Here's the question: Is this friend someone you want as a partner -- forever? Is he going to do half of the work? Is he so smart or so hard working or so capable that you're happy to take only 45 percent of the business just for having him also involved in it? If that's the case, it's not about the money so much as the two of you starting a business together. If you want to be equal partners, then be equal partners.
But don't do it for $1,000. There are a lot of better ways to find $1,000 than giving away half ownership in a company. If he's not going to do half of the work, borrow the money from somewhere else. There's no way you'd even consider giving ownership in a business for $1,000. Absolutely not.
Related: How to Find the Right Investor for Your Business
Related: Don't Give Away Ownership Easily
Tim Berry is the chairman of Eugene, Ore.-Palo Alto Software, which produces business-planning software. He founded Bplans.com and wrote The Plan-As-You-Go Business Plan, published by Entrepreneur Press. Berry is also a co-founder of HavePresence.com, a leader in a local angel-investment group and a judge of international business-plan competitions.