Key project assumptions should be determined at the initiation of a feasibility study. Usually an assumption is thought of as something that is taken for granted, but in the current context assumptions provide the basis for the project and therefore need to be carefully thought out and developed. Since the group cannot analyze every variation of a project, it must provide boundaries within which the study will be carried out. The consultant, if one is being used, can assist in the development of assumptions by providing objective knowledge and expertise. He/she should also ask the group difficult questions to narrow the range of assumptions and make sure they are as accurate as possible, as well as justifiable.

Figure 5 provides four questions and some clarifying statements that a steering committee or group should address as it develops assumptions for the feasibility study.

The steering committee or group may not be able to provide all of the required detail for each of the assumptions that need to be developed, so again, using an experienced practitioner/consultant to help research and develop some of the assumptions may be necessary. Furthermore, some of the assumptions will have more than one option to study. That's where sensitivity analysis will come into play. Other questions that help determine proper assumptions might arise as well, depending on the type of project. It is up to the steering committee and those conducting the study to explore all avenues when determining the assumptions needed for a full analysis in a study.

Considering more than one potential business structure and/or alternative business process is not a problem at this stage. However, it is important that an analysis be conducted in the feasibility study for each identified project scenario so that the steering committee or group can assess them.