You Decide - Essay Example

Johnson Angel Investments LLC is a venture capital company created with the mission of investing in new emerging new age business opportunities with prospects of tremendous growth for the new economy. As a venture capital company the firm strives to provide the opportunity for our clients to fully develop and capitalize their businesses to create and manifest their growth potential to the fullest. Johnson Angel Investment looks at a diverse number of internal and external factors to decide which businesses to invest on.

In evaluating which companies to partner with, Johnson Angel Investments LLC has outlined a set of general guidelines used to evaluate potential investments: 1. Development Stage- As potential business investments, Johnson Angel Investments LLC, will not consider businesses in the early development stages or with untested products or concepts. The company is looking for new, innovative market proven products, concepts or processes that present a unique market opportunity and show potential for extraordinary growth (Tipinvestor, 2008). 2. Geographic Location- As a venture capital company the firm is looking to invest in our local American economy.

The company feels that true sustainable economic growth for our economy can only be brought about by reinvesting in redeveloping the productive capacity of our country. Therefore the firm will only consider locally grown and developed business as potential investment opportunities. One of the goals of the firm is to strive to not only provide our investments with the financial and intellectual capital needed to achieve success, but to be able to provide assistance on rebuilding our economy as a whole.3. Revenues & ROI- Potential business investments must be already established with current annual sales revenues over $100,000.

As an investment company the firm favors businesses with high operating margins which help provide a higher level of operating safety. Higher operating margins helps a developing business deal with the higher risks and added difficulties of achieving sales goals in a weak economy and properly growing and developing in a new market. The company requires a ROI of 10% or higher from any business partners to be considered as potential investments. 4. Business and Management- The company is not partial to any specific industry or sector.

As a whole we our philosophy is to look for companies that provide unique market offerings that do things faster, more efficiently and cheaper (Sopriscapital, 2002). Possessing the unique competitive advantage of providing proprietary products, processes and solutions that stand apart from the competition coupled with possessing and experienced and competent management team is of utmost importance and is one of the important characteristics the company looks for in the business (Psaras & Rugaber, 2001).5. Market potential, expansion and innovation- Last but not least the firm studies the overall market growth prospects in the future for the business and how the company has positioned itself to assure continuous growth for at least the next few years.

Furthermore the company’s philosophy must be focused on the long term viability of the business .Providing adequate resources into R&D and utilizing them effectively and efficiently is a critical part of a successful long term business strategy.6. Size of investment- Although Johnson Angel Investments LLC will only invest up to $250,000 in any individual project the company will consider investments of with higher capital requirements as long as there are other potential angel investors interested in providing the additional required capital for the project.

ReferencesPsaras, P., Rugager, C. (2001). Fisher’s Investing Criteria. Retrieved May 18, 2011 from Sopriscapital.com (2002). Investment Criteria. Retrieved May 18, 2011 from http://www.sopriscapital.com/criteria.asp Tipinvestor.com (2008). Investor Tips. Retrieved May 18, 2011 from http://www.fool.com/specials/2001/sp010118.htm?source=EDSP