$2500 Line of Credit from Mutual aquaintance, are these numbers fair? Do you price out your own labor?

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

Projected Profits:$1500

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?


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