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What's the difference between a feasibility study and a business plan?

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Question added by Nuridin Islam Diab , Training Manager , Bbusinesss LLE
Date Posted: 2016/03/30
Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

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.

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

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.

Differences in feasibility study & business plan as below:

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.

Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

business plan use after feasibility study and path for ur work

feasibility study use to know are our data to start business it is enough and good or need enhance and change

 

د Waleed
by د Waleed , Management - Leadership-Business Administration-HR&Training-Customer Service/Retention -Call Center , Multi Companies Categories: Auditing -Trade -Customer service -HR-IT&Internet -Training&Consultation

In addition to the answers, I would like to simplify it in this way:

1. Feasibility focuses more on financial, revenues and returns that the project will generate

2. Business plan is about describing steps, strategies and other related activities  involved in setting up the business !

 

Thank You

 

A feasibility study is not the same thing as a business plan. A feasibility study, or business approach analysis, is a planning tool similar to a business plan. Hence, the feasibility study helps determine whether an idea or business is a viable option, a feasibility study is carried out to know if the business venture is worth the time, effort and resources. A feasibility study is filled with calculations, analysis and estimated projections while a business plan is made up of mostly tactics and strategies to be implemented in other to grow the business.

 

Thus, the business plan is developed after the business opportunity is created. None the less the feasibility study would be completed prior to the business plan or any business venture. Thereafter, the business plan then fully describes the business and its financial projections.

 

Sidrah Nadeem
by Sidrah Nadeem , Global Marketing Manager , Hill+Knowlton Strategies

I agree with Mr.Vinod's answer.

Ammar Shami MSc  CSE CME PMP
by Ammar Shami MSc CSE CME PMP , Business Development Director MENA , Boskalis

Feasibility Study focus on all information to empower " investor " to decide to go to the Project or not based on the profitability of the project. The business plan is an extension of the feasibility study with details how the operation will be managed and financed. The business plan is simply a plan of how we will run our business after the investor already decided to go to the business operation of the project.

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