Percentage of profit split: special case, please advise ...

[vision]

Hello there,
I am starting a new business (a high tech company providing software solutions) with a partner and I would like to know the fair percentage of the profit for both of us given the following facts.

1 - we practically need zero cash investment to start and since our product is a software, we will have very little expenses.
2 - I will be working full time in the company and my partner has his full time job as a professor in a university.
3 - The technology is based on advanced mathematical algorithms that is invented and implemented by me.
4 - I have been working with my partner (as a researcher, not a student) in an academic environment and he was my supervisor. So, out of loyalty, I like to have him on board now that we can make money.
5 - He will bring his reputation as a university professor, he will NOT take salary, I will take a reasonable salary.
6 - From a technical point of view, I will be doing all of the work and he will bring ideas, past experience and time to participate in meetings and make decisions together.
7 - Because of the above situations and no money investment, there is very little at stake except our time.

I know there is no right or wrong answer but I appreciate if you let me know your thoughts or suggestions.
I want this to be fair for both parties. Please indicate what percentage (of the profit) would you consider for me and what for my partner?

Thank you very much for your advice,
Regards

[nealrm]

Assuming close to zero investment on both parties, I would split the profits 50/50. However I would define profits as Profits = Net Income - Net expenses - your salary.

[Fulcrum]

I think you need to double check your math about the finances. If I'm reading your post correctly, than your start up has no clients, no money to start and no money to pay a salary. How can you earn a salary if there is no funding to pay it? Why would you want (not need) to draw a salary when the money would be better spent on development and marketing for your software? This early in the game you want to be developing and creating equity in your company not pulling the profits out as salary.

[vision]

Thanks for your comments nealrm.

[vision]

Fulcrum: Thanks for your comments. You are right about creating equity. However, please note that in our case, we actually do have a client and that`s how we started thinking about staring our company. We approached this client (another company) hoping that they find our research useful and fund it. It turned out that they are very interested and they believe our proposal has economic value.
Yes the money is better spent on development but my salary is just that (the cost of development). This is a special project that requires specific skills and I would be the one who can develop the program. Rather than doing this as a research project in university and being paid a minimum wage (for me), my supervisor and I are thinking of starting the company and make profit for both of us.
This is a very narrow market, so the business plan is not to sell our software but to provide `service` to this other company. We will not be looking for other possible clients (which are hard to find) but to continue with this existing client.
Thanks again. I appreciate any further comments you may have.

[Fulcrum]

I'm not sure I like this plan, but if all you want to do is sub-contract to your current customer than deciding amongst yourselves is all you need to do. This is my simple opinion and I wish you the best in your endeavors.

On a related note, why limit yourself to only the one customer/client? I can understand this in the short term during development, but I would recommend leaving the doors open to garner new clients in the future once you can prove out your software and business. I'm not a programmer/software developer so I don't know if future business would require large changes to the software code, but from a pure business standpoint it makes sense to leave the door open.