Calculate Your Sweat Equity

  • Use sweat equity to compensate yourself when you can’t afford a market-based wage.
  • Sweat equity is the value you have created for your business through your unpaid work.
  • This concept helps you calculate your lost opportunity to earn market-based wages had you chosen to work elsewhere.
  • If you have outside investors, it gives you a way to balance the worth of your effort with the money they invested.

Sign Up for NextBigWhat Newsletter

Curated. Summarized. Important News. For free.

You May Also Like

Control your emotions and thoughts

Emotional intelligence is the ability to understand and manage your emotions in order to perform optimally. The first step in mastering your emotions is to increase your self-awareness so you…
View Post

Running out of energy

Overcommunicate with your cofounder – approach your cofounder relationship like a marriage (because it’ll drain you otherwise): Don’t start a relationship unless you really, really trust them Introduce vesting so…
View Post