The Chocolate Business Angel’s Views on Entrepreneurs

A useful profile here of a business angel. Will Kendall was the entrepreneur behind niche organic chocolate brand Green & Blacks which he sold to Cadbury plc for around £20 million back in 2005. Now Will is a business angel, investing in a series of businesses which fit his expertise and which he believes have sufficient growth potential.

Will makes some interesting comments about entrepreneurs. For example, his view is that too many entrepreneurs stifle innovation. How? By getting too involved in day-to-day decision-making. Kendall believes that the best way for a small business or start-up to innovate is to empower staff (nice link between motivation and competitive advantage).

Kendall also suggests that too many small businesses focus on keeping people costs low at the start-up stage, resulting in inexperienced teams. That’s a good point for students to remember - that a strategy of cost minimisation can have downsides for a business, particularly if it damages the process of new product development.

Kendall is clearly not a fan of start-ups which literally try to establish themselves on a shoe-string! How much does Kendall invest as a business angel? The interview suggests the typical investment is £100,000, and he adds value by working much more closely with management teams than traditional equity investors.