Johnson Angel Investments Case Study
Essay by fame3032 • December 17, 2013 • Case Study • 1,047 Words (5 Pages) • 2,355 Views
Johnson Angel Investments, LLC.
Eugene Reynolds
9/21/2013
Small Business Mgmt. & Entrepreneurship
Robert Pandel
Development Stage
In order for the Johnson Angel Investments, LLC to be willing towards an investment, an individual's business must be past the preliminary stages of growth, or what we'd classify as an overall "growing business." Also, one's concept must be proven and successful. To clarify, the investment must show great promise for a return and must have an upside of 10% or higher.
Geographic Location
For us to invest in a businesses' pronounced ideas, we request that the location of a business owner's company is in the local area. Mr. Joseph Johnson, CEO Johnson Angel Investments, LLC would like to visit the business on his own time in order to maintain strong connections with his investments.
Industrial and Market Opportunities
We invest in new age companies that have already evolved or will expand and recreate the technologies of tomorrow in order to build better futures for upcoming generations. There are plenty of great business ideas, but not all businesses will generate returns that justify Johnson Angel Investor and venture capital financing. Therefore, while providing great technological advancements is critical, ideas must also display promise as they relate to "sticking" with consumers.
Industrial Focus
At Johnson Angel Investments LLC, we're primarily looking to invest in a company that majorly revolves around the internet. A company that falls under this umbrella will have a substantial room for growth.
Revenue
One's company must already be off to a great start. We will only display interest in investing in a business that has garnered $100,000 or more in sales each year. Moreover, Mr. Johnson requires a list of sales and an already existing prototype to be readily available. We choose our investments very carefully and as with any other investor, we'd require a company to be valuable and profitable.
Return on Investment (ROI)
Mr. Johnson specifically desires an upside of 10% or higher.
Management
The acquisition of an investment from Johnson Angel Investments, LLC means that a company's management must be as intact as all aforementioned factors. We strongly believe that weak and/or less passionate leaders often diminish the potential of businesses. Powerful leaders should display a legitimate interest in their craft in addition to both drive and determination. Weak links in chains of management can and have proven to be detrimental to companies and thus, all vital parties involved must exhibit these attributes, no exceptions.
Sustainable Competitive Advantage
In direct correlation to industrial and market opportunities, Johnson Angel Investment requires that a company has a plan to stay afoot amongst its contemporaries. Longevity as it relates to how long it takes a competitor to adapt and/or capitalize on an idea is critical, and we're looking to invest in companies that can quickly adapt another advantage while being financially enabled to offer their service(s) cheaper.
Exit Strategy
While we are looking for a high return, we're flexible in terms of possible exit strategies; considerations for these are as followed:
* Merger/Acquisition
* Buyout by partner in business
* Franchise the business
* Hand down the business to another
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