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THE SEARCH FOR A

SOUND BUSINESS
IDEA
Prepared by:
MANUEL T. CASAPANGRA
III
JAI ADVINCULA
ALY LEYVA
WHAT IS A SOUND BUSINESS IDEA

DEFINED AS THE ECONOMIC OPPORTUNITY WHICH


IS WITHIN THE REACH OF THE ENTREPRENEUR, AND
WHICH WILL PROVIDE HIM WITH A DESIRABLE
VALUE.

AN ENTREPRENEUR WHO IS WELL GROUNDED IN


THE COCEPT OF SOUND BUSINESS IDEA WILL BE
ABLE TO SAVE TIME, EFFORT, AND MONEY IN
PURSUING HIS GOALS.
EXAMPLES OF BUSINESS IDEAS
DIFFER IN FORM

1. AN OLD TYPE OF BUSINESS CAN BE PROFESSIONALIZED.

2. A STANDARD PRODUCT CAN BE CUSTOMIZED.

3. NEW TECHNOLOGY CAN BE ADAPTED TO


MANUFACTURE AN OLD PRODUCT

4. IMPORTED PRODUCTS CAN BE REPLACED BY LOCAL


PRODUCTS

5. BUSINESS OPERATIONS CAN BE INTERNATIONALIZED


PROCEDURE IN DETERMINING THE
BEST BUSINESS IDEA
PREPARATION
OF THE LIST OF
BUSINESS IDEAS

SCREENING

FINAL
SELECTION
METHODS OF SEARCHING
FOR IDEAS
1. UNANTICIPATED MEANS; AND
2.DELIBERATE SEARCH.
METHODS OF
GENERATING
BUSINESS IDEAS

UNANTICIPATED DELIBERATE
MEANS SEARCH

WORK

HOBBIES USING SEARCH IDEA


ACQUAINTANCES QUESTIONS PROMPTING

CHANCE EVENT

SOMEONE SOME
CUSTOMER
ELSES OTHER
REQUEST
IDEA EVENT
UNANTICIPATED MEANS
WHEN THE ENTREPRENEUR FINDS BUSINESS IDEAS
WITHOUT SERIOUS EFFORT, THE METHOD IS REFFERED TO AS
UNANTICIPATED MEANS. INCLUDED IN THIS MEANS ARE THE FF.

1. THE PERSONS WORK;

2. THE PERSONS HOBBIES;

3. THE PERSONS ACQUAINTANCES; AND

4. A CHANCE EVENT ENCOUNTERED BY THE PERSON


DELIBERATE SEARCH

1. USING SEARCH QUESTIONS QUESTIONS ARE USED TO


DRAW OUT SPECIFIC ANSWERS.

EXAMPLE OF SEARCH QUESTIONS:


HOW CAN THIS PRODUCT BE MADE DIFFERENTLY?
WHAT WILL MOTIVATE THE CONSUMERS TO BUY MY PRODUCT
INSTEADOF THE COMPETITORS PRODUCT?

2. IDEA PROMPTING ENCOUNTERS WITH SOMEONE ELSES


IDEA, OR A CUSTOMER REQUEST, OR SOME OTHER EVENT MAY
PROVIDE HINTS OR CUES LEADING TO THE BUSINESS IDEA.
SCREENING GENERATED IDEAS
THE SEARCH FOR A SOUND BUSINESS IDEA CALLS FOR THE PREPARATION OF A
LIST SO THE BEST CAN BE SELECTED. BEFORE SELECTION IS MADE, HOWEVER, THE IDEAS
LISTED MUST BE SCREENED FIRST.

SEARCH FOR
1. UNANTICIPATED MEANS
BUSINESS
2. DELIBERATE SEARCH
IDEAS

1. MARKET FEASIBILITY
SCREENING 2. TECHNICAL FEASIBILITY
3. FINANCING FEASIBILITY
4. FINANCIAL FEASIBILITY

ADOPTION OF
THE SELECTED
BUSINESS IDEA

PREPARATION
OF FORMAL
PLANS
MARKET FEASIBILITY

A BUSINESS IDEA MUST PASS THE TEST OF MARKET


FEASIBILITY.
STABLE AND SUFFICIENT DEMAND- A BUSINESS IDEA WILL NOT
LAST IF THERE IS INSUFFICIENT DEMAND FOR THE PRODUCT
AND SERVICES THAT IS CONTEMPLATED.

COMPETITIVE STRENGTH THE BUSINESS IDEA MUST BE SUCH


THAT THE VENTURE CAN EFFECTIVELY COMPETE WITH
CURRENT OR POTENTIAL COMPETITORS.
SOURCES OF MARKET
INFORMATION

INFORMATION REQUIRED TO DETERMINE THE MARKET


FIT OF THE BUSINESS IDEA.
PRIOR STUDIES OF THE MARKET OR RELATED MARKETS BY
OTHER COMPANIES, GOVERNMENT AGENCIES AND
ENTREPRENEURS.

ACTUAL POLLS OF POPULATION REPRESENTING CUSTOMERS.

NEGOTIATE WITH PROSPECTIVE CUSTOMERS TO DETERMINE


WHETHER OR NOT THEY WILL ACTUALLY BUY.
TECHNICAL FEASIBILITY

BUSINESS IDEAS NEEDS TO DETERMINE THE


PRODUCTS, SERVICES AND MANPOWER THAT
WILL ACTUALLY BE NEEDED IN ORDER TO
PERFORM THE BUSINESS. THOSE CONCERNS
WITH TECHNICAL NEEDS SHOULD BE
REALIZED.
FINANCING FEASIBILITY
IT IS A STUDY PROJECT OF HOW MUCH START-UP CAPITAL IS NEEDED,
SOURCES OF CAPITAL, RETURNS ON INVESTMENT AND OTHER FINANCIAL
CONSIDERATIONS.

THE VENTURE MAY BE DETERMINED THROUGH ANALYSIS OF


FINANCIAL PROSPECTS IN PREPARATION OF THE CAPITAL PROJECTED
FINANCIAL STATEMENTS SUCH AS:

PROJECTED INCOME STATEMENT SHOW HOW THE NET INCOME


OF THE FIRM IS ARRIVED AT OVER A STATED PERIOD OF TIME.

PROJECTED BALANCE SHEET SHOWS FIRMS ASSETS, LIABILITIES


AND NET WORTH ON A PARTICULAR DATE.

PROJECTED CASH FLOW SHOWS THE INFLOWS AND OUTFLOWS


OF CASH BY THE FIRMS ACTIVITY OVER A STATED PERIOD OF TIME.
FINAL SELECTION
THE PURPOSE OF SCREENING IS TO ELIMINATE THE BUSINESS IDEAS THAT
DID NOT PASS THE ADAPTED CRITERIA.

STATUS QUO ALL BUSINESS IDEAS LISTED PASSED THE


ADAPTED CRITERIA.

SHORT LIST SOME IDEAS GENERATED WERE


ELIMINATED.

ZERO LISTING ALL IDEAS GENERATED AND LISTED


WERE ELIMINATED.
ORGANIZATIONAL CULTURE
AND CREATIVITY

1. ENCOURAGEMENT OF CREATIVITY AND RISK TAKING


2. REWARD FOR CREATIVITY
3. OPEN COMMUNICATION
4. ALLOWANCE FOR ERRORS
5. A CLIMATE OF PARTICIPATION
6. STRUCTURAL MECHANISM THAT AID CREATIVITY
7. TRAINING IN THE CREATIVE PROCESS
8. FLEXIBILITY
THANK YOU!!