BO & Angel CEDR - 07081018848

ADIKE DANIEL TV …. Official Videographer of the SUG UNN & Member, SUG UNN’ Editorial Board.
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E-NOTES FOR CEDR 341

Lecture Topic: EVALUATION OF BUSINESS OPPORTUNITY &
ANGEL INVESTORS
Date: 21st February 2023
Opening Quote:
“If you are not PREPARED, Even when the OPPORTUNITY is presented to
you, you wont be qualified, for PREPARATION always comes before
OPPORTUNITY”.
- DISTINGUISHED COMRADE ADIKE DANIEL
1. EVALUATION OF BUSINESS OPPORTUNITY
The RAMP MODEL OF BUSINESS EVALUATION
R= Return on Investment: He considers if there will be profit when he ventures

into the business or whether there will be loss.
It considers the ENVIRONMENT of the business and checks the amount of
capital to be invested in the business.
A= Advantage:
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PREPARED BY ADIKE DANIEL UCHEOMA
He considers if there is a barrier to entry to the business. Did the government

set barriers that should be fulfilled before you can perform the business? i.e.
government certification. You also look at “competitive advantage”.(do you
have the creative mind and knowledge to forge the business).
MARKET: The entrepreneur considers if the product is marketable? Is it

important and in high-demand, and also the price of the good.
POTENTIAL: This is the EXPECTATION (the risk and the reward) that is
attached to the business. The reward can be termed to be POSITIVE or
NEGATIVE.
In evaluation of business opportunity, try to have an idea on that business.

You don’t have to jump into poultry farm and you forget to look at the time
when you will have to inhale the smell of pigs where they are kept.

TOPIC:
ANGEL INVESTORS
They are Guiding angels. These are persons that have retired and wealthy
entrepreneurs who went back to invest with younger entrepreneurs.
There are 4 Categories

1. Guardian Angel
2. Entrepreneurial Angel
3. Operation Angel
4. Financial Angel
REASONS WHY ANGEL INVESTORS EXISTS

1. He invests because He needed some development in some areas
2. He wants to teach/educate the younger generation on entrepreneurship.
3. He wants to transfer his expertise to the younger generation.

1. Guardian Angel: They are those entrepreneurs who later turn to

INVESTORS, and they invest on their areas of expertise. They try to mentor
people on a particular field of endeavor.
2. Entrepreneurial Angel: They are versatile in various things. He tries to

mentor people on every field of entrepreneurship. He doesn’t have
boundary.
3. Operation Angel: They are referred to as the management staff of the

company who has the managerial opportunity to validate, control and
manage the venture.
5. Financial Angel: They are the angels that are wealthy and have higher
tolerance for risks, they contribute the highest percentage of capital
needed. They are the people who inhibited fortune.
CRITERIA USED BY ANGELS IN EVALUATING POTENTIALS

1. The angel investor evaluates the business: He would assess the business and
the young entrepreneur he wants to venture with
2. The Geography of the Business:
is there a proximity between the organization from his home.

3. The Industry:
Will the industry be a high-growth OR Low-term growth industry? Will it
continue to exist perpetually?
4. The growth potential of the business:
The angel considers the growth potential of the business to see if there will
be increase or decline in growth.
5. Management Team: He considers the personal attributes and the behavioral-
record and character exhibited by the young entrepreneur. If I mentor him,
can he mentor others? Will he use my money to do what I asked him to do?

TOPIC: VENTURE CAPITAL

Venture capital refers to the money lent to someone so that they can startup a
business. It is a long-term commitment shares that enables a company to grow.
This shares is the reward for the Venture Capitalist. Venture Capitalist is the
person who lends the money!
NOTE::: LOAN IS DIFFERENT FROM VENTURE CAPITAL!!! Loan must be repaid
monthly. VC means Venture Capital.
Before the VC collects the shares, a bill is involved. A bill is an agreement signed
between the VC and the entrepreneur i.e. It contains the percentage that the VC
and the entrepreneur will collect from the business (annually, bi-annually etc).
THINGS TO CONSIDER AS A VENTURE CAPITALIST

1. The management capability:
will the young entrepreneur be able to manage the venture.
2. Market Growth:
He checks if there is sufficient access to market. Can the goods be carried to
the market and can people ask for our product?
3. The product itself:
What type of business do you want to trade in, what is your business idea
and how feasible is the business? will the product add value to the business.

4. The RISK:
-management risk, inexperience risk, competitive risk, cash-out risk.
Management Risk:
As a young manager, can you be able to manage the risk involved as a young
entrepreneur. (Because the manager (venture capitalist) cannot be in the
shop everyday).
Inexperience:
What level of experience do you have in the business?
Competitivity:
Do you have the ability to compete with other products in the market?
Cash-out risk:
Are you capable to place or transfer money from one place to the other?
5. RETURN ON INVESTMENT
Will there be profit from the business.
6. BILL:
He bargains how much will be his share from the business and the sharing
formula. Is the bill favorable to the VC or not?

7. Customer:
Before the VC ventures with a young enterpreneur, he checks for the market.
SOURCES OF INFORMATION FOR VENTURE CAPITALIST

1. Personal evaluation: You know what you can do and what you cannot do.
2. Assessment from peers or business associates: seek support and advice
from your friends before embarking into a business.
3. Independent Research:
It is a feedback or information you gathered from the people who have
used your product or services.
4. Watching NEWS:
Through watching news you will know what is trending online. You can
use this medium to locate a particular opportunity that you can venture
into.
METHOD FOR MONITORING OR EVALUATING BUSINESS PRODUCTS AND

SERVICES
1. Identifying or Defining a Problem:
2. Brainstorming: Having a critical thinking on how to solve the problem. You
are able to think out of the box and how to develop yourself

3. Combination of Ideas: you liase with others to garner ideas. Ideas from
others can become productive.
4. Focus entirely on what you want:
Don’t jump into multiple ventures! Stick to One and be good in it!
5. Have a genuine Interest:
Why am I interested in embarking in this business?
6. Look at a opportunity as a challenge:
An entrepreneur sees a challenge as a “friend”. Assuming a course is
giving you trouble, you will concentrate more in it and you will bag it A’.
7. Always carry a Note Pad: So that you can be able to document the
information gathered or phone number of the person. It helps for proper
harmonization of ideas.
PLEASE SUBSCRIBE TO MY YOUTUBE CHANNEL:

ADIKE DANIEL TV
CLOSING QUOTE: KINDLY READ
“You cannot be distinguished until you extinguish the
pride of life from within you.”.
AND SHARE WITH
- DISTINGUISHED COMRADE ADIKE DANIEL YOUR

COURSEMATES!


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ADIKE DANIEL TV …. Official Videographer of the SUG UNN & Member, SUG UNN’ Editorial Board.

Connect with Dan’s Tutorial on Whatsapp: 07081018848

E-NOTES FOR CEDR 341

1. EVALUATION OF BUSINESS OPPORTUNITY

The RAMP MODEL OF BUSINESS EVALUATION

R= Return on Investment: He considers if there will be profit when he ventures

DAN’S TUTORIAL UNN ...empowered to excel

Tap here to chat & Connect with ADIKE on Whatsapp 1

He considers if there is a barrier to entry to the business. Did the government

MARKET: The entrepreneur considers if the product is marketable? Is it

In evaluation of business opportunity, try to have an idea on that business.

DAN’S TUTORIAL UNN ...empowered to excel

Tap here to chat & Connect with ADIKE on Whatsapp 2

There are 4 Categories

REASONS WHY ANGEL INVESTORS EXISTS

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1. Guardian Angel: They are those entrepreneurs who later turn to

2. Entrepreneurial Angel: They are versatile in various things. He tries to

3. Operation Angel: They are referred to as the management staff of the

CRITERIA USED BY ANGELS IN EVALUATING POTENTIALS

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TOPIC: VENTURE CAPITAL

THINGS TO CONSIDER AS A VENTURE CAPITALIST

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SOURCES OF INFORMATION FOR VENTURE CAPITALIST

METHOD FOR MONITORING OR EVALUATING BUSINESS PRODUCTS AND

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PLEASE SUBSCRIBE TO MY YOUTUBE CHANNEL:

- DISTINGUISHED COMRADE ADIKE DANIEL YOUR

DAN’S TUTORIAL UNN ...empowered to excel

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