In what way does a feasibility study differ from a business plan?

A feasibility study is designed to discover if a business or project is “feasible” or not. Before anything is invested in a new business venture, a feasibility study is carried out to know if the business venture is worth the time, effort and resources.On the other hand, a business plan is developed only after it has been established by the feasibility report that the business is worth investing. This simply means that a business plan is prepared after a feasibility study has been conducted.

 

A feasibility study report is filled with calculations, analysis and estimated projections of a business opportunity and its viability for investment. While a business plan provides tactics and strategies to be implemented in other to start, run and grow the business successfully.

The feasibility study – which both includes technical and economical works – is made on the basis and with reference to a preliminary rough idea; the main objective is to answer the question related to the possible realization (or not) of the project. It has basically internal purposes.

The business plan (which is frequently a consequence of the feasibility study) is both a technical and economical document; it summarizes planning and corporate management contents and has both an internal and external purposes (mainly towards potential investors and venture capitalists)

Feasibility study is to check whether project is feasible or not. It  consists  of  Factual Datas, Assumptions, Estimates, Forecasts, Demand-Supply Analysis, Viability of Project, Details about Goods or Services etc. It Shows earning potential  of  the  venture. It Include Forecasted Financial Numbers.It is generally for new venture.

On the other hand Business Plan is  plan, projections about the business for a year or  more years. Usually Business plan  consists  of Vision, Mission, Goal, SWOT,Business Development plan, Products, Marketing, Orgn.Chart-Team, Financial Projections & Numbers, Profit & Loss A/C, Balance Sheet, CAsh Flow, Capital Budget, Inventory Budget & Purchasing etc.It is  Agreed  Road  Map  of  Business with  periodical benchmarking, KPI, and  plan  for  each  participating  department / Divisions. It  helps  in  proper planning, sourcing & allocation  of  Resources  to meet  Corporate Goal.It is genarally for a runnning  business.

 

 

Business Plan Vs. Feasibility Study by Evangeline Marzec, studioD 

A feasibility study, or business opportunity analysis, is a planning tool similar to a business plan. The feasibility study is done to flesh out the possibilities in an initial business idea. The business plan then fully describes the business and its financial projections.

  Emphasis

Feasibility studies answer the question, “Will this work?” A business plan answers the question, “How will this work?”

Target Audience

Feasibility studies are for the entrepreneur's benefit, to determine whether it's worth proceeding with the business. Business plans are targeted at investors, lenders and future executives to explain how the business works.

Sections

Feasibility studies focus on the size of the potential market, availability and prices of suppliers and distributors, and the abilities of the entrepreneur. Business plans also include operations plans, marketing strategies, location, management team and in-depth financial projections.

Versions

Feasibility studies usually compare several possible scenarios for how a business might work. Business plans describe a specific business, but include different sections depending on which parts of the business are interesting to the audience.

Importance

A business will probably fail if its feasibility study is done poorly the first time. Business plans, however, will go through many iterations and are designed to evolve to describe an ongoing business.

feasibilty study to define the return on invsetment (ROI) from an idea while business plan to define the implementation of the idea in terms of marketing paln, budjets , financial plan 

Differences between Conducting Feasibility Study and Writing a Business Plan 1. A feasibility study is carried out with the aim of finding out the workability and profitability of a business venture. Before anything is invested in a new business venture, a feasibility study is carried out to know if the business venture is worth the time, effort and resources. On the other hand, a business plan is developed only after it has been established that a business opportunity exist and the venture is about to commence. This simply means that a business plan is prepared after a feasibility study has been conducted. 2. A feasibility report is filled with calculations, analysis and estimated projections of a business opportunity. While a business plan is made up of mostly tactics and strategies to be implemented in other to start and grow the business. 3. A feasibility study is all about business idea viability while a business plan deals with business growth plan and sustainability. 4. A feasibility study report reveals the profit potential of a business idea or opportunity to the entrepreneur, while a business plan helps the entrepreneur raise the needed startup capital from investors. I hope this few words have been able to point out the key differences between feasibility study and business plan. I feel it’s also worthwhile to know that a feasibility report can readily be converted to a business plan. To achieve this, all you need to do is incorporate your business strategies and tactics into the feasibility report; and you are good to go.

Feasiblity study forms part of business plan.A formal business plan includes

• Scope,Nature and Vision
• SWOT Analysis
• Risk Assessment
• Feasiblity,Sustainibility studies
• Studies on micro & macro environment

Feasibility Study is a super set while Business Plan is a subset

Feasibilty Study answer 'Why','Why not' whereas Business Plan answers 'What', 'How'

Feasibility Study is done prior to a Business plan. Feasibility study may result in a business plan or a business case however the reverse is not true

Business plan Is the steps to achieve the goals from a to z .

Feasibility is a study to evaluation for any project, about profit or revenue for years of investment 

Feasibility study is important step before accept any project.

Business plan is a steps after accept the project . 

the point of difference Between them,The feasibility study is the study precedes the acceptance of any project, but the action plan is to conduct and action steps after the acceptance of the project 

Regards 

A feasibility study is all about business idea viability while a business plan deals with business growth plan and sustainability.

In a nut shell, a feasibility study is find out if a new project or investment is viable. Example :- to develop a new block of office or residence. A feasibility study should point out

1. if the project is viable. If it is viable how much is the return to the stakeholders

2. which type of development should take place that will provide maximum return, office block or residence.

 

A business plan is the future planning on how to take your business foward. A business plan is for new or an ongoing activity. Annual budget is part of the business plan. In a business plan, should chart the steps to be taken. Example :-  opening new branches, when and where.

 

After a feasibility study is executed, and if the stakeholders decide to proceed with the investment / project, a business plan need to be in place on how to implement the decision.