re: New Business Startup Question

Giving up 50% of your company before it exists is not a good idea. 50% means all decisions have to be made together and if you're ever at an impasse on something you're stuck. He also holds an advantage intially because he put the money up. Your position grows stronger as the business grows stronger and becomes about you and the relationships you build with your clientelle.

I'd structure it as a loan with payments not beginning for a predetermined period of time so the business has a chance to get on stable ground before taking on payments for debt. I'd also negotiate a much lower stake in the company for the investor.