OGG - you also haven't mentioned a contract between the two of you ... you will need one and will need an attorney to look it over for you ... another $500 start up cost. Is this person to be an investor that will be paid off and have no further interest in the business, or will this person be a partner of the ongoing business? There is a difference in how you want to structure the deal for each type. If he wants to be an ongoing partner, be very specific about what areas his decision will be sought and what areas are your pervue only!
When structuring your contract, you will want to have it in writing that he will receive his pay-back from the net profits, not the gross profits. That way, until you are up and running and have a steady processor, you don't have his overhead, and when you are getting ramped up to meeting the processor capacity you still won't show a profit for several months to another year! If the business shows a net profit before the 3rd year, then you will be doing very well.
Another thing is to value your contribution of the land use, your time and EXPERTISE and you will need to figure a paying wage for yourself ... whether or not you take that wage ... which can be charged off as your ongoing investment into the business. The land use can be set up as an ongoing expense for the business, or can be part of your contribution valuation.
Have you considered how the business' taxes are going to be setup? I suggest that you consult a CPA for structuring and helping set up your record keeping. Another $500+ startup cost. You also might be able to get a good deal on them filing your quarterly tax reports from your records ... which means they will want QuickBooks or Quicken so you can send them in electronically.
Realize this: you seriously don't want to show a profit for the first few years. I also think you are underestimating your livestock production as far as your animal down time and losses ... it is probably going to be closer to 10% at any one time ... does that don't take on the first breeding and need to be preg checked 2 weeks later, cycling them into the next breeding ... kit losses at weaning, does lost to birthing deaths, etc. On your taxes, you only take off the value of the doe and the loss of progeny for that year, but the company realizes a loss of the lifetime of the doe (about 3 years.)
Something else you might have figured out from what I have suggested is that your "bring to the table" value may very well amount to a significant portion of what the investor is willing to invest. You want this as each partner gets a portion of the net profit/tax burden according to their portion of the initial investment.
Another item for you to consider. Information sharing with your investor. Honestly, you need information (consultations with professionals) to make certain recommendations that he simply does not need to know, nor should he know about them. One thing I have learned with the businesses I have been involved in, DO NOT TRUST YOUR PARTNER further than their interests lie ... his will lie with money and profits, yours will lie with livestock and profits. I am not saying don't treat him as if he is out to steal you blind, but to protect yourself, you need to keep your "business" to yourself and this goes back to what kind of partnership you two will have. In fact, is he aware of your membership in this forum and that you are discussing details here? That could backfire in the future if you two have a disagreement over something.
Now, I am not an attorney, nor a CPA, but I have owned my own businesses, and I have been involved in the startup of 3 other successful businesses. These are items that you should take into consideration. So, don't feel like the lone ranger in this as I have my very own "rabbits for processing" file and have located the land that has a former pig growout barn on it that I am interested in growing into
