Need Identification

Construction project need arises for various reasons. Some of these need include development of nation's infrastructure, setting-up of an industry, expanding or diversifying the existing activity, meeting the need of the society, investing in real estates and so on. Such identification has to be done with reference to the corporate strategy and country's development strategies keeping in view, the long time economic policy, so that, when completed, it fits well into the total economic system or development networks, capable of being fully utilized. The Central Government's Planning Commission and Departments of Economic Affairs and Industrial Development give guidance in these matters. Even State Government has industrial development organisations set up for guiding and assisting entrepreneurs. 

In business, the key to success lies in getting into the right business at the right time. Identification of such opportunities requires : 

• Generation of Ideas - The search for promising project ideas is the first step towards establishing a successful venture. Barring truly new ideas which are based on significant technological breakthroughs, most of the project ideas involve combining existing fields of technology or offering variants of present products/services. SWOT Analysis can facilitate in stimulating the flaw of ideas. 
• Monitoring the Environment - Basically, a promising investment idea enables a firm (or entrepreneur) to exploit opportunities in the environment by drawing on its competitive strengths. 
• Corporate Appraisal - A realistic appraisal of' corporate strengths and weaknesses is essential for identifying investment  opportunities which can be profitably exploited. The broad areas of corporate appraisal and the important aspects to be considered under them include market image, market share, condition and capacity of plant and machinery, location advantage, track record, cash flows and liquidity and dynamism of tbp management. 

A realistic SWOT appraisal of corporate strengths and weaknesses is essential for identifying investment opportunities which can be profitably exploited.