Project selection means choosing the best project from among alternative proposals on the basis of cost-benefit analysis. It is a process to assess each project idea and select the project with the highest priority. It is the first important part of project portfolio management. Project selection methods help direct an organizations decision and weigh them against alternative projects.
Project selection starts from where project identification ends. After having some project ideas these are analyzed in the light of existing economic conditions, the government policy and so on. The entrepreneur analyses his strengths and weaknesses as well as opportunities/competitive advantages and threats/challenges offered by each of the Project ideas. It is best that you attempt out diverse methods, as in this technique you would be competent to make the best decision for your organization considering a broad range of factors rather than intent on just a few. On the basis of this analysis, the most suitable idea is finally selected to convert into an enterprise. So, we can see that SWOT analysis is used for selecting a project. As a project manager or owner, you will unavoidably have to make decisions concerning which projects to execute. As a team, you will require to suspiciously evaluate all of these contributing factors. It is always best to have a good plan from the inception, with a list of criteria to be considered and goals to be achieved.