Building the First Industrial Empire in Another World

Chapter 23: The Terms

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Chapter 23: The Terms

Hollen leaned forward and steepled his fingers.

"Hoh? Interesting, a child like you can do business now huh?"

"Well you can see how extraordinary I am when it comes to running your paperworks," Ernest boldly said. "I am capable of running things when given an opportunity. And I believe that a man like you who only cares about generating profit would turn down such a lucrative opportunity."

For several seconds, Hollen simply stared at Ernest across the desk.

The forge owner’s sharp eyes studied him carefully again like he was trying to understand what kind of creature sat in front of him.

Because honestly?

Nothing about this situation made sense.

An eleven-year-old commoner’s son speaking about market scale, production capacity, pricing leverage, and investment partnerships sounded absurd in a medieval world.

Yet somehow...

Every strange thing Ernest predicted so far happened exactly the way he said it would.

The inventory systems improved efficiency.

The forge profits increased.

Worker disputes decreased.

Coal shortages nearly disappeared.

And now?

Workers downstairs practically begged for soap before even starting their shifts.

Hollen slowly leaned back afterward while letting out a dry chuckle.

"You speak like a merchant guild executive."

"Well, I am presenting a business opportunity."

"That’s the strange part."

The forge owner narrowed his eyes slightly.

"You actually understand what you’re talking about."

Because Ernest did not merely throw random ambitious ideas around.

He backed everything with reasoning.

Numbers.

Demand analysis.

Operational bottlenecks.

Profit forecasting.

That was rare even among adult merchants here.

Hollen eventually stood up from his chair before walking toward the office window overlooking the forge floor below.

Workers continued hammering iron while furnace flames flickered against the darkening evening light.

Then the owner spoke again without turning around.

"...How profitable do you think this can become?"

Straight to the important question.

Good.

Ernest immediately leaned forward slightly.

"That depends on scale."

Hollen glanced back toward him.

"Explain."

"Right now production is extremely limited because everything is handcrafted inside my home."

Then Ernest pointed toward the workshop downstairs.

"But if we establish dedicated production infrastructure, output increases dramatically."

The forge owner crossed his arms.

"Infrastructure?"

"Production room."

"Larger heating stations."

"Storage containers."

"Consistent raw material supply."

"Labor."

The more Ernest spoke, the more the conversation stopped sounding like small workshop experimentation and started sounding like industrial planning.

Which honestly excited him internally.

Because this was exactly how industries started historically.

Small production.

Growing demand.

Then scaling.

Ernest continued calmly.

"Right now demand already exceeds supply after only one week."

Then he tapped the desk lightly.

"That’s extremely important."

Hollen nodded slightly.

True.

Most products struggled to attract buyers initially.

Meanwhile soap demand exploded naturally almost immediately.

Actually, from a business standpoint, this was ideal.

No expensive persuasion required. 𝙛𝓻𝒆𝒆𝒘𝙚𝓫𝙣𝙤𝒗𝙚𝓵.𝙘𝙤𝙢

The product solved an obvious everyday problem.

Then Ernest continued.

"If we establish early dominance now, competitors will struggle catching up later."

Hollen frowned slightly.

"Competitors?"

"They’ll appear eventually."

That part was inevitable.

The moment merchants realized ordinary workers willingly spent money repeatedly on soap, imitation products would emerge sooner or later.

Medieval economies still followed profit incentives.

Hollen slowly returned toward the desk afterward before sitting down again.

"And what exactly are you proposing?"

Finally.

The real negotiation.

Ernest already expected this question.

"I manage production, operational systems, and formulation."

Then he pointed toward Hollen.

"You provide investment capital, facilities, distribution channels, and legal protection."

The forge owner narrowed his eyes.

"...Legal protection?"

"Successful businesses attract attention."

That was true in literally every era.

Taxes.

Guild pressure.

Competitors.

Political interference.

A poor commoner child launching a profitable manufacturing business alone would become vulnerable very quickly.

But Hollen? He was already an established forge owner, a merchant with a lot of connections, a property holder, and he could vouch for him.

"In return, we split profits."

Silence filled the office again.

"...What percentage?"

There it was.

Real business negotiation now.

"That depends on investment scale."

Hollen raised a brow slightly. Ernest continued.

"If you only provide workspace and materials then operational ownership should be mine and I get a monthly salary of course. Say, you financed everything, which you will do, then your capital would naturally hold majority ownership."

Ernest continued calmly.

"You’ll finance construction, equipment, raw material procurement, transportation, labor hiring, storage, and distribution."

Then he pointed toward himself.

"Meanwhile I contribute the formula, production methods, operational systems, scaling strategy, and quality control."

Actually, this setup resembled many early-stage businesses back on Earth.

One side contributed capital. The other contributed intellectual property and operational expertise.

The forge owner narrowed his eyes slightly afterward.

"So what exactly are you asking for?"

Fair question. Ernest already expected this part to become delicate. Because ownership percentages mattered enormously long-term. Too little ownership and he would eventually lose control over the industry he created. Too much demanded from the beginning and Hollen might reject the proposal entirely.

Balance mattered. Especially because realistically speaking. Hollen carried far more financial risk.

Ernest leaned forward slightly afterward.

"You should hold sixty-five percent ownership."

That immediately surprised Hollen slightly.

Probably because he expected Ernest to demand equal partnership like an unrealistic child.

Instead, Ernest continued logically.

"You provide nearly all capital investment."

"Without your infrastructure, this cannot scale beyond kitchen production."

Then he calmly added. "And investors taking majority shares during early expansion is normal."

The forge owner blinked once.

"Normal?"

"From a business standpoint."

Again with those strange modern explanations.

Still, Hollen could not deny the logic.

Capital carried risk. Risk demanded higher ownership. That was simply rational.

Ernest continued.

"I retain thirty-five percent ownership along with operational authority over production systems and product development."

Hollen rubbed his chin slightly.

"Operational authority?"

"I decide manufacturing processes."

"Quality standards."

"Expansion planning."

"Efficiency improvements."

Then Ernest looked directly toward him.

"Because that’s where my value lies."

Hollen was deep in thought, considering the offer, and after a minute of contemplation, he finally spoke.

"Very well, let’s do that."

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