There are many occasions when companies and individuals tend to mix up a feasibility study with a business plan. Though there are some who argue that they are indeed the same, but some others argue they are surely not the same.
However, we must point out that the process involved in developing a feasibility study is similar to a business plan.
- A feasibility study aims at finding out the workability and profitability of a business venture. Even before any investments are made in a new business venture, a feasibility study is carried out to know if it would be worth the time, effort and resources. On the other hand, a business plan is developed once it is firmly known that a business opportunity indeed exists. Simply put, it means that a business plan is prepared after a feasibility study has been conducted.
- Calculations, analysis and estimated projections make up a feasibility study while a business plan is made up of tactics and strategies that need to be implemented for a business to grow.
- While the feasibility study explores the viability of a business idea, a business plan deals with business growth and sustainability.
Understand the difference between feasibility study and business plan. Feasible study is converted into business plan in the latter stage. Where feasibility study is more of a estimated projections, business plan is strategies than has to be implemented. Both go hand in hand. You will fall in trouble without each others support in your business. Therefore you need to plan well for your business.