Sweat Equity and the Contribution Table
The Trap
Relying on a vague sense of fairness when talking about who has contributed what.
The Reframe
Make contribution concrete with a simple table, and track value invested rather than percentage. Percentage comes later, once the value is understood.
The Table
| Expenses Paid | Hours Invested | |
|---|---|---|
| Person A | ||
| Person B | ||
| Total |
Key Details
- Both parties need a shared, honest understanding of both columns before an equity conversation is productive.
- Run the same table as a forward-looking projection: what's needed from each person going forward. If the projection is imbalanced, that's the signal to explicitly renegotiate responsibilities (for example, "can I delegate X to you while I focus on Y") rather than just splitting equity based on the past.
- Fill it in together, not separately, so both sides are working from the same numbers.
Why It Works
It replaces competing impressions of who did what with one shared set of numbers, and the forward-looking version turns an uncomfortable fairness argument into a practical conversation about who takes on what.