Development Negotiation

[Emilio Ramirez]

I've just started an Architectural firm. One of my ideas was to exchange Architectural services to select clients for ownership in the project. For example, I know a couple of chefs who want to start their own restaurant. My goal is to help them develop their plan to be able to present to investors. I am willing to do a lot of work upfront without payment as it would be beneficial to them and I don't need the money immediately.

However, this represents a larger risk on my part. What do you think would be acceptable compensation for waving my fee in whole or in part until they are in business. Using numbers just for example. Let's say they lease a space and the construction costs are 200k. Typical arch fees would be about $25 k. One structure could be $5k paid for some direct costs and then 20k investment in their business.

Thinking out loud a little bit here. Any thoughts?