On-selling a small/micro-business' goods. What kind of terms should I negotiate?

First decide what you're doing. #1 Either you are joining her company to sell the product with her responsibility on production and yours on sales and marketing in which case you work out ownership and revenue sharing. #2 You are selling your own products (not her branded product) to your own customers and she is your wholesale supplier. In the latter which probably makes more sense if you can really sell, work out terms so she manufactures the products for you and takes 30, 60, 90 days payment. Or Just-in-time production would work too, filling your orders as you need them. You want to sell your own branded merchandise not hers. If you're successful you don't need her undercutting your pricing and ruining the market. If you are not successful, you can easily close up the operation and dump remaining inventory. SALES is what drives a business. All other areas support revenue growth and expansion.