Project identification is the initial stage of finding the best or suitable business type for yourself. It is the very first phase of choosing or selecting the right business type or the right career option for yourself. Project identification is compiled with many things like Collection of data, compilation and analysis of economic data. Project identification can be the most important factor for a person who is looking for some projects or is ready to start a business but is very confused about what to do next.
Project identification is not simple as it looks, it undergoes many various steps which a person needs to understand completely. The outcome of project identification is often a project proposal or business case document, which includes all the findings from this phase and serves as the foundation for the project’s initiation and planning stages.
What is the need of Project Identification ?
- It clarifies the objective and Goals of a person, a person will know all the ups and down he/she will need to face in the upcoming business or project they are planning to do
- It defines the scope of a project or a business with all the assumptions and future outcome and also provides a clear Framework for planning and execution.
- It also evaluates whether the project is technically, financially and operationally helpful to invest in or not.
- Project identification identifies all the potential risks and challenges a person needs to face in the future time for the development of strategies and plans.
- It is also important to know whether the project or business have long term Beneficial consequences or not.
- The most important thing is to make sure that in what type of business you are investing there should be a good profitable future.
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Stages of Project Identification-
Needs and Opportunities Identification –
- Conduct market analysis which clears trends and opportunities.
- Evaluate the needs and challenges of a project.
- Engage stakeholders in brainstorming to generate the project ideas.
Objective and Goal Definition-
- Set a clear picture of Your goals and objectives which fully define your interest.
- Develop SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals.
- Ensure that the project objectives must be aligned with your own objectives.
Environmental scanning-
- It covers the identification of opportunities and threats to the organisation.
- It also measures the trends of a company.
- Environmental scanning is an aggregate of all the conditions which affect the business and its surroundings.
- There are many types of environment such as economic environment, technology environment, competitive environment and many more.
SWOT analysis
- SWOT analysis stands for strength, Weaknesses, opportunities and trends.
- It is a method which enables the organisation to Identify the opportunity which can be profitable to you only.
Preliminary Scope Definition
- it defines the broad scope of a project with its assumptions.
- It identifies and describes the major deliverables of the project.
- Identify any limitations that may influence time, budget, and resource control on a project.
- Record all assumptions made in the process of project identification.
- A preliminary scope document that will provide a clear framework to the project during the planning and execution processes.
Resource Identification
- It identifies Skills, Expertise and Resources Required.
- It develops a resource allocation and management plan.
- It estimates the budget and available financial resources.
- It identifies materials, equipment and technology required.
Risk Management
- Identify the potential risks and challenges that could impact the project or business.
- Analyse the impact of each identified risk.
- Get the solutions that will help you cope up with the identified risks.
- Create plans to address potential risks and challenges.
Profit potentials of different projects
- Identify the potential of profit of different projects.
- Compare different businesses with each other, search for their long term goal, then make a comparison among them and then choose the best business or project for yourself.
- While looking for profit potentials keep the following points in mind –
- Competition among the existing businesses.
- Threat of new entrance.
- Bargaining power between buyer and supplier.
- Time and East to complete each project.
- Raw materials or resources required for each business or each project.
Dimensions of a Project Identification-
Every project has three basic dimensions which are a) Inputs b) Outputs c) Social costs and benefits.Project identification cannot be complete without knowing its characteristics:-
- Inputs – This dimension of project identification tells us what a project or a business consumes like power supplier, manpower, raw materials, Energy, organisational setup, financial help and land cost.
- Outputs- This dimension of project identification tells us what a project or a business will generate after consuming all the inputs like the finished products, revenue, employment, goods and services.
- Social cost and benefits- This dimension of project identification tells us what a project or a business Has an impact on society. So it is essential to calculate what a society will have to Sacrifice to make benefits for a project or business.
The inputs to set up a project can come from different sources such as governmental agencies, credit and financial institutions and non-governmental organisations such as chambers of commerce and industry, inter-institutional groups.
Selecting Location for a project –
- Select the location Which is easily accessible to Railway, ports, highways, airports, roads.
- Ensure that the location is Easily accessible for clients, workers, technicians, buyers, suppliers and all the people who are connected towards the project.
- Availability of public transport can reduce the transportation cost so it is an important factor to keep in mind.
- Ensure the location has qualified and skilled workers.
- The cost of land and rents for a house should not be more as it may cost you the shortage of workers.
- Investigate the amount of local taxes.
- Evaluate the wage rate of that area so that you may not be in the loss situation and also the workers who are working in the project.
- Also understand the minimum wage requirement of a labour so that it may not create any hurdle afterways.
- Explore the infrastructure facilities of the particular location.
- The closer the location is to key customers and suppliers, the lower the transportation and logistics costs.
- Analyse the local market demand for your products or services.
- Evaluate the safety and security of the area by considering local crime rates and security measures.
- Use regulations to ensure the project can proceed without legal issues.
CONCLUSION-
Project identification therefore concerns itself with data collection and the compilation and analysis of economic data for the eventual purpose of locating possible opportunities for investment and development. Hence, project identification concerns the task of finding business opportunities that are feasible and promising. First of all, to grab the opportunities, an environment is to be analysed for perceiving the opportunities available, afterwards proper identification of the opportunities, it has to be done in the given environment. Then the best from the available can be selected. Identification of best opportunities should be done by tapping a wide variety of sources. Identification of a new project is not an easy job because the success of a project depends upon the idea of a project. There are different sources and methods which help in developing a wide range of ideas, such as the performance of the existing industries, price trends, availability of raw material and skilled labour, government policies and guidelines, new technological developments, trade fairs, and unfilled psychological needs, among others. While identifying the project, an entrepreneur has to face many problems. They may be internal like trusting outside consultants, project goals, and objectives, cost constraints, resource constraints etc., and external like troublesome procedures of finance, government policies, and regulations etc. Always keep the above parameters in mind
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