Basically I'm starting a side project selling/making something I know to be in high demand. Someone I know is interested in putting capital into the idea.
I offered a 50% share of profits, not counting my own labor in the costs.
$2500 Initial Investment for a 3-4 week estimated, conservative Return of $4000
My proposal and reasoning: 50/50 Split of Profits, as there is a high amount of labor involved from my end and the more labor I put into it the more money we save and make.
His proposal:%66/33, until principal is returned, as he assumes all the risk. Then 50% 50% Profit sharing from that point on.
The $2500 is mostly for material cost, and about ~1600 is easily liquidated. Does this matter when you take risk into account?