Examples of sweat equity in a Sentence
He's built up a lot of sweat equity in his house.
He put countless hours of sweat equity into that old house.
Recent Examples of sweat equity from the Web
Some drug users have racked up some sweat equity with do-it-yourself projects, sawing a cutout in a room's floorboard and covering with an area rug.
The cost then was $98,000 including $15,000 of the owner's sweat equity ($186 cost per square foot).
The $90 kit from Paint Scratch was better for larger chips but required a tremendous amount of sweat equity, extra materials and the learning curve was steep.
Forget their sweat equity and their cultural contributions - the music and food, the art and dance.
Fanatics owner and 76ers co-owner Michael Rubin has done more than provide lip service, investing time, money and sweat equity in helping his friend escape an untoward situation.
The space runs on member dues and their sweat equity — the founding members imagined, painted and decorated the 3,800-square-foot space themselves.
Habitat for Humanity, a nonprofit that builds homes for low-income people with volunteer labor and homeowners’ sweat equity, recently announced plans to build 35 homes made from four containers each in McKinney, Texas, north of Dallas.
The Jags’ road to the conference-championship game was plowed in the sweat equity of its defense.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'sweat equity.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Financial Definition of SWEAT EQUITY
What It Is
Sweat equity is the time and effort that people contribute to a project.
How It Works
Sweat equity is used to describe the non-financial investment that people contribute to the development of a project such as a start-up business. For example, sweat equity is counted from the founders of the company, as well as advisors and board members.
In many situations where some members of a partnership are contributing their money and others are spending time, the partnership may be composed of cash and non-cash (or sweat equity). Ultimately, sweat equity is rewarded the same as cash equity through a distribution of stock or other forms of equity in a start-up venture.
Sweat equity can also be considered literal. For example, a homeowner may spend time fixing, repairing, and renovating their home. The value of their efforts is considered sweat equity and adds to the value of the home.
Why It Matters
Sweat equity is important to the successful start-up of a new venture, especially when cash is in short supply. However, it is important to value sweat equity carefully. In early stages, it is easy to overvalue it, offering stock in exchange for effort. However, over time, such trades can become very expensive and erode the equity available to follow-on investors. Sweat equity should be measured in terms of the long term value of the effort, the long term commitment of the participants, and the value-added by the participants to the overall goals of the venture.
SWEAT EQUITY Defined for English Language Learners
Definition of sweat equity for English Language Learners
: value in a property, business, etc., that results from the work that a person does to improve it; also : the work itself
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