Feasibility Vs. Business Plan

feasibility vs business plan

Feasibility Vs. Business Plan

The difference between feasibility study and business plan are a thin line. Though there are many similarities, the differences are as detailed below:

    FEASIBILITY

  • First step before anything is invested. Research oriented analysis of business opportunity prior to business plan.
  • Talks all about initial business idea and its viability.
  • Look objectively at the strengths, weaknesses, opportunities and threats of your proposed business venture.
  • Answering the question if the business venture is worth the time, effort and resources.


                                              
       

  • Feasibility focuses more on a business venture’s objective,opportunity analysis, workability, financial aspects, expected revenues, profitability and returns.
  • Study of the idea with potential market, calculations, analysis and estimated projections.                              
             
  • Helps to reveal the profit potential of a business idea or opportunity to the entrepreneur.                            
  • Studies determine the risks associated with the idea.                         
  • May have to hire outside professionals with relevant proposed business skills and expertise who will conduct thorough studies.

    BUSINESS PLAN

  • Prepared after business opportunity is created by conducting feasibility study.
                                             
  • Talks about business growth plan and sustainability.
  • Provides detailed financial forecasts, marketing strategies and information on how you will start and grow your business.
  • Answering the question how the venture is going to commence after business opportunity is established by feasibility study.

        
     

  • Business plan is about describing steps, methods, strategies, proposed organizational structure and other related activities  involved in setting up the business.
  • Study of tactics and strategies to be implemented in order to grow the business.

           

  • Helps the entrepreneur to raise the needed startup capital from investors or finance from banks/financial institutions.  
  • Explain how management will deal with the risks so that it will make a profit.
  • May be written by employees or experts who has management experience of such business.                                        


Feasibility / Business Plan Gives a Road Map To Drive Your Business.