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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.
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.
EmphasisFeasibility studies answer the question, “Will this work?” A business plan answers the question, “How will this work?”
Target AudienceFeasibility 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.
SectionsFeasibility 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.
VersionsFeasibility 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.
ImportanceA 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
Feasiblity study forms part of business plan.A formal business plan includes
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.
