5 tips for appraising your scheme
Appraising a scheme is a vital first step in the development process, but before you pass a scheme make sure you have considered these 5 tips, to set you up for success. Some may seem obvious but you’d be surprised how often they are overlooked.
1. Meets the Development Strategy
The scheme must also meet the strategy which has been outlined. Have too many changes been made in order to make the scheme viable? If so, it may no longer meet the objectives originally set
2. Is the necessary grant/subsidy available
So your scheme meets the strategy and generates the best NPV outcome, but can it be financed?
3. No adverse affects on the business plan
All appraisals should be in line with the organisation’s objectives and help achieve the goals, whether these are financial, social or strategic.
4. Carries acceptable risk
Like with anything the rewards should always exceed the risks. Therefore the risks must be identified, managed and contingencies put in place.
5. Has an acceptable cost/value ratio
The cost of the scheme and its implementation including resources must not outweigh the benefits. Therefore all costs should be justifiable.
Submitting the best schemes for approval is important. As a solid appraisal can help mitigate some of the risks involved with developing. SDS ProVal is the ultimate financial viability tool that ensures a profitable and successful scheme.