1Q.Project Identification and Selection.

Introduction
Project identification and selection means finding new project ideas and choosing the best
one to start. A good project must be useful, possible, legal, and profitable. The following
points help in selecting the right project.

Understand Organisational Objectives

The project must match the goals of the company.
Example: If a company wants to grow in the health sector, the project should be health-related.
This ensures the project supports the company’s mission.

Market Analysis
Before selecting a project, study the market demand, competition, and customer needs.
This tells us if people will buy the product or service we plan to offer.

Risk Assessment
Every project has some risk.
We must check for risks like money loss, delays, or failure.
This helps us plan for problems in advance.

Resource Availability
We must check if we have enough money, staff, machines, and materials.
If resources are missing, the project may not succeed.

Stakeholder Analysis
Stakeholders are people who are affected by the project, like:

● Customers

● Employees

● Government
We must understand their needs and keep them informed.

Feasibility Studies
This is a detailed study to check if the project is possible. It includes:

● Market Feasibility: Will people buy the product?

 ● Technical Feasibility: Do we have the tools and skills?

● Financial Feasibility: Can we earn more than we spend?

Cost-Benefit Analysis
We compare the cost of doing the project with the expected profits or benefits.
If the benefits are more than the costs, the project is a good choice.

Environmental Impacts

The project should not harm the environment.

We should check pollution levels, waste control, and energy use.
Eco-friendly projects are better for society.

Legal and Regulatory Compliance

The project must follow all laws and rules, like:

● Labour laws

● Tax rules

● Safety laws
If not followed, the project may be stopped or fined.

Flexibility and Adaptability

The project should be able to change easily if the market, technology, or customer needs
change.
Flexible projects can last longer and survive tough times.

Conclusion
Project identification and selection is not just about ideas. It is about choosing a project that is
safe, useful, legal, profitable, and matches the company’s strengths. The points above
help in making the right decision for a successful project.

2Q. Common Sources of New Project Ideas

To start a new project, companies need fresh and useful ideas. These ideas can come from
inside the company or from outside sources. Here are some of the common and easy ways
to find new project ideas:

Internal Brainstorming Sessions

Team members from the company sit together and share ideas.
This helps everyone to think together and come up with creative project ideas.

Customer Feedback
Customers often tell what they like or dislike.
By listening to their opinions and problems, companies can get new ideas to improve or build
something useful.

Market Research
Companies study the market demand, trends, and customer choices.
This gives ideas about what is missing in the market and what can be made.

Employee Suggestions
Employees know the company well and may have smart and simple ideas for new projects.
They can suggest improvements or new services.

Competitor Analysis
By watching what other companies (competitors) are doing, we can get ideas.
We can learn from their success or mistakes and think of better ways.

Technological Advancements
New technologies like software, tools, or machines bring new chances.
These can help start modern and smart projects.

Industry Trends
Changes happening in the industry (like fashion, food, or tech) can guide new ideas.
Following trends helps in creating projects that people are interested in now.

Strategic Planning
When a company plans for the future, it can find areas where new projects are needed.
These ideas usually help the company reach its long-term goals.

Cross-Functional Collaboration
People from different teams (like sales, marketing, and IT) work together.
They bring different views and skills, which helps in creating better ideas.

Customer Journey Mapping

This means studying how a customer uses a product or service from start to end.
It helps find problems or gaps, which can lead to new project ideas.
External Partnerships
Working with other companies or experts can bring new ideas and fresh thinking.
It helps solve problems in better ways.

Workshops and Hackathons

These are short events where people come together to create ideas quickly.
They are fun and useful for finding new and unique project ideas.

Conclusion
Good project ideas can come from inside the company or outside sources like customers,
market trends, and technology.
By using all these methods, companies can find the best ideas to start useful and successful
projects.

3Q. Typical Sources of Financial Resources for Projects

To start or run a project, a company needs money, which is called financial resources. There
are many ways to get this money. Below are the common and simple sources of project funding:

Internal Funding
The company uses its own money or savings to start the project.
This is safe, and no loan or outside help is needed.

Bank Loans
Banks give loans with interest for business projects.
The company has to pay back the money over time with extra charges (interest).

Grants
Sometimes, government or other groups give free money to support useful projects.
This money is called a grant and usually does not need to be paid back.

Venture Capital
These are big investors who give money to new businesses with big growth ideas.
They give money in exchange for a share in the company.

Angel Investors
Angel investors are rich individuals who give money to small or start-up businesses.
They also get a small part of the company in return.

Crowdfunding
In this, many people give small amounts of money online to support a project.
It is useful for creative or social projects.

Government Funding
Governments often support projects by giving loans, subsidies, or help for special sectors like
farming, health, or education.

Corporate Sponsorship
Big companies sometimes give money to support projects.
In return, they get advertising, promotion, or other benefits.

Partnerships and Joint Ventures

Two or more businesses join hands and share money, work, and profit.
They fund the project together and benefit together.

Equity Financing
The company sells part of its ownership (shares) to raise money.
The people who buy shares become owners or shareholders.

Bonds
The company can raise money by selling bonds.
A bond means the company promises to pay back the money with interest after some time.

Conclusion
A project needs money to begin and grow. Companies can get this money from inside (like own
savings) or outside (like banks, investors, or the government).
Choosing the right funding source helps the project succeed with less risk.

4Q. Determine a Project’s Break-Even Point

Introduction
The break-even point is when a project does not make profit or loss. It is the level where total
cost = total income.
This point helps businesses understand how many products or services they need to sell to
cover all their costs.
Knowing the break-even point is very useful for planning and decision-making. Identify
Fixed and Variable Cost
Start by listing all the project costs:
 ● Fixed costs stay the same (like rent, salaries).

● Variable costs change depending on how much you produce (like raw materials).

Calculate Total Fixed Costs

Add all the fixed costs together.
These are the costs that you must pay even if nothing is sold.

Determine Variable Cost per Unit

Check how much it costs to make one unit of your product or service.
This includes cost of materials, labor per item, and packaging.

Determine Selling Price per Unit

Decide the price at which you will sell one unit.
This price must be more than the cost to make a profit.

Calculate Contribution Margin per Unit

This is the money you earn from each unit after subtracting its making cost.
It helps in finding out how much each sale helps cover your fixed costs.

Calculate Break-even Point in Units

This tells you how many units you need to sell to cover your fixed costs.
After selling this number, you start making profit.

Calculate Break-even Point in Sale Revenue

This tells you the total amount of money you must earn from sales to reach the break-even
point.

Graphical Representation
Break-even can also be shown using a graph.
The point where your cost line and revenue line meet is the break-even point.
It makes things easier to see and explain.

Sensitivity Analysis
Try changing the price or cost to see how it affects your break-even point.
This helps you be ready if something changes in the future.

Scenario Analysis
Think of different situations:
 ● What if sales are high or low?

● What if material prices increase?

This helps in making good decisions even during uncertain times.

Review and Validation

Go through all your numbers again to check for mistakes.
Make sure everything is correct before using your break-even data for planning.

Monitoring and Adjustment

Keep watching your sales, prices, and costs.
If anything changes, update your break-even calculation to stay on track.

Conclusion
Finding the break-even point helps you know how much you need to sell to avoid loss.
It gives a clear idea of cost control, sales planning, and risk management.
Every project should use break-even analysis to make better decisions and grow successfully.