You tell them, as a knowlegable person in industry X in order for your idea for be a success you'll need at least $10 mm in capital in order to provide funding for:
A $1mm
B $2mm
C $500K
D $6.5mm
It's business he'll understand that you've analyzed and identified the obstacles and put together the budget to overcome these issues, I used to work in mining, many projects that will become successful require funding far in excess of $10mm.
After you say that, if you feel confident in his abilities and like the idea, you may want to become part of the business having demonstrated your ability to consult and manage risk to the business.
PS. His idea doesn't suck, it simply requires an amount of capital that may or may not exceed what he has at his disposal.
After you say that, if you feel confident in his abilities and like the idea, you may want to become part of the business having demonstrated your ability to consult and manage risk to the business.
PS. His idea doesn't suck, it simply requires an amount of capital that may or may not exceed what he has at his disposal.