SOUND OF

BUSINESS IDEA
Group 4
Christian Ares John Paul Olvinar Rival
John Lloyd Balanon Lovely Dianne Dilla
Josiah Bringas Erick Jayson Malabarbas

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I. Topic 5- The Search for a
Sound Business Idea
Topics to be discussed:

A. What is Sound Business Idea?

B. Procedure in determining the best Business
Ideas
C. Methods of searching for Ideas
D. Screening Generated Ideas
E. Final Selection
F. Organizational culture and creativity

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 What is Sound Business Idea?
It is defined that the economic opportunity which is
within the reach of the entrepreneur and which all
provide him desirable value. An entrepreneur must
determine the soundness of a business idea before
committing himself financially.

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 What is Sound Business Idea?

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The product or service offering may be
improved in terms of:

PERFORMANCE
MAINTENANCE
ACQUISITION COST
SALVAGE VALUE
USES

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 Business Ideas differ in form.
Examples of these forms are the following:
An old type of business can be professionalized.
Operations can be streamlined and better organized.
A standard product can be customized.
New technology can be adapted to manufacture an old
product.
Imported products can be replaced by local products.
Business operations can be internationalized. This is a
real challenge to the entrepreneur.

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 B. PROCEDURE IN DETERMINING THE BEST
BUSINESS IDEA
Business ideas may be generated by anyone connected
with the firm, but it is very important that the most
applicable idea to the firm’s objectives and resources is
chosen. As such, a procedure must be adapted. The steps in
the proposed procedure are as follows:
1. preparation of the list of business ideas
2. screening of the listed ideas
3. final selection.

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C. Methods of searching for Ideas
1. Focus Group- Group of individuals providing information
in a structured format is called a focus Group.
2. Brainstorming - A group method of obtaining new ideas
and solutions is called brainstorming.
3. Problem inventory Analysis - uses individuals in a manner
that is analogous to focus group to generate new products.
4. Creating Problem Solving - is a method for obtaining new
ideas focusing on the parameters.
5. Reverse Brainstorming - Similar to brainstorming , but
criticism is allowed and encouraged as a way to bring out
possible problems with ideas.

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D. SCREENING GENERATED IDEAS

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 Feasibility
Feasibility is an analysis that considers all of a
project's relevant factors—including economic,
technical, legal, and scheduling considerations—to
ascertain the likelihood of completing the project
successfully.

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D. SCREENING GENERATED IDEAS

1. MARKETING FEASIBILITY
A. Stable and Sufficient Demand - Demand that
remains constant or shows signs of growth throughout
long periods indicates the probability of market
feasibility.
B. Competitive Strength- The venture can
effectively compete with current or potential
competitors.

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D. SCREENING GENERATED IDEAS

1. MARKETING FEASIBILITY

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D. SCREENING GENERATED IDEAS

2. TECHINICAL FEASIBILITY
Business ideas often times appear easy to execute, but
it is not really so when converting them into real
products or services with required quality or quantity.

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D. SCREENING GENERATED IDEAS

3. FINANCING FEASIBILITY

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D. SCREENING GENERATED IDEAS
4. FINANCIAL FEASIBILITY

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 FINAL SELECTION
Is the final process which proves that the applicant
has qualified in all the rounds of the selection process
and will be issued an appointment letter.

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 E. FINAL SELECTION

3 Types of Final Selection

Status Quo Listing - Is an all ideas listed passed the adapted
criteria and defined as the current or existing state of affairs.
Shortlisting - Means some of the ideas generated were
eliminated and identifying candidates from the applicant pool
that best meet the requirements and criteria of a job posting
Zero listing - Is all business ideas generated and listed were
eliminated. The purpose of screening is to eliminate from the
list the generated business ideas that did not pass the adapted
criteria.

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 ORGANIZATIONAL CULTURE AND
CREATIVITY
A culture of creativity within an organization allows
employees to use their naturally innovative natures,
and enhances the ability of an organization to
respond to problems and opportunities in interesting,
unusual, competitive ways.

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F. ORGANIZATIONAL CULTURE AND
CREATIVITY
4 Types of Organizational Culture and Creativity
Adhocracy culture – the dynamic, entrepreneurial
Create Culture.
Clan culture – the people-oriented, friendly Collaborate
Culture.
Hierarchy culture – the process-oriented, structured
Control Culture.
Market culture – the results-oriented, competitive
Compete Culture.

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 THANK YOU!
Group 4
Christian Ares John Paul Olvinar Rival
John Lloyd Balanon Lovely Dianne Dilla
Josiah Bringas Erick Jayson Malabarbas

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