The first step is to select a teammate and pick a topic that you would enjoy working. Start thinking about possible topics well before the project course begins.
Consider ideas that sound interesting because of a desire to know more about a subject, a desire to learn how to use a particular software package, or a goal of working professionally in this area after graduation. Perhaps you would like to investigate a research idea presented in one of your classes.
Whatever the reason, the project topic should be something that you and your teammates choose rather than something assigned to you. It is much more enjoyable to put in time on a project if it is yours rather than someone else’s.
You can think of developing a system or application that is applicable in real life situation. For this you can find a company, and develop a useful software for them. Chances are, you might be hired once you finish your studies.
Start by reading technical books, professional articles, or interesting Web pages. Talk with faculty and other professionals—perhaps people you are working with for Industrial Training. Your goal is to have a well-defined problem statement ready for design as early as possible.