equity loan as a second mortgage.

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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8 Ways To Get Your Business Going Without Investors

Startup Professionals Musings

With one of the many new 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. Bootstrapping doesn’t mean that you don’t share equity. Investors seeking equity for cash typically want more control and cash-return quickly.

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

8 Questions You Should Ask Before You Join 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. Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology.

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. 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.

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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. Early Employee Equity is an Art I somewhat agree with Fred Wilson in Employee Equity: How Much? Equity Formulas While it's somewhat an art, there has been a lot written about how you can look at equity compensation.

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. At the same time, you can never let up on the work and the sweat required for continuous innovation, exemplary customer satisfaction, and staying ahead of competitors: Marketing is a never-ending challenge.

Why We Shouldn’t Be In Love With Startups 

ReadWriteStart

All while the majority of the economy is driven greatly by boring industries often owned by private equity, not venture capital. No, I prefer boring businesses and established companies that are not seeking their own sweat equity for services provided.

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. At the same time, you can never let up on the work and the sweat required for continuous innovation, exemplary customer satisfaction, and staying ahead of competitors: Marketing is a never-ending challenge.

7 Whirlwind New Venture Partner Marriages To Avoid

Startup Professionals Musings

I’ll put in the money, if you put in the sweat equity.” Image via Pixabay 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. In a moment of crisis, you may be tempted to take on the first person expressing interest as a co-founder. This would be a mistake, and could easily cost you your startup.

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. Many entrepreneurs forget that their success is more about helping other people than about personally becoming famous, or overcoming the odds and getting rich. A successful business has to satisfy customers with a strong team, by helping them solve problems, save money, or experience more pleasure.

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. There are literally dozens of low-cost business ideas available to entrepreneurs with a modicum of talent and ingenuity — reasonably low-hanging fruit that you can turn up in a matter of days or weeks. Starting a hospitality company is not such an idea.

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. Many entrepreneurs forget that their success is more about helping other people than about personally becoming famous, or overcoming the odds and getting rich. A successful business has to satisfy customers with a strong team, by helping them solve problems, save money, or experience more pleasure.

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. Businesses have made immense profits from repairing, selling, buying or renting out places to live. But could you actually make a decent profit flipping houses? Here’s what you need to know: Flipping. House flipping is a pretty simple business.

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. Across both the startups I’ve personally been involved in (PayPal and LinkedIn) and the startups in which I’ve been an investor, I’ve seen a broad range of co-founder equity splits. 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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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.

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. Yet many people seem to be stuck on one end or other of this equation – all perspiration with no dream, or all inspiration with no reality. Success is the right balance of both for fun and profit.

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. Entrepreneurs who are looking to attract investors need to develop and pitch a plan -- preferably written -- that answers every potential investor question about your startup before it is asked.

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. Of course, most startups ultimately need much more than this amount to scale the business, but some prior contribution from friends and family (as well as your own sweat equity) is normally expected as a qualification before professional investors will consider entering the game.

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. Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology.

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. Yet many people seem to be stuck on one end or other of this equation – all perspiration with no dream, or all inspiration with no reality. Success is the right balance of both for fun and profit.

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. In a moment of crisis, you may be tempted to take on the first person expressing interest as a co-founder. This would be a mistake, and could easily cost you your 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. Many entrepreneurs forget that their success is more about helping other people than about personally becoming famous, or overcoming the odds and getting rich. A successful business has to satisfy customers with a strong team, by helping them solve problems, save money, or experience more pleasure.

How to Finance Your Startup: Advice from 10 Entrepreneurs

Up and Running

Sweat Equity. “I One of the most important decisions a new business owner can make is how they’re going to finance their venture. .

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. Dream team startups rarely just happen -- they are the work of a diligent entrepreneur, who understands personal strengths and weaknesses and are not too proud to ask for help and offer a chunk of their startup equity in return.

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. Bootstrapping doesn’t mean that you don’t share equity. Investors seeking equity for cash typically want more control and cash-return quickly.

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. Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology.

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. But recent changes in the law, associated with the JOBS Act of 2012 , have made it possible to sell small chunks of ownership or equity to non-accredited investors -- regular people on the Internet.

Success is More Inspiration and Less Perspiration

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. There is no doubt that both inspiration and perspiration are always required in a startup.

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. Across both the startups I’ve personally been involved in (PayPal and LinkedIn) and the startups in which I’ve been an investor, I’ve seen a broad range of co-founder equity splits. 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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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. Too many founders are convinced they “need” equity financing, for the wrong reasons, as outlined in the book and supplemented with a bit of my own experience: Need employees and professional services.

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. If you really want to impress a startup founder as a potential employee, or you want to be a smart investor, you need to know the right questions to ask.

How Much Do SaaS Companies Spend on Their MVPs?

ConversionXL

Co-founder and CEO Kyle Wong, who was featured on Forbes’ 30 Under 30 List, says the company’s MVP was built using “sweat equity.” When the company morphed an earlier product and built Uberflip’s MVP in 2011, it cost them $300k, with no capital—and a lot of sweat equity.

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