Need help doing partnershp w/ website startup!

[theBiz]

Hi, guys i recently purchased a domain name and came up with a business plan for a website. I have the design aspects made up, logo, basically all of the development has been thought through just need to be implemented.

I spoke with a developer who has done some excellent proven websites. The initial development for launch is about 150hrs at $15,000. The marketing of the site once development is completed will be $15,000 as well.
Here is my question:

I have a relative who has proposed a 50/50 partner in the company to fund the initial 30k. They bring nothing to the table besides capital. I would not do a 50/50 atleast a 49/50.
Does this seem to high? i was think a 35 percent ownership in the company for them. I would like to leave a remaining 15% for another investor incase the website starts to take off. I will be doing all of the work and managing everything. Am i being greedy? It seems to me that if everything works out i would be doing alot of work for 50 percent and if things catch on ill be dumping more than 30k in marketing anyway after some success. So if you think about it 30k is really not much at all so does 49 percent seem to high to give another person just to fund initial launch?

Thank you very much, appreciate the advice, i want to get working on this ASAP.

 

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[Jonleehacker]

The way to find out is to see how easy it is to find an alternative investor for the terms that are more comfortable for you.

If you find one easily then you know it is a good deal for your relative, if you don't find one easily, then don't tell your relative you were out shopping and grab the cash!

 

[theBiz]

hmm easier said than done, i wish there was an easier answer.

 

[neverfastenough]

Look into convertible debt.

What are the benefits of debt in a seed round? - Venture Hacks

 

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[fanocks2003]

Hi, guys i recently purchased a domain name and came up with a business plan for a website. I have the design aspects made up, logo, basically all of the development has been thought through just need to be implemented.

I spoke with a developer who has done some excellent proven websites. The initial development for launch is about 150hrs at $15,000. The marketing of the site once development is completed will be $15,000 as well.
Here is my question:

I have a relative who has proposed a 50/50 partner in the company to fund the initial 30k. They bring nothing to the table besides capital. I would not do a 50/50 atleast a 49/50.
Does this seem to high? i was think a 35 percent ownership in the company for them. I would like to leave a remaining 15% for another investor incase the website starts to take off. I will be doing all of the work and managing everything. Am i being greedy? It seems to me that if everything works out i would be doing alot of work for 50 percent and if things catch on ill be dumping more than 30k in marketing anyway after some success. So if you think about it 30k is really not much at all so does 49 percent seem to high to give another person just to fund initial launch?

Thank you very much, appreciate the advice, i want to get working on this ASAP.

It's very hard defining a number if you are discussing in such abstract terms.

Let us take this step by step:

1. If you don't have money, then I guess you need to offer "sweat equity". Now, what will you do for the venture and what will you charge for meeting those criterias? Instead of cash payment you have your compensation converted to shares at a pre-determined share price.

2. If your partner puts in $30,000 in total (+ formation costs?), then he will own 100% of the venture from day one. Slowly, but sure you will work up your position through actual work input.

That is how you have to structure it, unless you can convince your family to borrow you some money that you can use as your own equity in this venture.

Better have something than nothing. When you have no or little cash you have two choices: do it the slow but steady way (leveraging customer money as much as you can and develop bit by bit) or get others money in and either work up your position or borrow money to build your position right away.