feasibility report vs business plan

10 Feasibility study and business plan differences you should know

by Naiyer Jawaid | Nov 8, 2021 | Development , Real Estate | 5 comments

Feasibility study and business plan differences are subtle. In this post we will discuss 10 differences will help you to evaluate and differentiate between a feasibility study and a business plan.

Do you know what is a feasibility report? Do you know what is a business plan? Can you easily differentiate between a feasibility report and a business plan?

It’s easy! Just read out through the article and it will all be easy.

Let’s start by learning about a feasibility report:

A feasibility study is a formal document that assist in the identification and investigation of a proposed project. We can identify the project's weaknesses and strengths with the support of a feasibility study report, which saves us time and energy. We can determine whether the suggested idea will be lucrative and practicable in the future.

Before investing in a project, it is critical to determine if the project will be beneficial in the long run. The organization also needs to know how much the project will cost. Overall, a feasibility analysis indicates whether the firm should invest or continue with the project.

You should also like to read When to do feasibility study?

Now let us learn about business plan:

A business plan is a formal document that contains the goals/ objective of the business, the time in which the goal will be completed and the strategies that can be adopted to reach the specific goal.

A business plan is a necessary document for every new firm to have in place before it can begin operations. Writing a credible business plan is typically a requirement for banks and venture capital companies before contemplating granting funding to new enterprises.

It is not a smart idea to operate without a business strategy. In fact, very few businesses can survive for long without one. There are many more advantages to developing and keeping to a strong business plan, such as the ability to think through ideas without investing too much money and, eventually, losing money. Business plans are used by start-ups to get off the ground and attract outside investors.

A feasibility study is used to assess if a business or a concept is viable. After the business opportunity has been identified, the business strategy is produced. “A feasibility study is carried out with the goal of determining the workability and profitability of a company venture. A feasibility study is conducted before any money is committed in a new business endeavour to see whether it is worth the time, effort, and resources.

Similarities between a Feasibility study and a business plan

It's essential to analyse the similarities between a feasibility study and a business plan because they're both implemented altogether in same ways to help you build a lucrative company. The following are some of the similarities between the two documents:

Time: Both the reports are completed before the business begins and can be repeated afterwards to decide the next stages for new concepts.

Input: Both Feasibility report and the Business plan include input from a variety of people or departments with a variety of talents.

Format: Both report formats incorporate other documents that are gathered in order to create the report.

Components: Examining the target market, market circumstances, and financial expenses are some of the topics examined.

Use: Both may be displayed to potential investors and can assist the organization's management in making choices.

Organizations uses a business plan and a feasibility study as analytical and decision-making tools.

Although the three tools can be used in conjunction with one another in decision-making processes, they each have their own strengths and weaknesses, and they appear to target and address separate processes.

You might also like to read How to write a feasibility study report?

Now let us evaluate the difference between feasibility report and a business report-

A feasibility study is conducted to determine the viability and profitability of a business endeavour. A feasibility study is conducted before any money is committed in a new business endeavour to see whether it is worth the time, effort, and resources.

A business plan, on the other hand, is created only when it has been determined that a business opportunity exists and that the endeavour is about to begin.

A feasibility report is the first step and after that a business plan is made to be implemented, without feasibility report a business plan cannot be made.
A feasibility study contains computations, research, and projected financial forecasts for a company possibility. A business plan, on the other hand, is mostly comprised of tactics and strategies to be applied to establish and expand the company.
A feasibility study is concerned with the viability of a business concept, but a business plan is concerned with the development and sustainability of a company.
A feasibility report informs the entrepreneur about the profit potential of a company concept or opportunity, whereas a business plan assists the entrepreneur in raising the necessary start-up cash from investors.
Key components of a feasibility study and a business plan
A business plan does not include the description of the sales methods used, such as distribution agreements, strategic alliances, and the amount of involvement with partners, as well as the payment terms, warranties, and other customer support.

But a feasibility report includes all the sales methods, strategies, alliances to payment and customer support.

Feasibility report contains:
Assists in cost estimation, describe the production site, required inputs, and sourcing region.
Physical description of the factory, including machine, capacity, warehouse, and supply chain, is necessary.
Indicate if the area used for production is rented or owned. This will have an impact on the financial forecast.
Information regarding the manufacturer's capacity, order details, price, and so on, if manufacturing is outsourced. To aid in cost estimation, describe the production site, needed inputs, and sourcing location.
A physical description of the factory, including machine, capacity, warehouse, and supply chain, is necessary.

But a business plan does not contain anything related to production and operations, but a business plan contains all the information related to management.

A poorly written business plan – poor projections, strategies, analysis, business model, and environmental factors, among other things – can be easily adjusted during business operations, but this cannot be said of a feasibility study because an incorrect conclusion in a feasibility study can be costly — it could mean launching a venture with little chance of survival or approving a proposal that wastes the company's human and financial resources.
A business plan presume that a company will prosper and lays out the procedures needed to get there. Those in charge of conducting a feasibility study should not have any predetermined notions regarding the likelihood of success. They must maintain as much objectivity as possible. They do research and allow the facts to lead to the study's conclusion. If the study concludes that the idea is viable, some of the findings, such as market size predictions, may be incorporated in the company's business plan.

You should also read What is land development feasibility study?

These 10 differences will help you to evaluate and differentiate between a feasibility study and a business plan.

Feasibility study may appear to be like the business plan in many respects. "A feasibility study may easily be transformed to a business plan” but it is crucial to remember that the feasibility study is completed prior to the endeavor. The business plan should be thought of in terms of growth and sustainability, whereas the feasibility study should be thought of in terms of concept viability.

This is all you need to know and understand about feasibility study and business plan.

Get ready to apply your knowledge in the real words with lots of success.

You might also like to explore below external contents on feasibility study :

What Is a Feasibility Study? – Types & Benefits
Best 8 Property Management Software
FEASIBILITY STUDIES & BUSINESS PLANS

Hope you enjoyed this post on feasibility study , let me know what you think in the comment section below.

Are you someone involved with real estate feasibility?

We are excited to launch the next generation of real estate feasibility software to help you manage your development projects with ease.

This is a very good piece of writing. When you have a concept for a company but want to be sure it’s a good idea, you do a feasibility study.

It was very helpful. Thank you so much!

Appropriately timed! A company’s future operations are laid out in great detail in the company’s business plan. Once you’ve done your feasibility study, you’ll know whether or not the proposal has merit. The next step is to lay out your goals, whether financial and otherwise, as well as the strategies you want to use to attain them and the organisational structure you envision.

Prior to the company opening, both are undertaken, and may be repeated again in the future to identify the next steps on new ideas that may arise.

Great Content.

Submit a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed .

Follow Us On

Latest Posts

Difference Between Feasibility Study and Business Plan

Many people don’t know that there is a difference between a business plan and a feasibility study.

Frequently, clients reach out seeking a feasibility study, but after an in-depth conversation, it becomes evident that what they truly require is a comprehensive business plan. In this article, I’ll clarify this common misconception and provide a clearer understanding of the distinction.

So let us start with the first one, which will give us a brief overview of what a business plan and a feasibility study is all about

Table of Contents

What is the Difference Between Feasibility Study and Business Plan

Business plans and feasibility studies are vital business tools for analysis and for making business decisions. However, a feasibility study is not the same thing as a business plan because a feasibility study gives a conclusion or recommendation that would be completed prior to developing the business plan.

Feasibility Study

A feasibility study is done to determine whether a proposed business has a high enough probability of success that it should be undertaken. A feasibility study is carried out first in order to know if the business will be viable before venturing into it. Before a company can invest in a business or launch a new product, a feasibility study is done to determine if there will be a return on investment.

According to Rochester.edu, a feasibility study can be defined as “a controlled process for identifying problems and opportunities, determining objectives, describing situations, defining successful outcomes, and assessing the range of costs and benefits associated with several alternatives for solving a problem.”

It can also be used to make decisions about whether to launch a new product for an existing company or enter a new market. Feasibility studies are sometimes termed cost-benefit analyses because the projected costs of the project are compared to the expected benefits to yield a conclusion.

For instance, imagine that you have been an instructor in a company that provides IT training and certifications in the USA and you want to come to Africa to impact the knowledge by starting a new business and even adding training like IT Certification Practice Test Dumps , but you are faced with the big question, “Would my business fly?”. Is there a market for my services?

In this situation, the best decision is to conduct a feasibility study to determine if those IT programmes have an established market. If they are a company that needs interns trained by your company.

Business plans are guidelines for carrying out actions that the company’s management has already determined to be feasible. So a business plan is like a roadmap for your business that outlines goals and details how you plan to achieve those goals.

Business plans map out the direction a company intends to take to reach its revenue and profit objectives in the future. They are a compilation of numerous decisions made by the management team about how the company should be run. A business plan is done after a feasibility study has been carried out. If the recommendation of the feasibility study is negative, then there will be no need to venture into the business. Then, if the feasibility study says the business will be feasible, a business plan is developed, which will then map out plans and strategies to adopt in order to achieve business goals, including revenue generation, market penetration, customer acquisition, marketing, and sales strategies, among others.

A business plan can be done for internal or external use. The internal use of a business plan is for the management and staff of the company, while the external use is for shareholders, investors, bank loans, and customers.

Main Purpose of a Business Plan and a Feasibility Study

In short, a feasibility study gives a conclusion or recommendations, while a business plan gives a roadmap.

The feasibility study helps determine whether an idea or business is a viable option. Therefore, a feasibility study is done first before investing a dime in the business. Before considering approaching investors, you must have done your research to know that the business is feasible before taking any decision. That is why a feasibility study gives a conclusion or recommendations.

A business plan will map out the roadmap and strategies to achieve your business goal because a business plan assumes a business is viable and presents the steps necessary to achieve success. If you are looking forward to approaching an investor or trying to get a bank loan, what you need is a business plan. Some investors might request for a feasibility study before the business plan

Outline of a Business Plan and a Feasibility Study

Below is the outline of a business plan:

Executive Summary
Business/Company Overview
Products/Services
Market/Industry Analysis
Operation Plan
Management/Personal plan
Sales Forcast
Financial Plan
Appendices and Exhibits

A good outline for a feasibility study includes:

Introduction
Product or Service
Market Environment
Competition
Business Model
Market and Sales Strategy
Production Operations Requirements
Management and Personnel Requirements
Regulations and Environmental Issues
Critical Risk Factors
Financial Predictions Including: Balance Sheet, Income Statement, Cash Flow Statement, Break Even Analysis, and Capital Requirements

Challenges of a Business Plan and a Feasibility Study

Looking at both the business plan and feasibility study, you will discover that both attempt to predict future outcomes using assumptions about what is likely to happen in the business and the business environment, which include government policies, the market, competition, and risk, among others. Any poorly done feasibility study can lead to a costly mistake. If a business is not viable and the recommendation says it will be viable, the end result will not be palatable. This will affect the business plan and the operation of the business adversely.

A poorly done business plan—poor projections, strategies, analysis, business model, and environmental factors, among others—can easily be adjusted in the course of running the business, but the same cannot be said of a feasibility study because, in a feasibility study, an incorrect conclusion can be costly—it could mean launching a venture that has very little chance of surviving or approving a project that wastes the company’s human and financial resources.

If you need a standard business plan, check out the list of Business Plan we have

Do you want us to develop a unique business plan for you, Check out our business plan service page

I would love to hear your thoughts. Kindly use the comment box below to leave your comment.

Thank you for reading this post, don't forget to subscribe!

About The Author

5 thoughts on “Difference Between Feasibility Study and Business Plan”

This is beautiful. Thank you for sharing this informative article by shading more light on the two.

I’ve been planning to hire a feasibility analysis service, so I’ll have an idea, whether my candle business is feasible. I agree with you that this must be done first before approaching the investors. It is also true that an incorrect conclusion in the feasibility study could be costly.

It’s inevitable! It helps you to make the right decision.

My business plan is ready but I will like you to review it

Alright, You can reach out to me on 07031542324 or email me at [email protected]

Leave a Reply Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed .

Business Plan Vs. Feasibilty Study

by Brian Hill

Published on 1 Jan 2021

Business plans and feasibility studies are analysis and decision-making tools used by companies. Feasibility studies are used to determine whether a proposed action has a high enough probability of success that it should be undertaken. Business plans are blueprints for implementing actions that have already been deemed feasible by the company's management.

Many Decisions vs. One

Business plans map out the direction a company intends to take to reach its revenue and profit objectives in the future. They are a compilation of numerous decisions made by the management team about how the company should be run. Feasibility studies are designed to provide guidance for one decision. Feasibility studies are often done to decide whether to start the business or not -- whether the likelihood of success is high enough to make the financial risk worthwhile. They can also be used to make decisions about whether to launch a new product in an existing company, or enter a new market -- any activity where there is a question about whether the company should take the action or not. Feasibility studies are sometimes termed cost/benefit analyses because the projected costs of the project are compared to the expected benefits to yield a conclusion.

Although the content and emphasis of business plans vary by company and industry, all plans have many elements in common. They describe the products or services the company intends to sell, why customers need these products or services, the target customers, how the company intends to reach them through its marketing strategy, the background and capabilities of the management team, and risk factors the company may face. They also contain information on projected revenue and profit. Plans contain these specific elements because many times they will be read by investors or other people outside the company, and these individuals want to see very specific information in a plan. Feasibility studies may have some or many of the same elements of a business plan, including a description of the human resources required and financial projections, but all the information leads to a conclusion or recommendation.

Differences

A business plan assumes a business is going to succeed and presents the steps necessary to achieve success. Those in charge of conducting a feasibility study should not have a preconceived view about whether success will be attained. They must be as objective as possible. They conduct research and let the facts lead to the ultimate opinion given in the study. If the study's conclusion is that the project is viable, some of the research done may be included in the company's business plan, such as projections of the size of the market.

Both business plans and feasibility studies attempt to predict future outcomes using assumptions about what is likely to happen in the business environment -- the economy and the company's competition. But this environment is always changing and the assumptions a company uses in its projections of revenue or profit may prove to be incorrect. Companies find that some of the strategies in their plan do not work to the degree the business owner expected, and have to be adjusted. In the case of a feasibility study, an incorrect conclusion can be especially costly -- it could mean launching a venture that has very little chance of surviving or approving a project that wastes the company's human and financial resources.

This site has stepped out of a

If you're the site owner , contact your hosting provider., if you are a visitor , please check back soon..

Starting a Business | What is

What Is a Feasibility Study for Small Business?

Published July 17, 2020

Published Jul 17, 2020

WRITTEN BY: Blake Stockton

This article is part of a larger series on Starting a Business .

A feasibility study for small business is an in-depth research and financial analysis that recommends if one should pursue a business idea or product. The study contains estimates of items such as income, costs, obstacles, and technical challenges. Typically, a feasibility study for a small business costs a minimum of $5,000. However, they can cost up to $100,000 for businesses that have a multimillion dollar startup budget.

Throughout this article, we discuss what a feasibility study is and how it differs from a business plan, so that you can decide whether or not you really need one for your business.

How the Feasibility Study Works

Usually, businesses conduct feasibility studies to determine if their idea or product is worth pursuing. It’s one of the more complicated and costly ways to test a business idea.

Depending on the idea’s complexity and scope, a study can take weeks or months to prepare. With the help of templates or programs, business owners can conduct feasibility studies on their own. However, because of the in-depth research and complicated financial projections, they often hire an expert to create the study.

Feasibility studies do not determine the final decision but present all the evidence and make a strong recommendation on whether or not it’s best to move forward. The entrepreneur, stakeholders, and/or other authorities decide whether to go ahead with the business idea or product, using the study as a guide.

Who Should Get a Feasibility Study?

Small business entrepreneurs use a feasibility study to prevent the costly mistake of launching an unsuccessful business, product, or project. You can use a study to help make strategic decisions, such as determining whether you should:

Start a new business
Open a new store or factory
Change product lineup or approach
Expand to a new area or market
Acquire another company
Make a significant investment in new technology
Enter an already crowded or competitive market segment
Invest personal capital into a project

Feasibility Study vs Business Plan

A feasibility study often comes before the business plan, because the information and data uncovered in the study are included in the business plan. Plus, if the feasibility gives a recommendation not to move forward, you may want to rethink your business idea or product altogether before creating a plan.

What Should Be in a Feasibility Study?

Depending on the project or business, you will use each of the aspects below to a certain degree. The feasibility study’s organization may vary depending on its focus—you may have a section for each of these topics:

Executive Summary: This summarizes the project and business. The ultimate conclusions are outlined here. It should be about a page long.
Demand: A marketing analysis determines the need for your product or business in the industry you want to sell. Even if you have a brick-and-mortar business, you should consider online aspects as well.
Technical issues: What tool, hardware, or software do you need to create your business or product? Will you create the tech, buy it, or rent it? This section also includes the facilities, including layout, shelving, offices, and manufacturing space.
Logistics issues: This piece outlines vendors, pricing schedules, exclusive agreements, and franchised product contracts. It may include getting supplies and delivering finished products or working online elements like an ecommerce site. Location issues can be placed here.
Legal concerns: Do you need permits? Are there regulations or prohibitions to consider? What about environmental, historical, or legacy issues to negotiate?
Marketing strategy: This section will define the target market as specific as possible: How you will meet their needs, and how you will target them?
Required staffing: How many employees will you need? What are their qualifications? What is the typical salary in your area? You can include a sample organizational chart along with a corresponding discussion of who among your current employees may change jobs to fill new positions.
Scheduling: This section includes milestones for financials as well as physical projects and a timeline for completion.
Financials: In addition to anticipated expenses and potential profits, this section will include an opening day balance sheet that lists total assets and liabilities on your business’s first day. This financial data gives you an indication of your return on investment (ROI).
ROI: If you don’t see a return on investment, it makes no sense to start or expand your business. A feasibility study estimates when you’ll earn profits and what or how much they may be.
Analysis: You will see discussions answering questions like: Does it seem realistic? Are the sources strong? Are there outlying data points to consider? Also, analyze potential risks: What are the worst-case scenarios, and how likely are they?
Recommendations: This gives a go or no-go recommendation and breaks down specific suggestions based on the main elements. If the project is not feasible, it may offer alternatives.

Cost of a Feasibility Study

A feasibility study for small business takes an average of 60 to 90 days to complete and may cost anywhere from $5,000 to $10,000. As a general rule of thumb, a feasibility study will cost 1% of the business’s total cost to open or a product’s cost to build. So if you’re requesting a feasibility study for a complicated business with millions in startup costs, be prepared to spend more than $10,000.

The cost is also determined by the study’s depth, the tools needed to conduct it—survey software, focus groups, and lawyers—and the scope of the project. For example, a study to determine if a business should bring manufacturing back to the US from overseas will cost more than a study on whether to open a restaurant.

Here are costs for various feasibility study projects:

Who Provides Feasibility Studies?

You may find it challenging to find a firm that only produces feasibility studies. Often, a market research firm will provide feasibility studies in addition to other services. For example, Drive Research in Syracuse, New York, offers a host of market research services, including feasibility studies .

There are also business plan writing companies that specialize in feasibility studies. Wise Business Plans provides a study with in-depth market research and industry analysis.

If you’d like to connect one-on-one and choose your own independent market researcher for a feasibility study, you could look to the freelancer platform Upwork . You can find several market research experts and analysts that may be interested in tackling your specific project. Upwork is an excellent platform to find market researchers, because you can review a freelancer’s past work to see if they’d be a good fit.

Tips and Best Practices to Follow When Purchasing a Feasibility Study

Conduct a preliminary analysis first: Before paying thousands of dollars for a feasibility study, do a minor check to ensure there are no insurmountable technical, legal, or financial obstacles to the business idea or product.
Involve stakeholders: Before, during, and after the study, keep people relevant to the business in the loop. Get their input, suggestions, and feedback.
Review research: Review the feasibility study data and see if you come to a similar conclusion as the research analyst. You may also want to pay for a second expert’s opinion on the final determination.
Assess your current company or situation: Before making any decision on a business idea or product, consider your own strengths, weaknesses, and financial situation in the final decision to move forward or not.

Frequently Asked Questions (FAQs) for a Feasibility Study

Is it better to hire out for a feasibility study.

Most likely, yes. Feasibility studies typically contain in-depth expert data analysis and financial projections. Hiring out the work will ensure you get an objective evaluation of the project and its potential downfalls and successes. It’s human nature to bias our own ideas, and a third party can avoid.

How much should I invest in a feasibility study?

For a simpler study on a business idea or product, expect to pay anywhere from $5,000 to $10,000. The general rule of thumb is that a feasibility study will cost 1% of the expected project budget or business’s cost to build.

Should feasibility studies include solutions as well as pointing out obstacles?

Yes, the more information the study provides, the better it will aid in the decision-making process. Feasibility studies should provide an objective determination because of the time and expense involved.

Can my feasibility study become my business plan?

Many times, yes. With some changes in focus and scope, a feasibility study can be re-imagined into a business plan. However, be sure it meets the purpose, which outlines the strategic and tactical steps needed to make the business work.

Bottom Line

Feasibility studies can cost thousands of dollars, but they can save you millions you may lose from making a poor business decision. They examine a new business or product idea by researching the endeavor’s technological, financial, and operational aspects. The study analyzes the data and offers a recommendation on if you should move ahead with your project or idea and how to maximize its success.

About the Author

Find Blake On LinkedIn Twitter

Blake Stockton

Blake Stockton is a staff writer at Fit Small Business focusing on how to start brick-and-mortar and online businesses. He is a frequent guest lecturer at several undergraduate business and MBA classes at University of North Florida . Prior to joining Fit Small Business, Blake consulted with over 700 small biz owners and assisted with starting and growing their businesses.

Join Fit Small Business

Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. Select the newsletters you’re interested in below.

What is the difference between a feasibility study and a business plan?

Navigating the dynamic business world requires a high degree of strategic acumen and meticulous preparation, especially for senior management roles. In this article, we'll delve into two paramount tools that can significantly assist in this journey: business plans and feasibility studies.

Both tools are used extensively by seasoned professionals such as senior finance managers, real estate development managers, asset managers, and procurement managers. Yet, the relationship and differentiation between business plans and feasibility studies often confuse. Through this article, we'll demystify these concepts and reveal how business plan and feasibility study consultants can be crucial in bolstering your strategic decision-making.

Unravelling the relationship

Business plans and feasibility studies are interconnected yet serve different purposes. A business plan outlines your organisation's direction, detailing the approach to achieving set goals, while a feasibility study analyses the viability of a specific business venture before it's initiated.

Consider a corporation contemplating a shift to solar power. They begin with a feasibility study, engaging a consultant to evaluate factors like sunlight availability, installation costs, regulatory environment, and potential impact on their market position. If this study finds that the location isn't sunny enough, costs are too high, or infrastructure is unsuitable, the idea is scrapped, saving the corporation from a costly mistake.

However, if the feasibility study deems the transition viable, the corporation proceeds to the business plan stage. They hire a business plan consultant to outline a detailed strategy, covering aspects such as budgeting, sourcing, installation timelines, risk mitigation, and communication plans.

Dissecting the differences

While both a business plan and a feasibility study are crucial, they're not interchangeable. A feasibility study asks, "Should we do this?" while a business plan asks, "How will we do this?"

To explain better, let's consider a scenario involving a restaurant. If a restaurateur is considering opening a new branch in a different city, they would first conduct a feasibility study. They'd assess the local market demand, competition, demographics, potential locations, costs, and projected revenue. If the study finds that the new branch wouldn't be profitable or sustainable, they would shelve the idea. However, if the feasibility study reveals that the new branch is likely to be successful, they'd proceed to create a business plan. This would detail how they intend to launch and run the new branch, such as the restaurant's concept, target customers, marketing strategies, menu, pricing, staffing, and financial projections.

In essence, the feasibility study is about whether they should open the restaurant, and the business plan is about how they will open and operate it, illustrating the key difference between the two tools.

The rationale behind business plans and feasibility studies

Why should your organisation invest time and resources in these tools? Essentially, they provide clarity and confidence in decision-making. A feasibility study examines the practicability of your idea. It determines if the proposed project is worth the risk and investment. It's akin to a 'litmus test', helping you avoid costly missteps.

On the other hand, a business plan provides a detailed roadmap for your business. It lays out your business's objectives and strategies, management and operational structure, and financial projections. It facilitates internal understanding and commitment and helps attract external investors when well-executed.

The role of consultants

Given the complexity and the high stakes involved, many organisations engage business plan consultants and feasibility study consultants. These experts bring an external perspective, help avoid internal biases, and contribute specialist knowledge and methodologies.

Feasibility study consultants conduct comprehensive market research, cost analyses, and risk assessments. They help determine if your proposed project is both profitable and achievable. On the other hand, business plan consultants assist in crafting compelling business plans that communicate your vision effectively. They analyse your business's strengths, weaknesses, opportunities, and threats (SWOT) and devise strategies that align with your objectives and capabilities.

Final thoughts

For senior management, these tools offer invaluable assistance. A robust feasibility study allows managers to make informed go/no-go decisions. It facilitates risk management and helps align the team around a shared understanding of the project's potential. Business plans, meanwhile, provide a clear vision and direction for the organisation. They assist managers in tracking progress, managing changes, and communicating with stakeholders. They're essential for steering the corporate ship in an often turbulent business sea.

In conclusion, business plans and feasibility studies, assisted by professional consultants, play an instrumental role in shaping and executing your business strategy. They underpin decision-making, mitigate risks, and maximise potential returns. Whether you're evaluating a new project or charting your organisation's path, consider investing in a well-crafted feasibility study and a comprehensive business plan - the rewards can be immense.

Related Services: Feasibility Study , Business Plan , Strategic Advisory

What is the role of a business valuation in estate planning?

Recommended for you

The advantages of working with remote teams.

Approximately 12,600 residential units in Qatar are in the pipeline for Q4 2022

Do neo-banks pose a threat to mainstream banking network in GCC?

Commercial Twin Towers in Sharjah - USD 22,000,000/-

Your folder is empty

Transaction Enquiry

Recover password.

Client Success Stories

The difference between a feasibility study & a business plan

How much wood would a woodchuck chuck if a woodchuck could chuck wood? How much would the wood cost and how dependable is supply? Does the wood have a “best by” date? How long would it take to do the chucking? And what about woodchuck retention, it is a tough market out there.

If there are wood chucking businesses (and we do have a client that clears and hauls felled trees and wood debris), they might want to consider a feasibility study and business plan before diving into an expansion or other major project. Feasibility studies and business plans are commonly needed (or required) for analysis and decision purposes such as the launch of a new business line, product or service line expansions, geographic expansion, or attracting capital. Likewise, target readers range from boards of directors for project approval purposes, management for internal planning, lenders or potential investors, grant or other assistance programs, and a number of others.

But what are the differences between a feasibility study and a business plan, and how do the two relate? A business feasibility study is a detailed analysis of the viability of an idea or concept for a business venture. Once feasibility has been determined, a business plan documents the operational and financial objectives of the venture and the detailed plans to achieve them. In short, a business feasibility study can be looked at as “Can we?” while the business plan is “How to.”

It is common for the “can we?” and “how to” assessments of a project to be combined into one document, but many key aspects of feasibility should be determined before diving too deep into the “how to” of a venture.

Some years ago we did a feasibility study for a large California dairy operation seeking to grow returns by introducing value-added products rather than strictly selling bulk fluid milk. The idea? Homogenize and pasteurize their own milk (some in flavors), put it in glass bottles, and deliver it to people’s doorsteps.

After I got over my shock, we set about exploring key aspects of feasibility: Is there demand for it, and at what price points? What would it take for the company to successfully make and bottle the products? How would it be marketed? Can bottles be returned and sanitized sufficiently for safe re-use?

As you might imagine, there was not much industry data to lean on; Nielsen and IRI have no market data for home delivered milk, there are no trade associations for the home milk delivery business, and not a lot of equipment and bottle suppliers focus on that niche of the otherwise huge dairy industry.

It was a challenge. We designed a market survey and partnered with the marketing program of a local community college to take consumer surveys at farmers’ markets and other events to determine potential market interest and price points. We contacted some of the few similar operations we could find in the United States. We looked into the availability of bottles approved for both milk and multiple re-use.

Ultimately, we found the project feasible, and with this assurance developed a business plan to lay out the “how to-s.” In the years since, the company has been a great success with stunning growth.

Tempting as it may be to dive straight into the “how to,” unless you have other supportable reasons to believe a project is feasible from such key aspects as demand, production, distribution, marketing, capital, and a thorough risk assessment, it is best to spend some time determining “Can we?”

I tell our business feasibility study clients that one result they should be prepared for is “not feasible.” It happens, but it’s still a lot less trouble and risky than jumping in without due diligence. Morrison has conducted feasibility studies and business plans for nearly 20 years for a wide variety of needs and intended readers. We’re always happy to bounce around ideas and help explore what might – or might not – work for a business’s needs.

Brent Morrison is the Founding Principal at Morrison. To get in touch with Brent, please find contact information for Morrison here .

We’ve worked with a wide variety of clients on a broad range of projects and are happy to discuss solutions that can best fit your needs.

Feasibility study: definition, benefits and differences with a Business Plan

Last updated on 09 January, 2024

Welcome to our series of articles on feasibility studies.

What is a Feasibility study?
What is a bankable feasibility study?
How to do a feasibility study?
Feasibility study consultants: expertise needed
Cost of a feasibility study
Car Park Feasibility Study: Key considerations
Hotel Feasibility Study: Methodology
Feasibility study of solar PV projects: Key components
Feasibility study of real estate developments
Feasibility study of marina projects

In this post, we will touch on all the basic concepts behind a feasibility study. definition, benefits of doing it, main parts, differences with a business plan, etc. Aninver Development Partners is a consulting firm specializing in Feasibility studies for projects such as hotels, infrastructure, energy, technology, etc. We assist clients globally.

Definition of Feasibility study

A feasibility study is a comprehensive and systematic analysis and evaluation of a proposed project, business venture, or initiative to determine its practicality, viability, and potential for success. It involves a thorough examination of various factors, such as financial, technical, operational, legal, environmental, and market-related aspects, to assess whether the project is feasible and worth pursuing.

The primary goal of a feasibility study is to provide stakeholders with essential information and insights to make informed decisions about whether to proceed with the project, abandon it, or make necessary adjustments to enhance its chances of success.

Differences between a feasibility study and a business plan

Feasibility studies and business plans are both important tools in the development and evaluation of a business or project, but they serve different purposes and are created at different stages of the process. Here are the key differences between a feasibility study and a business plan:

Differences in Purpose

Feasibility Study : Feasibility studies are conducted in the early stages of project development or business planning. Their primary purpose is to determine whether a proposed project or business idea is viable and should be pursued. Feasibility studies focus on assessing the potential risks, challenges, and opportunities associated with the project.
Business Plan : Business plans are created after the feasibility study, once it has been established that the project is viable. The purpose of a business plan is to outline in detail how the business will be structured, operated, and grown. It serves as a roadmap for the future of the business and is often used to secure financing.

Differences in Content

Feasibility Study : A feasibility study includes an analysis of the project's overall concept, market research, technical requirements, financial projections, potential risks, and recommendations. It provides a high-level overview of the project's feasibility.
Business Plan : A business plan is a detailed document that outlines the company's mission, vision, goals, organizational structure, market strategy, marketing and sales plans, financial forecasts, and operational details. It delves into the specifics of how the business will operate.

Differences in Timing

Feasibility Study : Feasibility studies are conducted at the outset of a project or business idea to assess its potential feasibility. They help stakeholders decide whether to move forward with the project.
Business Plan : Business plans are typically created after the feasibility study, once it has been determined that the project is feasible and worth pursuing. They provide a roadmap for the actual operation and growth of the business.

Differences in Audience

Feasibility Study : The primary audience for a feasibility study includes project stakeholders, investors, and decision-makers who need to determine whether the project should proceed.
Business Plan : Business plans are used to communicate the business's vision and strategy to a wider audience, including potential investors, lenders, partners, and employees.

In summary, a feasibility study is a preliminary assessment of the potential success of a project, while a business plan is a detailed document that outlines how a business will be run. The feasibility study helps determine whether a business plan should be developed, while the business plan provides a comprehensive strategy for the ongoing operation and growth of the business.

Feasibility study vs Pre-feasibility study

Let's explore now the key differences between a prefeasibility study and a feasibility study:

Purpose and Scope : A prefeasibility study and a feasibility study both play critical roles in project evaluation, but they serve distinct purposes. A prefeasibility study is typically the initial phase in the assessment process. Its primary purpose is to provide a preliminary evaluation of a project's potential viability. It helps stakeholders decide whether it's worth investing further resources into a detailed feasibility study. In contrast, a feasibility study goes into much greater depth and detail, assessing the project's practicality from technical, financial, operational, and market perspectives. It aims to provide a comprehensive understanding of whether the project is feasible and worth pursuing.

Level of Detail : One of the key distinctions between the two studies is the level of detail they encompass. A prefeasibility study offers a broad overview of the project, examining high-level factors like market demand, technical requirements, and rough cost estimates. It provides enough information to make an initial go/no-go decision. In contrast, a feasibility study drills down into finer details, providing precise financial projections, risk assessments, engineering specifics, and a comprehensive business plan. It seeks to leave no stone unturned in assessing the project's practicality.

Resource and Cost Implications : A prefeasibility study is generally less resource-intensive and cheaper to conduct compared to a full feasibility study. It acts as a cost-effective filter to eliminate unviable projects early in the evaluation process. Once a project passes the prefeasibility stage and proceeds to a feasibility study, it implies a commitment of more resources, time, and finances due to the comprehensive nature of the study. A prefeasibility study helps in efficient resource allocation by focusing only on the most promising projects, while a feasibility study is a more intensive process suitable for projects that have demonstrated a higher likelihood of success during the prefeasibility assessment.

Benefits of doing a Feasibility study

Conducting a feasibility study offers numerous benefits, making it an essential step in the decision-making process for any project, business venture, or initiative. Here are the key advantages of performing a feasibility study:

Risk Assessment : Feasibility studies help identify potential risks and challenges associated with a project. By thoroughly examining technical, financial, operational, and market-related aspects, stakeholders can pinpoint areas of concern and develop strategies to mitigate or manage these risks effectively.
Decision-Making : Feasibility studies provide critical information to decision-makers, helping them make informed choices about whether to proceed with a project. These studies offer a basis for go/no-go decisions, preventing resources from being wasted on unviable endeavors.
Resource Allocation : By assessing the feasibility of a project, stakeholders can allocate resources more efficiently. They can avoid overinvesting in projects with limited potential and allocate resources to those with a higher likelihood of success.
Financial Planning : Feasibility studies include detailed financial projections and cost estimates. This financial information is invaluable for securing funding from investors, lenders, or other sources. It helps in creating a solid business case.
Market Insight : Market feasibility studies provide insights into customer demand, market trends, and competitive dynamics. This information is crucial for designing products or services that meet market needs and for formulating effective marketing strategies.
Optimized Design : Technical feasibility studies ensure that a project's technical requirements and design are viable. They help in avoiding costly design flaws and ensuring that the project can be implemented as planned.
Legal and Regulatory Compliance : Feasibility studies can identify potential legal and regulatory challenges. This allows for the development of strategies to navigate and comply with relevant laws and regulations, reducing the risk of legal complications later on.
Enhanced Project Viability : Feasibility studies may lead to adjustments and improvements in the project plan, making it more viable and likely to succeed. This iterative process ensures that potential issues are addressed proactively.
Investor and Stakeholder Confidence : When potential investors and stakeholders see that a comprehensive feasibility study has been conducted, they are more likely to have confidence in the project. This can make it easier to secure funding and support.
Long-Term Planning : Feasibility studies not only assess the viability of a project in the short term but also help in long-term planning. They provide insights into the sustainability and growth potential of a business or initiative.

In summary, conducting a feasibility study is a valuable step in the project development process. It provides a structured approach to assess the viability of a project, manage risks, make informed decisions, secure financing, and set the stage for a successful venture. The benefits of a feasibility study extend beyond initial decision-making and contribute to the overall success and sustainability of a project or business.

Components of a Feasibility study

A feasibility study typically consists of several key components that provide a comprehensive evaluation of a project, business venture, or initiative. These components help stakeholders make informed decisions about the feasibility and viability of the proposed endeavor. The main components of a feasibility study include:

Executive Summary

The executive summary provides a concise overview of the entire feasibility study. It includes a brief description of the project, its objectives, and the key findings and recommendations. It serves as a quick reference for decision-makers.

Project Description

This section outlines the project's goals, objectives, and scope. It defines the problem the project aims to solve or the opportunity it seeks to capture. It also specifies the project's location and the stakeholders involved.

Market Analysis

Market analysis assesses the demand for the product or service within the target market. It includes information on target customers, market size, growth potential, competition, and market trends. This component helps determine whether there is a viable market for the project.

Technical Feasibility

Technical feasibility examines the project's technical requirements. It assesses whether the necessary technology, equipment, and resources are available or can be developed. It also identifies any technical challenges that may need to be addressed.

Operational Feasibility

Operational feasibility evaluates how the project will be implemented and operated. It includes details about project timelines, workflow, personnel requirements, and operational processes. This section helps in understanding how the project will function on a day-to-day basis.

Financial Feasibility

Financial feasibility is a critical component that includes detailed financial projections and analysis. It covers aspects such as startup costs, revenue forecasts, expense estimates, cash flow analysis, and return on investment calculations. It assesses the project's financial viability and potential profitability.

Legal and Regulatory Analysis

This section examines the legal and regulatory requirements that may impact the project. It identifies permits, licenses, or compliance issues that need to be addressed. Understanding and addressing legal and regulatory aspects are essential to avoid potential obstacles.

Risk Assessment

The risk assessment component identifies potential risks and challenges associated with the project. It evaluates the probability and impact of these risks and suggests risk mitigation strategies. Risks can be financial, technical, operational, market-related, or related to external factors.

Recommendations and Conclusion

In this section, the feasibility study summarizes the findings and presents clear recommendations based on the assessment. It often includes a conclusion that states whether the project is feasible and worth pursuing or whether it should be abandoned or modified.

The appendices contain additional supporting documentation and data, such as detailed financial spreadsheets, market research reports, technical specifications, and any other relevant information. These provide a more in-depth reference for stakeholders.

The main components of a feasibility study collectively provide a thorough assessment of a project's viability from multiple angles, ensuring that decision-makers have a comprehensive understanding of the project's potential, risks, and benefits.

Examples of Feasibility studies

Let's look now into some examples of feasibility studies for different types of projects and initiatives:

Real Estate Development

A real estate developer is considering constructing a residential apartment complex in a growing urban area. A feasibility study would assess factors like market demand, location, zoning regulations, construction costs, potential revenue from rentals, and the financial viability of the project.

Manufacturing Plant Expansion

A manufacturing company is considering expanding its operations by building a new production facility. The feasibility study would evaluate factors such as available land, infrastructure, equipment requirements, workforce, environmental impact, and the financial feasibility of the expansion.

Small Business Startup

An entrepreneur is exploring the feasibility of starting a small restaurant in a specific location. The feasibility study would examine the local market, including competitors, target customer demographics, startup costs, regulatory requirements, and financial projections for the first few years of operation.

Renewable Energy Project

A renewable energy company is considering the construction of a solar power plant. The feasibility study would assess the site's solar exposure, grid connection feasibility, equipment costs, revenue from energy sales, environmental impact, and the return on investment over the project's lifespan.

Healthcare Facility Expansion

A hospital is contemplating an expansion to meet growing patient demands. The feasibility study would include an assessment of the required medical equipment, staffing needs, regulatory compliance, funding sources, and the anticipated patient load.

Tourism Development

A tourist destination is considering the construction of a new hotel and recreational facilities. The feasibility study would evaluate the area's appeal to tourists, competition with existing businesses, construction costs, expected occupancy rates, and potential revenue from tourism.

Nonprofit Program Expansion

A nonprofit organization is looking to expand its community outreach programs. The feasibility study would assess the need for the programs, funding sources, volunteer availability, operational costs, and the impact of the expansion on the organization's mission and goals.

E-commerce Startup

An entrepreneur plans to launch an e-commerce website. The feasibility study would examine market demand, website development costs, marketing strategies, competitive analysis, and projected sales revenue and profitability.

These examples illustrate how feasibility studies are conducted in various fields and industries to evaluate the potential success and viability of a wide range of projects and initiatives. The specific components and focus areas of a feasibility study will vary depending on the nature of the project and the questions it seeks to address.

7 steps to conduct a Feasibility study

Now, let's think we are going to write a feasibility study. Let's check what steps we need to take to develop the final report.

Conduct a Preliminary Analysis

Begin by conducting an initial evaluation of the project's objectives and scope. This step involves defining the problem the project intends to address or the opportunity it aims to seize. Ensure that the project's goals are clear and well-defined.

Analyze Technical Specifications

Examine the technical aspects of the project in detail. Evaluate the availability of required technology, equipment, and resources. Verify that the project's technical requirements can be met effectively.

Conduct a Commercial Analysis

Perform a comprehensive analysis of the project's commercial aspects. This step involves assessing the market's demand for the product or service, analyzing market size, competition, customer needs, and market trends. Determine if there is a feasible market for the project.

Prepare a Projected Income Statement

Create a detailed projected income statement for the project. This includes estimating startup costs, revenue forecasts, expense projections, and cash flow analysis. Calculate the return on investment (ROI) to determine the project's financial viability, the Internal Rate of Return (IRR) of the investment and the Net Present Value (NPV) of future cash flows.

Prepare a Day-Zero Balance Sheet

Develop a balance sheet that represents the project's financial position at the outset (day zero). This financial snapshot should account for all assets, liabilities, and equity to provide a clear overview of the project's financial situation before it begins.

Analyze Different Alternatives for Feasibility

Explore various alternatives and scenarios for the project's feasibility. Assess different approaches, technologies, or business models to identify the most viable option. Consider the potential impact of these alternatives on the project's success. Make sensibilities to potentila risks.

Make a Go/No-Go Decision

Based on the findings and analysis conducted throughout the feasibility study, make a well-informed decision on whether to proceed with the project (a "Go" decision) or abandon it (a "No-Go" decision). Ensure that the decision aligns with the project's goals and aligns with the information presented in the study.

These steps provide a structured approach to conducting a feasibility study, ensuring that all relevant aspects of the project are thoroughly assessed and considered before making a decision on its viability.

In conclusion, a feasibility study is an indispensable tool for any project, business venture, or initiative. It serves as the critical bridge between a concept and a well-informed decision. By following a systematic process that includes a preliminary analysis, technical assessment, commercial evaluation, financial projections, and a careful consideration of alternatives, stakeholders can gain a comprehensive understanding of a project's viability.

The feasibility study's ability to assess market demand, technical feasibility, operational requirements, financial viability, and potential risks empowers decision-makers to make informed choices. Whether it's a real estate development, a new product launch, a manufacturing expansion, an IT system upgrade, or any other endeavor, a feasibility study helps in risk management, efficient resource allocation, and, ultimately, the successful realization of the project's goals.

It's important to remember that a well-conducted feasibility study not only serves the purpose of greenlighting a project but also provides a foundation for its long-term success. It gives stakeholders the confidence that the project is based on sound analysis and planning. In a world of complex challenges and opportunities, the feasibility study is a guiding compass for those seeking to turn innovative ideas into reality.

Make sure you hire the right consultants to deliver your feasibility study or business plan. Our firm, Aninver Development Partners, specializes in designing bankable feasibility studies to make sure projects continue to their following phase.

Send us a message on our contact page and we can discuss how we can help you.

Some of our experience conducting feasibility studies can be seen below:

Feasibility Study for a new marina in the island of San Andrés through PPP
Pre-feasibility study for construction of silo storages in Northern Ghana through PPP
Feasibility study of a real estate WAQF project in Cotonou (Benin)
Feasibility study and analysis of strategic alternatives of a touristic development in Natal
Feasibility study for creation of an Investment and Export Promotion Agency of Health services in Tunisia
Feasibility Study for car parks in Bishkek though PPP
Feasibility study of markets in Benin and Togo under PPP scheme
Feasibility Study for the establishment of a Large-Scale Cashew Processing Plant in Zambia
Public Private Partnership (PPPs) study in the Housing Sector
Review of Business Case for Manila Central Subway
First Mover PPP Prefeasibility Study
Review of the feasibility study of the PPP project Complejo El Brillante, in Cordoba (Spain)
Review of pre-feasibility study of a Health PPP project

Alvaro de la Maza is one the founding partners of Aninver Development Partners. Alvaro is a Civil Engineer, MS on Infrastructure Management and MBA by IESE Business School.Alvaro has extensive experience in Infrastructure and Public Private Partnerships. Alvaro has worked and led multiple consulting projects for clients such as the World Bank, the African Development Bank and other donors.Alvaro enjoys creating digital products and he has led the development of market intelligence platforms in d...

Most popular articles

Related insights

Join our newsletter.

[email protected]
+234(0) 8105636015
Business Plan

The Difference Between a Business Plan and a Feasibility Study

October 24, 2023
No Comments

Successful businesses don’t happen by chance; they are the result of careful planning and assessment. Whether you’re launching a startup or considering a new project, you need a roadmap that outlines your goals, strategies, and financial projections. This is where a business plan and a feasibility study come into play.

In this article, we will delve deep into the realms of business planning and feasibility analysis, exploring the crucial distinctions between these two fundamental tools.

Understanding Business Plans

Definition and Purpose

A business plan is a comprehensive document that outlines the objectives, strategies, and financial projections for your business. Its primary purpose is to provide a detailed roadmap for your company’s future. It acts as a strategic guide for entrepreneurs, investors, and stakeholders.

Components and Elements

Business plans typically consist of several key components, including:

Executive Summary : A concise overview of the entire plan.
Market Analysis : Research on the industry, competition, and target audience.
Marketing Strategies : Detailed plans for branding, promotion, and sales.
Financial Projections : Forecasts for income, expenses, and profitability.
Operational Plan : Information on day-to-day operations and management structure.
Risk Assessment : Identification and mitigation of potential risks.
Exit Strategy : Plans for future expansion, sale, or closure.

Role in Business Operations

A business plan serves as a strategic document that guides your business operations. It provides clarity on your business model, goals, and how you intend to achieve them. Moreover, it is often a critical tool for attracting investors and securing financing.

Exploring Feasibility Studies

The Difference Between a Business Plan and a Feasibility Study

A feasibility study is a systematic analysis of the practicality and viability of a business idea. Its primary purpose is to determine whether a concept is achievable and sustainable. Feasibility studies are often conducted in the early stages of business development to assess the potential success of a project.

Key Components and Areas of Focus

Feasibility studies typically encompass the following key components:

Market Research : Detailed analysis of the market, including target demographics, competition, and demand.
Technical Feasibility : Evaluation of the project’s technical requirements and capabilities.
Financial Feasibility : Assessment of the project’s financial viability, including cost estimates and revenue projections.
Operational Feasibility : Examination of the logistical and operational aspects of the project.
Legal and Regulatory Feasibility : Review of legal and regulatory requirements that may impact the project’s execution.
Sensitivity Analysis : Testing various scenarios to assess the project’s adaptability to changing circumstances.

Determining Viability

A feasibility study is primarily concerned with determining the viability of a business idea. It helps answer critical questions, such as whether the project is financially feasible, whether the market will support it, and whether potential risks can be mitigated effectively.

Timing and Sequence

Chronological Order

One key difference between a business plan and a feasibility study is the chronological order in which they are typically created. Feasibility studies often precede the development of a business plan.

Why Feasibility Studies Come First

Feasibility studies are conducted early in the business development process to assess the viability of a concept before investing significant time and resources in a comprehensive business plan. If a feasibility study reveals that a project is not feasible, it can save a business from pursuing an unviable idea.

Data Collection and Analysis

Research and Data Collection

Both business plans and feasibility studies involve extensive research and data collection. However, the focus and purpose of this research differ.

Data Analysis in Business Plans

In business plans, data analysis is geared toward understanding the market, competition, and financial projections. It aims to provide a strategic direction for the business.

Data Analysis in Feasibility Studies

Feasibility studies conduct in-depth analysis, focusing on market research, technical feasibility, financial feasibility, and other areas to determine the practicality of a project. The goal is to evaluate whether the project is worth pursuing based on collected data and analysis.

Risk Assessment

Identifying and Mitigating Risks

Both business plans and feasibility studies address the critical aspect of risk assessment, but their approaches differ.

Risk Assessment in Business Plans

Business plans identify and outline potential risks but often focus on strategic plans to minimize and manage these risks.

Risk Assessment in Feasibility Studies

Feasibility studies dig deeper into the assessment of potential risks, challenges, and market uncertainties. They are essential for determining whether the project is too risky or whether risks can be effectively mitigated.

Financial Projections

Detailed Financial Forecasts

Both business plans and feasibility studies involve financial projections, but the depth of these projections varies.

Financial Projections in Business Plans

Business plans include detailed financial forecasts, such as income statements, balance sheets, and cash flow projections. These projections are integral for attracting investors and securing financing.

Financial Analysis in Feasibility Studies

Feasibility studies provide financial analysis that focuses on determining the project’s financial viability. They assess whether the project can be completed within budget and whether it has the potential to generate sufficient revenue to cover costs.

Market Analysis

In-Depth Market Assessment

Market analysis is an important aspect of both business plans and feasibility studies.

Market Analysis in Business Plans

Business plans provide an overview of the market, including target demographics, competition, and market size. Market analysis in business plans is often geared toward supporting sales and marketing strategies.

Market Analysis in Feasibility Studies

Feasibility studies conduct in-depth market research, delving into the specific needs of the target audience, competition, and market demand. The goal is to assess whether the market can support the project and whether it presents a viable opportunity.

Resource Allocation and Budgeting

Allocating Resources

Resource allocation and budgeting are considerations in both business plans and feasibility studies, but the focus varies.

Rea also: The difference between a traditional business plan and a lean startup plan

Resource Allocation in Business Plans

Business plans often include plans for allocating resources, such as staff, equipment, and capital. They outline budgetary requirements for various aspects of the business.

Resource Allocation in Feasibility Studies

Feasibility studies assess the resource requirements of the project and provide an estimate of the budget needed for project development. This information is essential for evaluating whether the project can be executed within the available resources.

Decision-Making Impact

Influencing Decisions

The outcomes of both business plans and feasibility studies have a significant impact on decision-making.

Impact of Feasibility Studies

Feasibility studies influence the decision to proceed with a business idea. If a feasibility study reveals insurmountable challenges, it may deter entrepreneurs from pursuing the project.

Role of Business Plans

Once a project is deemed feasible through the feasibility study, a business plan becomes the tool for executing the strategies and operations outlined in the feasibility study. It guides the day-to-day activities of the business.

Scalability and Adaptability

Adapting to Change

Scalability and adaptability are crucial aspects of both business plans and feasibility studies, but they approach change differently.

Scalability in Business Plans

Business plans may be less adaptable in the face of changing market conditions. They often represent a set path that the business intends to follow.

Adaptability in Feasibility Studies

Feasibility studies emphasize adaptability and flexibility. They recognize that market conditions can change rapidly, and the project may need to adapt to these changes to remain viable.

Integration for Success

The Synergy of Both Tools

While business plans and feasibility studies serve distinct purposes, they can complement each other effectively in the business development process.

How They Work Together

Business plans and feasibility studies work together to create a robust business strategy. The insights gained from the feasibility study can inform the development of a comprehensive business plan. The feasibility study’s findings on market viability, resource requirements, and potential risks can be integrated into the business plan’s strategies and financial projections.

Real-Life Examples

Learning from Successful Businesses

To illustrate the practical application of business plans and feasibility studies, let’s explore a few real-world case studies:

Case Study 1: Tech Startup : A technology startup conducts a feasibility study to assess the demand for its innovative product. The study reveals strong market interest, leading the startup to create a business plan focused on market expansion and revenue growth.
Case Study 2: Restaurant Chain : A restaurant chain plans to expand into a new region. A feasibility study helps determine the viability of the expansion, considering factors like competition and consumer preferences. Subsequently, the business plan outlines the specifics of the expansion, including location, marketing strategies, and financial projections.
Case Study 3: Manufacturing Company : A manufacturing company conducts a feasibility study to explore the possibility of adopting new technology to improve efficiency. The study reveals that the technology is feasible and financially viable. A business plan is then developed to guide the implementation of the new technology, detailing the required resources and the expected impact on production.

“The Difference Between a Business Plan and a Feasibility Study” is not just a matter of paperwork; it’s a fundamental decision that can shape the future of your business. While both tools are critical, it’s essential to recognize their distinct purposes and when to employ them. The key is to leverage the insights from a feasibility study to inform the development of a robust business plan.

In your entrepreneurial journey, you may find that a hybrid approach that combines elements of both business plans and feasibility studies works best for your business. The critical factor is to maintain flexibility and be open to adjusting your planning strategy as your business evolves.

In summary, a feasibility study is the compass that guides you toward viable business concepts, while a business plan is the roadmap that leads you to your destination. Together, they form a powerful combination that can set your business on the path to success.

If you’re unsure about how to approach a feasibility study or develop a business plan for your specific business idea, seek professional guidance. Contact us at Dayo Adetiloye Business Hub via [email protected] or [email protected]. or give us a call at 08105636015, 08076359735 and 08113205312 to access expert assistance and take your business idea to the next level. Making the right decisions today can have a profound impact on the success of your business tomorrow.

Like this article?

Quick Links

Terms | Privacy

Professional Scrum Product Owner (PSPO)
SAFe for Government
Professional Scrum Master (PSM)
Certified ScrumMaster
PMI-ACP Exam Prep
Leading SAFe® 6.0 Certification
SAFe Scrum Master
Certified Scrum Product Owner (CSPO)
SAFe for Teams
Agile Scrum Foundation
AgilePM Foundation and Practitioner Certification
Agile Scrum Master (ASM)
Kanban Training
Scrum Fundamentals

PMP Certification

Project Management Fundamentals

CAPM Exam Prep

Change Management Foundation and Practitioner Certification
PRINCE2 Foundation & Practitioner Certification (7th Edition)
PRINCE2 Agile Foundation & Practitioner Certification
Business Analysis Foundation and Practitioner Certification
Microsoft Project Training
JIRA Certification Training
Lean Project Management
ITIL 4 Foundation
VeriSM™ Foundation
SIAM Foundation
SIAM Professional
7 QC Tools Training
Minitab Essentials
Lean Six Sigma Yellow Belt
Six Sigma Awareness
Lean Six Sigma Green Belt
Design for Six Sigma
Lean Six Sigma Black Belt
Lean Fundamentals
Value Stream Mapping
Quality by Design
Quality Function Deployment
BPM and Six Sigma
RCA through Six Sigma
DevOps Foundation
DevOps Master
DevOps Professional
Continuous Delivery Architecture
COBIT 5 Certification
Corporate Group Training
1-to-1 Training
Join as a Trainer

Best Project Management Blogs

What is Feasibility Study in Project Management?

Feasibility studies play a crucial role in the early stages of project development, offering invaluable insights into a project’s viability and potential challenges. In this blog, we’ll explore the fundamentals of feasibility study, types, components, Its Importance in project management, the process of conducting a feasibility study with real-world example, and the the differece between feasibility studies and business plans.

Whether you’re new to project management or seeking to deepen your understanding, this guide provides a solid foundation on this critical aspect of project planning.

Table of Contents

What is feasibility study?

Why Feasibility Study is Important During a Project?

What are the different types of feasibility study, what is included in a feasibility study report, how to conduct a feasibility study, an example of feasibility study, feasibility study vs. business plan, what is feasibility study.

A feasibility study is a crucial assessment tool in project management . It offers a systematic evaluation of a proposed project’s viability. This comprehensive analysis encompasses various dimensions, including technical, economic, legal, operational, and scheduling considerations.

By analyzing these factors, the feasibility study aims to unearth potential obstacles, assess risks, and identify opportunities associated with the project.

Through this process, stakeholders gain valuable insights to make informed decisions regarding the project’s feasibility and advisability.

Ultimately, the feasibility study culminates in a detailed report outlining its findings, recommendations, and justifications. This report serves as a roadmap for stakeholders, clearly understanding the project’s prospects and potential challenges.

Armed with this information, decision-makers can determine whether to proceed with the project, make adjustments to mitigate risks or abandon it altogether.

Thus, the feasibility study is key in guiding strategic decision-making, ensuring that resources are allocated wisely and projects are set up for success from the outset.

A feasibility study is important during a project for several reasons. Firstly, it serves as a critical decision-making tool, allowing stakeholders to assess the viability and potential risks associated with the project before significant resources are invested.

By conducting the study early in the project lifecycle , organizations can avoid pursuing ventures unlikely to succeed, saving time, money, and effort.

Secondly, a feasibility study helps identify potential obstacles and challenges during the project execution phase. By thoroughly analyzing technical, economic, operational, and legal aspects, the study enables stakeholders to anticipate and mitigate risks, thus enhancing the project’s chances of success.

Moreover, a it provides a structured framework for evaluating different project alternatives and determining the most suitable action. By comparing various scenarios and assessing their feasibility, stakeholders can make well-informed decisions that align with organizational goals and priorities.

Additionally, the findings of a study help in securing buy-in and support from key stakeholders, including investors, sponsors, and senior management.

A comprehensive feasibility study report communicates the motive behind the project, the potential benefits, and the associated risks, thereby instilling confidence and trust in the project’s viability.

Master Feasibility Study and Project Management skills by enrolling in our top project management courses now!

In bringing a project to completion, it’s crucial to gauge its feasibility from multiple angles. This comprehensive assessment examines various aspects, from technical capabilities to market demand.

This section demonstrates the types of feasibility studies essential for project evaluation. From examining technological readiness to analyzing economic viability, operational compatibility, schedule adherence, and market potential, each study plays a crucial role in determining the project’s feasibility.

Join us as we explore the significance of these studies in ensuring successful project outcomes.

Technical Feasibility Study

This study evaluates whether the proposed project can be implemented from a technical perspective. It evaluates factors such as available technology, expertise, infrastructure, and compatibility with existing systems. The goal is to determine if the necessary technical resources and capabilities are available to execute the project successfully.

Economic Feasibility Study

It helps evaluate a project’s financial viability. They analyze costs, benefits, and financial projections to determine whether the project is economically feasible and can generate a satisfactory return on investment (ROI). This study helps stakeholders understand the potential financial risks and rewards associated with the project.

Operational Feasibility Study

Operational feasibility studies consider whether the project aligns with the organization’s operational capabilities and objectives.

They examine factors such as staffing requirements, workflow processes, organizational culture, and potential impacts on day-to-day operations. The goal is to ensure the project can be implemented smoothly and effectively within the existing operational framework.

Schedule Feasibility Study

Schedule feasibility studies evaluate whether the project can be completed within the specified time frame. They analyze project timelines , resource availability, dependencies, and potential risks to determine if the proposed schedule is realistic and achievable. This study helps stakeholders identify and mitigate potential schedule delays or bottlenecks.

Market Feasibility Study

Market feasibility studies focus on assessing the demand for the product or service in the target market. They analyze market trends, customer needs, competitive landscape, and potential market share to determine if there is sufficient demand to support the project. This study helps stakeholders understand the market dynamics and potential opportunities or challenges for the project.

Conducting a feasibility study is essential when initiating a project in project management. This study aims to assess the viability and potential success of the project idea. Several crucial factors are evaluated, including market demand, competition, financial stability, and resource requirements.

A feasibility study in project management encompasses analyzing the technological needs, resource allocation and projected return on investment (ROI).

The findings of the feasibility study are consolidated into a report, typically comprising the following sections:

Executive Summary
Project Specifications
Technological Considerations
Market Analysis
Marketing Strategy
Organizational Structure and Staffing
Project Schedule
Financial Forecasts
Recommendations based on Research

This structured approach ensures that project managers have a comprehensive understanding of the project’s feasibility, enabling informed decision-making and successful project execution.

Conducting a feasibility study is crucial for assessing the viability of a project or business opportunity. By analyzing financial projections, market demand, and operational requirements, organizations can make informed decisions about whether to proceed.

This section explores the essential steps in conducting a feasibility study, assisting in effective decision-making and project success.

Preliminary Study and Definition : Begin by conducting a preliminary study of the business case to define the scope of the feasibility study. Identify the key components to examine and establish realistic objectives. This step sets the foundation for the entire study.
Forecast Income Statement : Generate a forecasted income statement to understand the project’s potential revenue sources and profitability. Analyze how the project will generate income and assess the feasibility of achieving financial goals. Additionally, conduct a market study to evaluate demand and market potential for the product or service.
Plan Company Structure and Operations : Develop a plan for the company’s structure and operations. Determine the organizational structure needed for the project and assess resource requirements. Identify any specific personnel needs and outline operational processes to ensure efficient functioning.
Generate Balance Sheet : Prepare a balance sheet to outline the projected income and expenses associated with the project. Evaluate the financial health of the project and assess the ability to achieve return on investment (ROI). This step provides insights into the project’s financial sustainability.
Data Examination and Final Decision : Review and analyze all collected data before deciding whether to proceed with the project. Consider factors such as market demand, financial feasibility, operational capabilities, and risk assessment. Based on the findings, determine whether the project aligns with organizational goals and if it presents a viable business opportunity.

Conducting a feasibility study is imperative in manufacturing before embarking on projects like electric vehicle (EV) production. Manufacturers can ensure informed decisions and successful ventures by assessing market demand, financial viability, and technical feasibility.

This comprehensive approach guarantees alignment with market dynamics and technological requirements, fostering competitiveness and sustainable growth in the manufacturing sector.

Manufacturing Aspect: Let’s consider the production of electric vehicles (EVs) as an example within the manufacturing sector. Before starting the manufacturing process, a comprehensive feasibility study is essential to assess various aspects of the endeavor.
Financial Aspect: Assessing the financial viability of manufacturing EVs involves analyzing the estimated costs of production, including labor, materials, components, and overhead expenses. Additionally, projected revenue from EV sales must be compared against production costs to determine if the venture is financially possible and can generate a sustainable return on investment.
Market Aspect: Conducting a market feasibility study involves identifying target demographics for EVs and analyzing consumer preferences and purchasing behaviors. Market research helps estimate potential market demand, determine pricing strategies, and identify market trends and growth opportunities.
Technical Aspect: Evaluating the technical feasibility of manufacturing EVs entails analyzing production processes, resource requirements, and technological capabilities. This includes assessing manufacturing facilities, equipment needs, supply chain logistics, and compliance with regulatory standards. Technical feasibility studies ensure that the manufacturing process is optimized for efficiency, quality, and scalability.

A feasibility study is conducted early in project development to assess its viability. At the same time, a business plan serves as a detailed roadmap for executing the project post-feasibility study, outlining strategic objectives and operational plans.

it evaluate practicality, market demand, and risks, informing stakeholders’ decisions, whereas business plans provide comprehensive details for guiding the growth and development of the business over time.

Understanding the key role of feasibility studies in project management is essential for aspiring project managers. From grasping the fundamentals of feasibility studies to exploring their significance in project success, this guide provides comprehensive insights into this critical aspect of project planning.

Professionals can make informed decisions, mitigate risks, and maximize project success by mastering the art of conducting feasibility studies. Ready to elevate your project management skills? Enroll in Project Management Courses at Invensis Learning today and embark on a journey towards becoming a proficient project management professional.

PRINCE2 Foundation and Practitioner Certification Training

EXIN Business Analysis Foundation and Practitioner Training

Change Management Foundation and Practiitioner Certification Training

Project Management Officer: Roles, Types, Skills and Salary

8 Best Project Selection Methods for Project Managers in 2024

Project Management Consultant Roles, Skills and Salary

Project Management Consultant: Job Description, Skills and Salary

How to Choose the Right Professional Course After Graduation?

What is User Story Mapping? Benefits and Examples

What is Definition of Done (DoD) in Agile

What is the Definition of Done in Agile?

Implementing a Project Management System: A Step-by-Step Guide

Implementing Agile Mindset in an Organization

The Project Management Life Cycle Explained

Roles and Responsibilities of a Quality Control Inspector

7 Rules of Effective Communication with Examples

7 Cs of Effective Communication with Example

Top Five Factors that Lead to Project Success

Top 5 Factors for Project Success

Quality Analyst Job Role and Responsibilities- Explained!

Download E-book Blog

Thank You for submitting your enquiry. One of our training consultants will get in touch with you shortly.

50+ Training and Certification Programs - Upskill Today Learn more about our training programs.

Business & Commerce

What is the difference between feasibility study and business plan?

No comments
7 minute read

What is the difference between heath and heather?

Share article, table of contents hide, what is a feasibility study, what is a business plan, the key differences between a feasibility study and a business, when to use a feasibility study vs. a business plan, how to create a feasibility study, how to create a business plan, what are the types of feasibility studies, what are the types of business plans.

A feasibility study is an analysis of whether a business idea is practical and viable , while a business plan outlines the strategy and operations of a business in detail. Essentially, a feasibility study is a precursor to a business plan, helping to determine whether the business idea is worth pursuing before investing time and resources into developing a full plan.

(Photo by Firmbee.com on Unsplash )

Picture of a man making notes on a paper

A feasibility study is an analysis of the viability of an idea, proposal, or concept. It assesses the likelihood that a project will be successful in meeting its objectives and goals, and whether it is worth pursuing.

A feasibility study is not the same as a business plan. A business plan is a document that outlines the financial and operational goals of a business. It includes information on the company’s products or services, marketing strategy, and target market.

A feasibility study looks at all aspects of a proposed project, including technical feasibility, financial feasibility, and operational feasibility. It is used to determine whether a project is worth pursuing and to identify any potential risks or limitations.

Technical feasibility looks at whether a proposed project can be completed with the available resources. This includes evaluating the technical requirements, such as hardware and software requirements, and assessing whether these can be met. Financial feasibility looks at whether a proposed project is financially viable. This includes assessing the costs and benefits of the project, as well as any potential sources of funding. Operational feasibility looks at whether a proposed project can be completed successfully within the given constraints. This includes evaluating the resources required for the project and assessing whether they are available.

The goal of a feasibility study is to identify any potential problems with a proposed project so that they can be addressed before moving forward. By doing this, it increases the chances of success for the project overall.

(Photo by Jason Goodman on Unsplash )

A business plan is a comprehensive document that outlines the strategy, operations, and financial projections for a business. It typically includes information on the company’s products or services, target market, competition, marketing and sales strategies, management team, and financial projections.

A well-written business plan is an important tool for entrepreneurs and business owners, as it provides a roadmap for the future of the business and helps to secure funding from investors or lenders. It allows the business owner to clearly articulate their vision and goals, and to identify potential challenges and opportunities.

The key components of a business plan typically include an executive summary , company description, market analysis, marketing and sales strategy, management and organization, product or service line, financial projections, and funding request.

The executive summary provides an overview of the business plan, highlighting the key points and objectives. The company description provides background information on the business, including its history , mission, and goals. The market analysis outlines the target market, competition, and industry trends. The marketing and sales strategy describes how the business will reach and engage customers. The management and organization section details the management team and organizational structure of the business. The product or service line outlines the products or services the business will offer. The financial projections include income statements, balance sheets, and cash flow statements. Finally, the funding request outlines the amount of funding needed and how it will be used.

Overall, a business plan is a critical document for any business, providing a roadmap for success and a way to attract funding and support from investors and lenders.

Purpose: A feasibility study is conducted to determine whether a business idea is practical and viable, while a business plan is developed to outline the strategy, operations, and financial projections for a business.

Scope : A feasibility study is a preliminary analysis that focuses on the market, technical, and financial feasibility of a business idea, while a business plan is a comprehensive document that covers all aspects of a business, including its products or services, target market, competition, marketing and sales strategies, management team, and financial projections.

Timing : A feasibility study is typically conducted before developing a business plan to determine whether the business idea is worth pursuing, while a business plan is developed once the decision to proceed with the business has been made.

Audience : A feasibility study is primarily used to inform the entrepreneur or management team about the viability of the business idea, while a business plan is used to secure funding from investors or lenders.

Level of detail : A feasibility study provides a high-level analysis of the business idea, while a business plan provides a detailed roadmap for the future of the business, including its marketing and sales strategies, management team, and financial projections.

A feasibility study is typically used when starting a new business or venture, and its purpose is to determine if the proposed business idea is viable. A feasibility study will assess the market potential, technical feasibility, and financial viability of the proposed business. It is important to note that a feasibility study is not the same as a business plan; rather, it is one tool that can be used in developing a business plan.

In contrast, a business plan is typically used once a business has already been established. Its purpose is to outline the company’s strategy for achieving its goals and objectives. Unlike a feasibility study, which assesses the viability of a proposed idea, a business plan focuses on an existing businesses’ ability to execute its strategy and achieve its goals.

A feasibility study is an analysis of whether a proposed project is likely to be successful. A business plan is a more detailed document that outlines the specifics of the business, such as its products or services, marketing strategy, and financial projections.

Creating a feasibility study typically requires four main steps:

Define the problem or opportunity. This step includes understanding the needs of the potential customer or client.
Research and gather data. This step includes secondary research, such as market analysis and industry trends, as well as primary research, such as customer surveys or interviews.
Analyze the data and make recommendations. This step includes determining whether the problem or opportunity can be solved and whether the proposed project is likely to be successful.
Prepare a written report . This step includes documenting the findings of the feasibility study in a clear and concise manner.

Creating a business plan can seem like a daunting task, but it doesn’t have to be. You can start by doing some research and then outlining your goals and objectives. Once you have a good understanding of what you want to achieve, you can start putting together a more detailed plan.

There are a few key things that should be included in any business plan:

An executive summary. This is a brief overview of your business and what you hope to accomplish.
A description of your product or service. What are you offering and why do your customers need it?
A marketing plan. How will you reach your target market and what strategies will you use to promote your product or service?
A financial plan. What are your revenue and expense projections? How much money do you need to get started or to keep your business running?
An operational plan. What are the day-to-day details of running your business? Who will handle what tasks?
A risk management plan. What could go wrong and how will you handle it if it does?

Market Feasibility

A market feasibility study assesses the potential for a product or service to be successful in a given market. It takes into account multiple factors such as the size of the target market, growth trends, competitor analysis, and customer needs and buying habits. This type of feasibility study is important for businesses to understand whether there is a demand for their product or service in the marketplace.

Technical Feasibility

A technical feasibility study assesses the ability of a business to successfully develop and implement a proposed solution. This includes assessing the technical risks involved, as well as ensuring that the necessary resources (e.g., personnel, equipment) are available. A technical feasibility study is important to determine whether a proposed solution is achievable and will meet the needs of the business.

Financial Feasibility

A financial feasibility study assesses the potential financial impact of a proposed solution. This includes an assessment of the costs and benefits of implementing the solution, as well as any potential risks and uncertainties associated with it. A financial feasibility study is important to determine whether a proposed solution is financially viable and will have a positive impact on the business’s bottom line.

Managerial Feasibility

A managerial feasibility study assesses the ability of management to successfully develop and implement a proposed solution. This includes an assessment of management’s experience, skills,

There are three types of business plans :

Internal business plan

An internal business plan is a document that outlines the company’s strategy for achieving its objectives. It is typically created by the company’s management team and is not shared with outsiders.

External business plan

An external business plan is a document that is shared with outsiders, such as investors, potential partners, and customers. Its purpose is to persuasively communicate the company’s strategy and how it will achieve its objectives.

Hybrid business plan

A hybrid business plan combines elements of both an internal and an external business plan. It typically includes a high-level overview of the company’s strategy that can be shared with outsiders, as well as more detailed information on operational matters that is meant for internal use only.

Featured Image By – Photo by Daria Nepriakhina 🇺🇦 on Unsplash

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

What is the difference between guarantor and cosigner?

March 24, 2023

What is the difference between lien and pledge?

June 2, 2023

What is the difference between corporate and franchise?

March 15, 2023

Torque Converter vs Fluid Coupling: Key Differences

Difference Digest
March 21, 2024

Conscious vs. Unconscious: Key Distinctions

March 16, 2024

Debt Consolidation vs. Debt Relief: Key Differences

Confederation vs Federation: Key Differences Explained

March 15, 2024

TheInfoPeak

Dedicated to Business & Technology

Feasibility Study vs Business Plan Similarities And Differences

Feasibility Study vs Business Plan

Setting up a business enterprise can present a lot of challenges for the entrepreneur. The preliminary stage which involves a lot of brainstorming often gets down to preparing two important documents: the feasibility study and the business plan, both of which are quite indispensable if you’re considering starting a business, and doing it properly.

The possibility of success in a venture predicates upon the proper delivery of these documents, which should be written after conducting careful research and critical analysis, and conveyed in formats that others can understand, because you might want to seek for funds or investors, or even solicit for a loan, and so won’t be the only person reading them.

It, therefore, becomes needful for any entrepreneur to be able to distinguish between a feasibility study and a business plan, to know how to go about creating them.

What is a feasibility study?

As the name implies, a feasibility study is an analysis of the viability of an idea. Feasibility studies help answer the essential question, “Should we proceed with the proposed idea?” The objective study may be completed in conjunction with a SWOT planning process, which looks at the strengths, weaknesses, opportunities, and threats that may be present externally (the environment) or internally (resources).

Feasibility studies help determine: a) does the company possess the required resources or technologies, and b) does the proposal offer a reasonable return vs. risk from the investment.

So a feasibility study lets you know whether the idea you have for a business is worth the time, effort, and money you are willing to invest in it. It’s just like asking yourself, “Is it advisable that I go into this business?”.

While you might be able to conduct this study yourself, it would be more productive and prudent to get the contributions of different professionals such as accountants, entrepreneurs who have opened successful businesses, and realtors who can advise you on the worth of the location and pricing (values you would need in costing and price estimation), comparing similar businesses in the location where you wish to set up your enterprise.

What is a Business Plan?

A business plan “is a written document describing the nature of the business, the sales and marketing strategy, and the financial background, and containing a projected profit and loss statement”.

A business plan is also a road map that provides directions so a business can plan its future and helps it avoid bumps in the road. The time you spend making your business plan thorough and accurate and keeping it up-to-date is an investment that pays big dividends in the long term.

The business plan comes after you have conducted a proper feasibility study and ascertained that your idea is worth going “all out for”. So creating a business plan is like saying, “Yes I’m convinced about the profitability of this idea. This is how I intend to make it profitable”.

Every business is established for the sole purpose of making a profit. If profiting is not the goal, then it is no business, but rather a non-profit organization. Hence details of how a business will operate and make a profit are contained in the business plan.

This is where you’re going to spell out your financial and other objectives, the methods you plan to use to achieve them, and your proposed organizational structure.

Now, let’s look at what makes a feasibility study and a business plan appear similar.

Similarities between feasibility study and business plan

Comparing the similarities between a feasibility study and a business plan is important because both are used in different ways to help you create a profitable business. Similarities between the two documents include:

Timing : Both are done in the beginning before the work opens, and can be done again later to define the next steps for future ideas.

Inputs : They both involve input from multiple individuals or departments with different skills.

Format : Both contain other documents that are grouped to create the report.

Components : Some of the issues analyzed are similar, including examining the target market, market conditions, and financial costs.

Use : Both help the management of the organization in making decisions, and they can also be shown to potential investors.

By now you should have a considerable understanding of how a feasibility study differs from a business plan. But to expound your knowledge it would do to know what the varying components are.

Purpose : While a feasibility study determines the viability of a business idea, a business plan comes after the decision has been made to go ahead with the business.

Methodology : In essence, a feasibility study is based significantly on research, while a business plan makes projections into the future.

Risks : A feasibility study ascertains the risks associated with the idea, whereas a business plan explains how these risks will be dealt with to ensure that the business makes the desired profit.

Cost : A feasibility study can require hiring professionals with expertise who will conduct thorough studies, whereas a business plan may be written by employees of the business, as part of their jobs.

How do you conduct a Feasibility Study?

If you’re doing the feasibility study yourself, conduct a complete competitive analysis considering the following outlines:

Product demand: Is there a need or want for your product or service? Is the need already being met, or is there room for another product?

Market conditions : Who would buy your product and where are they? Can you serve their location? Is the market saturated, or is there room/need for more products?

Pricing : What do current users pay for similar products? What do you need to charge so that you will be profitable, and will consumers pay your price?

Risks : What are the risks associated with your idea?

Probability of Success : Can you reasonably overcome the risks to become profitable?

Shea Butter Production In Nigeria 2021 Business Plan

Writing a Business Plan?

Writing a business plan may seem daunting, but if you take it step-by-step, it will come to fruition. The Small Business Administration advises that business plans should include the following:

Executive Summary : Include your mission statement, products and or services, some brief information about your leadership team and key employees, as well as the location of your business. To attract investors, add current financial information and projections for growth.

Company description : Detail the problems your business solves; its target market; its competitive advantages, compared with the competition, and anything else that makes your company superior to others: i.e., product awards or recognition, big increases in sales, and so on.

Market analysis : Perform competitive research of what other businesses are doing; their strengths and weaknesses, and how and why your business will be competitive and successful in the market.

Organization or management : State the legal status of your business, such as a corporation or partnership, and include an organizational chart showing management levels, departments, and so on.

Service or product line : State what you will sell or provide and describe the benefits of each. Explain any research done, and any patents filed, and so on.

Marketing and sales : Explain in detail your marketing strategy and how sales will be made.

Funding request : If you are going to be requesting do fund, detail the amount of funding you’ll need for the next five years – specifically, what you’ll do with the funds, and the terms you’re asking for.

Financial projections : This is the business’s financial outlook for the next five years. Include current financial statements, if the business is in operation.

Appendix : This includes supporting documents or requested materials, such as resumes, product photos, letters of reference, patents, licenses, and so on.

In conclusion, it should be obvious by now that a feasibility study and a business plan cannot substitute for each other, and both exist as essential planning documents for successful businesses. If you have the intention of preparing any or both of these documents, it is advisable to seek the aid of a professional writer wherever you might encounter difficulties.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Design by ThemesDNA.com

Difference between Feasibility Study and Business Plan

Entrepreneurs face many challenges when creating a new venture. Although the business plan is one of the most well-known documents, the feasibility study may be just as important. Before the entrepreneur can seek funding, he or she must demonstrate that the idea is truly a good one.

Rochester.edu explained that a feasibility study, “can be defined as a controlled process for identifying problems and opportunities, determining objectives, describing situations, defining successful outcomes, and assessing the range of costs and benefits associated with several alternatives for solving a problem.”

In order to create a feasibility study, entrepreneurs need to define dimensions of business viability including: market viability, technical viability, business model viability, management model viability, economic and financial model viability, and exit strategy viability.

A good outline for a feasibility study includes:

Introduction
Product or Service
Market Environment
Competition
Business Model
Market and Sales Strategy
Production Operations Requirements
Management and Personnel Requirements
Regulations and Environmental Issues
Critical Risk Factors
Financial Predictions Including: Balance Sheet, Income Statement, Cash Flow Statement, Break Even Analysis, and Capital Requirements

A feasibility study is not the same thing as a business plan. The feasibility study would be completed prior to the business plan. The feasibility study helps determine whether an idea or business is a viable option. The business plan is developed after the business opportunity is created. StrategicBusinessTeam.com explained, “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. 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.”

While it may seem the feasibility study is similar in many ways to the business plan, it is important to keep in mind that the feasibility study is developed prior to the venture. StrategicBusinessStream pointed out that “a feasibility study can readily be converted to a business plan.” It’s important to think of the business plan in terms of growth and sustainability and the feasibility study in terms of idea viability.

Top 30 Links for the Successful Entrepreneur
Top 10 Companies Code of Ethics and Conduct
Top 10 Company Mission Statements
How to Conduct a Feasibility Study
How to Create a Business Plan
Business Plan Outline
Feasibility Plan Outline
Writing a Winning Business Plan

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Difference Between a Feasibility Study Report and a Business Plan

By: Author Tony Martins Ajaero

Home » Starting a Business » Conduct Feasibility Study

Is a feasibility report the same as a business plan? What’s the difference between a feasibility study report and a business plan? Can a feasibility report be converted to a small business plan?

One of the ways to ensure that you start your business on a promising note is to make sure you have a workable business plan and you also have a comprehensive feasibility study report. With that in place, you will be able to predict how the business will perform in one, two, three years, and beyond.

In this article, we will look at the difference between a feasibility study report and a business plan. We will also look at how you can use these business documents to your advantage if you plan to start a business or if you want to scale up your business.

What is a Feasibility Study Report?

A feasibility report is a report that assesses a group of potential project pathways or solutions to see if they are viable. The person who writes a feasibility report assesses the feasibility of several ideas and then makes a suggestion for the best alternative.

Companies frequently face difficulties that can be solved using a variety of approaches, and it is critical that they select the optimal one. A feasibility report can assist you in evaluating the viability of several options in order to select the best one. If your organization wants to determine the best path for a project or solution to an issue, knowing how to write a feasibility report can help.

What is a Business Plan?

A business plan is an outline of the strategy of a business that outlines its goals and plans for accomplishing them. It includes a go-to-market strategy, financial estimates, market research, a corporate purpose, and a mission statement. Schedule and key personnel accountable for completing the goals may also be mentioned in the business plan.

A business plan serves three functions: It summarizes the organization’s strategy in order to execute it over time, attracts funding from investors, and assists in forecasting future business demands.

Please keep in mind that there is no one-size-fits-all business plan because there are so many different enterprises on the market today. Every organization, from startups with just one founder to historic household names, requires a business plan.

What are the Differences Between a Feasibility Study Report and 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.

5. A feasibility study report is used to determine the sustainability of a company idea or project before launching it, whereas a business plan is used to explain the strategy and operations of an existing or new business.

6. A feasibility study report focuses on one aspect of a business idea or project, such as market analysis, technical feasibility, financial feasibility, or organizational feasibility, whereas a business plan covers a broader range of topics, such as market research, marketing strategy, operations plan, financial projections, and management structure.

7. A feasibility study report is normally written for internal use by the business owner, stakeholders, or investors to assess the possible risks and rewards of a business idea or project, whereas a business plan is typically prepared for external use in order to attract finance, partners, or customers.

8. A feasibility study report may be more informal and structured as a report or presentation, whereas a business plan is often more formal and structured as a written document with a defined format.

9. A feasibility study report is normally produced before a business plan and may take less time to complete, but a business plan is an ongoing document that is updated on a regular basis to reflect changes in the business environment.

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.

In conclusion,

Paying attention to these two key business documents (Feasibility Study Report and Business Plan) is what is expected of every entrepreneur or investor who truly wants to become successful with their business.

As a matter of fact, we usually advise entrepreneurs to hire business consultants who are specialized in writing Feasibility Studies and Business Plans to help them prepare a workable document (Feasibility Study Report and Business Plan). With that, you can be assured that your business will be starting on the right footing.

How to Do Feasibility Study for a Business and Write a Report
10 Factors to Consider When Choosing a Business Location
5 Conditions That Makes a Business Opportunity Feasible
A Sample Template for Conducting Business Risk Assessment
10 Ways Socio–Cultural Factors Affect Business

.css-s5s6ko{margin-right:42px;color:#F5F4F3;}@media (max-width: 1120px){.css-s5s6ko{margin-right:12px;}} Join us: Learn how to build a trusted AI strategy to support your company's intelligent transformation, featuring Forrester .css-1ixh9fn{display:inline-block;}@media (max-width: 480px){.css-1ixh9fn{display:block;margin-top:12px;}} .css-1uaoevr-heading-6{font-size:14px;line-height:24px;font-weight:500;-webkit-text-decoration:underline;text-decoration:underline;color:#F5F4F3;}.css-1uaoevr-heading-6:hover{color:#F5F4F3;} .css-ora5nu-heading-6{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;-webkit-box-pack:start;-ms-flex-pack:start;-webkit-justify-content:flex-start;justify-content:flex-start;color:#0D0E10;-webkit-transition:all 0.3s;transition:all 0.3s;position:relative;font-size:16px;line-height:28px;padding:0;font-size:14px;line-height:24px;font-weight:500;-webkit-text-decoration:underline;text-decoration:underline;color:#F5F4F3;}.css-ora5nu-heading-6:hover{border-bottom:0;color:#CD4848;}.css-ora5nu-heading-6:hover path{fill:#CD4848;}.css-ora5nu-heading-6:hover div{border-color:#CD4848;}.css-ora5nu-heading-6:hover div:before{border-left-color:#CD4848;}.css-ora5nu-heading-6:active{border-bottom:0;background-color:#EBE8E8;color:#0D0E10;}.css-ora5nu-heading-6:active path{fill:#0D0E10;}.css-ora5nu-heading-6:active div{border-color:#0D0E10;}.css-ora5nu-heading-6:active div:before{border-left-color:#0D0E10;}.css-ora5nu-heading-6:hover{color:#F5F4F3;} Register now .css-1k6cidy{width:11px;height:11px;margin-left:8px;}.css-1k6cidy path{fill:currentColor;}

Project planning |
How to use a feasibility study in proje ...

How to use a feasibility study in project management

It can be exciting to run a large, complex project that has a huge potential impact on your organization. On the one hand, you’re driving real change. On the other, failure is intimidating.

What is a feasibility study?

A feasibility study—sometimes called a feasibility analysis or feasibility report—is a way to evaluate whether or not a project plan could be successful. A feasibility study evaluates the practicality of your project plan in order to judge whether or not you’re able to move forward with the project.

It does so by answering two questions:

Does our team have the required tools or resources to complete this project?

Will there be a high enough return on investment to make the project worth pursuing?

Feasibility studies are important for projects that represent significant investments for your business. Projects that also have a large potential impact on your presence in the market may also require a feasibility study.

As the project manager , you may not be directly responsible for driving the feasibility study, but it’s important to know what these studies are. By understanding the different elements that go into a feasibility study, you can better support the team driving the feasibility study and ensure the best outcome for your project.

When should you conduct a feasibility study

A feasibility study should be conducted after the project has been pitched but before any work has actually started. The study is part of the project planning process. In fact, it’s often done in conjunction with a SWOT analysis or project risk assessment , depending on the specific project.

Feasibility studies help:

Confirm market opportunities before committing to a project

Narrow your business alternatives

Create documentation about the benefits and detriments of your proposed initiative

Provide more information before making a go/no go decision

You likely don’t need a feasibility study if:

You already know the project is feasible

You’ve run a similar project in the past

Your competitors are succeeding with a similar initiative in market

The project is small, straightforward, and has minimal long-term business impact

Your team ran a similar feasibility study within the past three years

One thing to keep in mind is that a feasibility study is not a project pitch. During a project pitch, you’re evaluating whether or not the project is a good idea for your company, and whether the goals of the project are in line with your overall strategic plan. Typically, once you’ve established that the project is a good idea, you’d then run a feasibility study to confirm the project is possible with the tools and resources you have at your disposal.

Feasibility study vs. project charter

A project charter is a relatively informal document to pitch your project to stakeholders. Think of the charter like an elevator pitch of your project objectives, scope, and responsibilities. Typically, your project sponsor or executive stakeholders reviews the charter before ratifying the project.

A feasibility study should be implemented after the project charter has been ratified. This isn’t a document to pitch whether or not the project is in line with your team’s goals—rather, it’s a way to ensure the project is something you and your team can accomplish.

Feasibility study vs. business case

A business case is a more formalized version of the project charter. While you’d typically create a project charter for small or straightforward initiatives, you should create a business case if you are pitching a large, complex initiative that will make a major impact on the business. This longer, more formal document will also include financial information, and typically involves more senior stakeholders.

After your business case is approved by relevant stakeholders, you’d then run a feasibility study to make sure the work is doable. If you find it isn’t, you might return to your executive stakeholders and request more resources, tools, or time in order to ensure your business case is feasible.

Feasibility study vs. business plan

A business plan is a formal document of your organization’s goals. You typically write a business plan when founding your company, or when your business is going through a significant shift. Your business plan informs a lot of other business decisions, including your three to five year strategic plan .

As you implement your business and strategic plan, you’ll invest in individual projects. A feasibility study is a way to evaluate the practicality of any given individual project or initiative.

4 elements of a feasibility analysis

There are four main elements that go into a feasibility study: technical feasibility, financial feasibility, market feasibility (or market fit), and operational feasibility. You may also see these referred to as the four types of feasibility studies, though most feasibility studies actually include a review of all four elements.

Technical feasibility

A technical feasibility study reviews the technical resources available for your project. This study determines if you have the right equipment, enough equipment, and the right technical knowledge to complete your project objectives . For example, if your project plan proposes creating 50,000 products per month, but you can only produce 30,000 products per month in your factories, this project isn’t technically feasible.

Financial feasibility

Financial feasibility describes whether or not your project is fiscally viable. A financial feasibility report includes a cost/benefit analysis of the project. It also forecasts an expected return on investment (ROI), as well as outlines any financial risks. The goal at the end of the financial feasibility study is to understand the economic benefits the project will drive.

Market feasibility

The market feasibility study is an evaluation of how your team expects the project’s deliverables to perform in the market. This part of the report includes a market analysis, market competition breakdown, and sales projections.

Operational feasibility

An operational feasibility study evaluates whether or not your organization is able to complete this project. This includes staffing requirements, organizational structure, and any applicable legal requirements. At the end of the operational feasibility study, your team will have a sense of whether or not you have the resources, skills, and competencies to complete this work.

Feasibility study checklist

Most feasibility studies are structured in a similar way. These documents serve as an assessment of the practicality of a proposed business idea. Creating a clear feasibility study helps project stakeholders during the decision making process.

A feasibility study contains:

An executive summary describing the project’s overall viability

A description of the product or service being developed during this project

Any technical considerations , including technology, equipment, or staffing

The market survey , including a study of the current market and the marketing strategy

The operational feasibility study , evaluating whether or not your team’s current organizational structure can support this initiative

The project timeline

Financial projections based on your financial feasibility report

6 steps to conduct a feasibility study

You likely won’t be conducting the feasibility study yourself, but you will probably be called on to provide insight and information. To conduct a feasibility study, hire a trained consultant or, if you have an in-house project management office (PMO) , ask if they take on this type of work. In general, here are the steps they’ll take to complete this work:

1. Run a preliminary analysis

Creating a feasibility study is a time-intensive process. Before diving into the feasibility study, it’s important to evaluate the project for any obvious and insurmountable roadblocks. For example, if the project requires significantly more budget than your organization has available, you likely won’t be able to complete it. Similarly, if the project deliverables need to be live and in market by a certain date, but they won’t be available for several months after the fact, the project likely isn’t feasible either. These types of large-scale obstacles make a feasibility study unnecessary, because it’s clear the project is not viable.

2. Evaluate financial feasibility

Think of the financial feasibility study as the projected income statement for the project. This part of the feasibility study clarifies the expected project income and outlines what your organization needs to invest—in terms of time and money—in order to hit the project objectives.

During the financial feasibility study, take into account whether or not the project will impact your business's cash flow. Depending on the complexity of the initiative, your internal PMO or external consultant may want to work with your financial team to run a cost-benefit analysis of the project.

3. Run a market assessment

The market assessment, or market feasibility study, is a chance to identify the demand in the market. This study offers a sense of expected revenue for the project, and any potential market risks you could run into.

The market assessment, more than any other part of the feasibility study, is a chance to evaluate whether or not there’s an opportunity in the market. During this study, it’s critical to evaluate your competitor’s positions and analyze demographics to get a sense of how the project will do.

4. Consider technical and operational feasibility

Even if the financials are looking good and the market is ready, this initiative may not be something your organization can support. To evaluate operational feasibility, consider any staffing or equipment requirements this project needs. What organizational resources—including time, money, and skills—are necessary in order for this project to succeed?

Depending on the project, it may also be necessary to consider the legal impact of the initiative. For example, if the project involves developing a new patent for your product, you will need to involve your legal team and incorporate that requirement into the project plan.

5. Review project points of vulnerability

At this stage, your internal PMO team or external consultant have looked at all four elements of your feasibility study—financials, market analysis, technical feasibility, and operational feasibility. Before running their recommendations by you and your stakeholders, they will review and analyze the data for any inconsistencies. This includes ensuring the income statement is in line with your market analysis. Similarly, now that they’ve run a technical feasibility study, are any liabilities too big of a red flag? (If so, create a contingency plan !)

Depending on the complexity of your project, there won’t always be a clear answer. A feasibility analysis doesn’t provide a black and white decision for a complex problem. Rather, it helps you come to the table with the right questions—and answers—so you can make the best decision for your project and for your team.

6. Propose a decision

The final step of the feasibility study is an executive summary touching on the main points and proposing a solution.

Depending on the complexity and scope of the project, your internal PMO or external consultant may share the feasibility study with stakeholders or present it to the group in order to field any questions live. Either way, with the study in hand, your team now has the information you need to make an informed decision.

Achieve project success with Asana

Done with your feasibility study? You’re ready to run a project! Set your project up for success by tracking your progress in a work management tool , like Asana. From the small stuff to the big picture, Asana organizes work so teams know what to do, why it matters, and how to get it done.

Related resources

Unmanaged business goals don’t work. Here’s what does.

How Asana uses work management to drive product development

How Asana uses work management to streamline project intake processes

How Asana uses work management for smoother creative production

Business Plan Vs. Feasibility Study

Before starting a business, you will perform a feasibility study to ensure that it is feasible or appropriate when you have an idea for a business. On the other hand, is the creation of this business worth your time, efforts, and money? Various professionals can contribute to the study, such as accountants, successful entrepreneurs, and realtors who advise on location and pricing and compare similar companies in the area. A business plan outline shows how the company will work. We assume that your feasibility study has been completed and that it has been determined that the idea is viable. Now you will define your financial and other objectives, methods to achieve them, and organizational structures.

Consider the similarities: Comparison of feasibility studies and business plans is important because both are used in different ways to create profitable businesses. The similarities between the two documents include

· The timing: The two activities begin before the start of the business and can be repeated later to determine the next step for future ideas.

· Input: Both involve input from individuals and departments with different skills.

· Format: Both documents include other documents pulled together to write the report.

· Components: Some of the analysed questions are similar, including the examination of the target market, market conditions and financial costs

· Use: Both help the management of the organization make decisions and can be shown to potential investors.

Understanding the differences is equally important to understand the differences between feasibility studies and business plans. They are not the same and neither can be replaced by the other. The differences are as follows:

· Product demand: Do you need or want your product or service? Does the need already exist or is there space for another product?

· Market conditions: Who would buy your product and where is it? Can you serve their location? Market saturation or need to add space?

· Pricing: What is the current user's pricing of similar products? What do you need to charge to make your business profitable, and consumers will pay the price?

· Risk: What is the risk associated with your idea?

· Probability of success: Are you able to overcome risk in order to maximize profit?

102 Lectures
Exp. 4 Year

Achtago, the world's #1 all-in-one platform for R&D, Achtago is the fastest growing digital community where customers can find and apply for opportunities such as scholarships, jobs, and partnerships; hire the best freelance scientists and browse their portfolio; request a service and get quotes from experts; explore the best tools and content; and manage teams, communications and files in one easy to use dashboard.

How To Avoid Plagiarism in Research Paper (part 2)

How to Avoid Plagiarism in Research (Part 1)

Characteristics of a Great Partnership: Tips from Experts

Do you have questions.

Search Search Please fill out this field.

What Is a Feasibility Study?

Understanding a feasibility study, how to conduct a feasibility study.

Feasibility Study FAQs

The Bottom Line

Business Essentials

Feasibility Study

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.

A feasibility study is a detailed analysis that considers all of the critical aspects of a proposed project in order to determine the likelihood of it succeeding.

Success in business may be defined primarily by return on investment , meaning that the project will generate enough profit to justify the investment. However, many other important factors may be identified on the plus or minus side, such as community reaction and environmental impact.

Although feasibility studies can help project managers determine the risk and return of pursuing a plan of action, several steps should be considered before moving forward.

Key Takeaways

A company may conduct a feasibility study when it's considering launching a new business, adding a new product line, or acquiring a rival.
A feasibility study assesses the potential for success of the proposed plan or project by defining its expected costs and projected benefits in detail.
It's a good idea to have a contingency plan on hand in case the original project is found to be infeasible.

Investopedia / Lara Antal

A feasibility study is an assessment of the practicality of a proposed plan or project. A feasibility study analyzes the viability of a project to determine whether the project or venture is likely to succeed. The study is also designed to identify potential issues and problems that could arise while pursuing the project.

As part of the feasibility study, project managers must determine whether they have enough of the right people, financial resources, and technology. The study must also determine the return on investment, whether this is measured as a financial gain or a benefit to society, as in the case of a nonprofit project.

The feasibility study might include a cash flow analysis, measuring the level of cash generated from revenue versus the project's operating costs . A risk assessment must also be completed to determine whether the return is enough to offset the risk of undergoing the venture.

When doing a feasibility study, it’s always good to have a contingency plan that is ready to test as a viable alternative if the first plan fails.

Benefits of a Feasibility Study

There are several benefits to feasibility studies, including helping project managers discern the pros and cons of undertaking a project before investing a significant amount of time and capital into it.

Feasibility studies can also provide a company's management team with crucial information that could prevent them from entering into a risky business venture.

Such studies help companies determine how they will grow. They will know more about how they will operate, what the potential obstacles are, who the competition is, and what the market is.

Feasibility studies also help convince investors and bankers that investing in a particular project or business is a wise choice.

The exact format of a feasibility study will depend on the type of organization that requires it. However, the same factors will be involved even if their weighting varies.

Preliminary Analysis

Although each project can have unique goals and needs, there are some best practices for conducting any feasibility study:

Conduct a preliminary analysis, which involves getting feedback about the new concept from the appropriate stakeholders
Analyze and ask questions about the data obtained in the early phase of the study to make sure that it's solid
Conduct a market survey or market research to identify the market demand and opportunity for pursuing the project or business
Write an organizational, operational, or business plan, including identifying the amount of labor needed, at what cost, and for how long
Prepare a projected income statement, which includes revenue, operating costs, and profit
Prepare an opening day balance sheet
Identify obstacles and any potential vulnerabilities, as well as how to deal with them
Make an initial "go" or "no-go" decision about moving ahead with the plan

Suggested Components

Once the initial due diligence has been completed, the real work begins. Components that are typically found in a feasibility study include the following:

Executive summary : Formulate a narrative describing details of the project, product, service, plan, or business.
Technological considerations : Ask what will it take. Do you have it? If not, can you get it? What will it cost?
Existing marketplace : Examine the local and broader markets for the product, service, plan, or business.
Marketing strategy : Describe it in detail.
Required staffing : What are the human capital needs for this project? Draw up an organizational chart.
Schedule and timeline : Include significant interim markers for the project's completion date.
Project financials .
Findings and recommendations : Break down into subsets of technology, marketing, organization, and financials.

Examples of a Feasibility Study

Below are two examples of a feasibility study. The first involves expansion plans for a university. The second is a real-world example conducted by the Washington State Department of Transportation with private contributions from Microsoft Inc.

A University Science Building

Officials at a university were concerned that the science building—built in the 1970s—was outdated. Considering the technological and scientific advances of the last 20 years, they wanted to explore the cost and benefits of upgrading and expanding the building. A feasibility study was conducted.

In the preliminary analysis, school officials explored several options, weighing the benefits and costs of expanding and updating the science building. Some school officials had concerns about the project, including the cost and possible community opposition. The new science building would be much larger, and the community board had earlier rejected similar proposals. The feasibility study would need to address these concerns and any potential legal or zoning issues.

The feasibility study also explored the technological needs of the new science facility, the benefits to the students, and the long-term viability of the college. A modernized science facility would expand the school's scientific research capabilities, improve its curriculum, and attract new students.

Financial projections showed the cost and scope of the project and how the school planned to raise the needed funds, which included issuing a bond to investors and tapping into the school's endowment . The projections also showed how the expanded facility would allow more students to be enrolled in the science programs, increasing revenue from tuition and fees.

The feasibility study demonstrated that the project was viable, paving the way to enacting the modernization and expansion plans of the science building.

Without conducting a feasibility study, the school administrators would never have known whether its expansion plans were viable.

A High-Speed Rail Project

The Washington State Department of Transportation decided to conduct a feasibility study on a proposal to construct a high-speed rail that would connect Vancouver, British Columbia, Seattle, Washington, and Portland, Oregon. The goal was to create an environmentally responsible transportation system to enhance the competitiveness and future prosperity of the Pacific Northwest.

The preliminary analysis outlined a governance framework for future decision-making. The study involved researching the most effective governance framework by interviewing experts and stakeholders, reviewing governance structures, and learning from existing high-speed rail projects in North America. As a result, governing and coordinating entities were developed to oversee and follow the project if it was approved by the state legislature.

A strategic engagement plan involved an equitable approach with the public, elected officials, federal agencies, business leaders, advocacy groups, and indigenous communities. The engagement plan was designed to be flexible, considering the size and scope of the project and how many cities and towns would be involved. A team of the executive committee members was formed and met to discuss strategies, lessons learned from previous projects and met with experts to create an outreach framework.

The financial component of the feasibility study outlined the strategy for securing the project's funding, which explored obtaining funds from federal, state, and private investments. The project's cost was estimated to be between $24 billion to $42 billion. The revenue generated from the high-speed rail system was estimated to be between $160 million and $250 million.

The report bifurcated the money sources between funding and financing. Funding referred to grants, appropriations from the local or state government, and revenue. Financing referred to bonds issued by the government, loans from financial institutions, and equity investments, which are essentially loans against future revenue that needs to be paid back with interest.

The sources for the capital needed were to vary as the project moved forward. In the early stages, most of the funding would come from the government, and as the project developed, funding would come from private contributions and financing measures. Private contributors included Microsoft Inc., which donated more than $570,000 to the project.

The benefits outlined in the feasibility report show that the region would experience enhanced interconnectivity, allowing for better management of the population and increasing regional economic growth by $355 billion. The new transportation system would provide people with access to better jobs and more affordable housing. The high-speed rail system would also relieve congested areas from automobile traffic.

The timeline for the study began in 2016 when an agreement was reached with British Columbia to work together on a new technology corridor that included high-speed rail transportation. The feasibility report was submitted to the Washington State land Legislature in December 2020.

What Is the Main Objective of a Feasibility Study?

A feasibility study is designed to help decision-makers determine whether or not a proposed project or investment is likely to be successful. It identifies both the known costs and the expected benefits.

In business, "successful" means that the financial return exceeds the cost. In a nonprofit, success may be measured in other ways. A project's benefit to the community it serves may be worth the cost.

What Are the Steps in a Feasibility Study?

A feasibility study starts with a preliminary analysis. Stakeholders are interviewed, market research is conducted, and a business plan is prepared. All of this information is analyzed to make an initial "go" or "no-go" decision.

If it's a go, the real study can begin. This includes listing the technological considerations, studying the marketplace, describing the marketing strategy, and outlining the necessary human capital, project schedule, and financing requirements.

Who Conducts a Feasibility Study?

A feasibility study may be conducted by a team of the organization's senior managers. If they lack the expertise or time to do the work internally it may be outsourced to a consultant.

What Are the 4 Types of Feasibility?

The study considers the feasibility of four aspects of a project:

Technical: A list of the hardware and software needed, and the skilled labor required to make them work.

Financial: An estimate of the cost of the overall project and its expected return.

Market: An analysis of the market for the product or service, the industry, competition, consumer demand, sales forecasts, and growth projections

Organizational: An outline of the business structure and the management team that will be needed.

Feasibility studies help project managers determine the viability of a project or business venture by identifying the factors that can lead to its success. The study also shows the potential return on investment and any risks to the success of the venture.

A feasibility study contains a detailed analysis of what's needed to complete the proposed project. The report may include a description of the new product or venture, a market analysis, the technology and labor needed, as well as the sources of financing and capital. The report will also include financial projections, the likelihood of success, and ultimately, a go-or-no-go decision.

Washington State Department of Transportation. " Ultra-High-Speed Rail Study ."

Washington State Department of Transportation. " Cascadia Ultra High Speed Ground Transportation Framework for the Future ."

Washington State Department of Transportation. " Ultra-High-Speed Rail Study: Outcomes ."

Washington State Department of Transportation. " Ultra-High-Speed Ground Transportation Business Case Analysis ." Page ii.

Terms of Service
Editorial Policy
Privacy Policy
Your Privacy Choices

Accountancy
Business Studies
Commercial Law
Organisational Behaviour
Human Resource Management
Entrepreneurship
Difference between Cash Market and Derivative Market
Difference between Transfer and Promotion
Difference between Micro Environment and Macro Environment
Differences between Lease and Rent Agreement
Differences between Active Investing and Passive Investing
Difference Between Options and Futures
Difference Between NPV and IRR
Differences between Par Value and Face Value
Difference between Law and Ethics
Differences between Will and Trust
Difference between Invention and Innovation
Difference between FDI and FII
Difference between Forward Contract and Futures Contract
Differences between Margin and Profit
Difference between Business Continuity Plan and Disaster Recovery Plan
Difference between Investment Banking and Commercial Banking
Difference Between Fixed and Flexible Budget
Difference between Entrepreneur and Manager
Difference between Teaching and Training

Difference between Feasibility Study and Business Plan

Feasibility Study and Business Plan are essential tools in the business development process. They serve different purposes and are conducted at different stages. A feasibility study helps determine the viability of a business idea; whereas, a business plan provides a detailed roadmap for executing that idea and achieving business goals.

What is a Feasibility Study?

A feasibility study is a comprehensive assessment conducted at the early stages of a business idea or project to evaluate its potential viability and identify potential risks and challenges. The primary purpose of a feasibility study is to determine whether the proposed business venture is feasible and worth pursuing further.

Features of the Feasibility Study are:

Market Analysis: Feasibility Study evaluates the target market , including its size, growth potential, demographics, and competition. This involves researching customer needs, preferences, and behavior to assess demand for the proposed product or service .
Technical Feasibility: A feasibility study assesses the technical requirements and capabilities needed to develop and deliver the product or service. This may involve evaluating technology, equipment, facilities, and expertise required for production or implementation.
Financial Feasibility: A feasibility study conducts financial analysis to estimate the costs involved in starting and operating the business, as well as potential revenue and profitability. This includes preparing financial projections, such as income statements , cash flow statements , and Return on Investment (ROI) calculations.

What is a Business Plan?

A business plan is a comprehensive document that outlines the goals, strategies, operations, and financial projections of a business. It serves as a roadmap for the organization’s future direction and provides a detailed blueprint for how the business will be structured, managed, and operated.

Features of a Business Plan are:

Executive Summary: A business plan gives a brief overview of the business concept, objectives, products or services offered, target market, competitive advantage, and financial projections.
Company Description: It gives detailed information about the business, including its history, mission statement, vision, values, legal structure, location, and ownership.
Market Analysis: A business plan is formed after analyzing the target market, including its size, growth potential, demographics, buying behavior , market trends, and competition. This section also outlines the business’s market positioning and competitive strategy.

Feasibility Study and Business Plan – FAQs

When should a feasibility study be conducted.

A feasibility study is typically conducted at the early stages of developing a business idea or project, before significant resources are invested. It helps entrepreneurs and stakeholders make informed decisions about whether to proceed with the venture.

Who conducts a feasibility study?

Feasibility Studies are often conducted by entrepreneurs, business owners, project managers, consultants, or other professionals with expertise in the relevant industry or field. They may also involve collaboration with specialists such as market researchers, engineers, financial analysts, and legal advisors.

When should a business plan be developed?

A business plan is typically developed after a feasibility study has been conducted and the decision to move forward with the business venture has been made. It provides a detailed blueprint for executing the business idea and achieving its objectives.

Who uses a business plan?

Business plans are used by entrepreneurs, startups, existing businesses, investors, lenders, partners, employees, and other stakeholders interested in understanding the organization’s goals, strategies, operations, and financial prospects.

What are the benefits of conducting a feasibility study?

Benefits of conducting a feasibility study include minimizing risks, identifying potential challenges and opportunities, validating assumptions, attracting investors or lenders, guiding decision-making , and increasing the likelihood of success for the proposed business venture.

Please Login to comment...

Improve your Coding Skills with Practice

What kind of Experience do you want to share?

Examples of Business Feasibility Reports

Small Business
Business Planning & Strategy
Business Strategy Examples
')" data-event="social share" data-info="Pinterest" aria-label="Share on Pinterest">
')" data-event="social share" data-info="Reddit" aria-label="Share on Reddit">
')" data-event="social share" data-info="Flipboard" aria-label="Share on Flipboard">

How to Create a New Business Plan

How to write a business plan for jewelry making, how to write a business description.

How to Write an Exploratory Project Proposal
How to Export a Canvas to Illustrator

Almost all business decisions require some degree of thoughtful analysis before a decision is made. Small business owners want to find the answers that determine if they should proceed with a proposed idea or not. Business feasibility reports provide the answer to that question.

What Is a Business Feasibility Report?

Business feasibility reports are analyses of a proposed venture or project that looks into the following areas:

A description of the idea or project
Analysis of the market for the products or services
Competition
Technical issues involved
How the organization will be structured
Financial projections

What Is the Proposal?

A feasibility study starts with a description of the products or services to be marketed, and it outlines a model of how the business intends to make a profit. It describes the types and quality of products that will be offered and a timeline for preparation, implementation and the time it will take to reach profitable production volumes.

A description of the project also includes its social, economic and environmental impact on surrounding communities.

What Is the Market?

The market portion of the feasibility study identifies the target market segments and describes the scope and size of the overall industry. It includes estimates of the future direction and strength of the demand for the products and services. What are the demographics of the potential consumers? How will the goods get distributed to the market?

Is the market stable or are future changes expected that will offer opportunities for the new venture?

What About the Competition?

Is the competition concentrated in a few large manufacturers or spread among numerous small producers? Who are the major competitors, and how will the new venture compete against them? What are the barriers to entry into the market?

Your business reports should outline a pricing strategy designed to attract customers from competitors and grow the sales of the company.

What Are the Technical Considerations?

The study will identify the type, size and location of any production facilities. It will outline the necessary buildings, equipment, distribution areas and inventory requirements and storage. Discuss any technologies that will be employed.

Describe the needed access to raw materials and labor. Who will be the potential suppliers and where are they located? What is the availability of the necessary skills in the local labor market?

A section of the feasibility study should discuss the environmental impact of the project and any potential regulatory issues or emissions problems.

How Will the Venture be Organized?

For any new project to achieve success, it must have an organizational structure designed to manage and control its operations, marketing and sales. What are the positions that will be required, and are there people available with the necessary skills to fill these positions?

What Are the Financial Projections?

Any new proposed ideas or ventures usually have an objective of somehow making a profit. Projections of future sales, expenses, profits and cash flow are intended to impart some understanding of the possible results of the project.

Financial considerations would describe the initial capital requirements, working capital needs and availability of supplier credit. They would also discuss possible alternative sources of funds, such as bank loans or venture capital partners.

A Business Feasibility Report Versus a Business Plan

A business feasibility report is not a business plan. A feasibility study is an investigative process that seeks to determine the viability of a business venture. It is conducted before a business plan is even considered.

A business plan describes the steps needed to take a proposal from an idea to the reality of implementation after the decision has been made to go ahead with the project.

Rowan University: Feasibility Study Template
Business Tasmania: How to Conduct a Feasibility Study
Cleverism: How to Conduct a Feasibility Study the Right Way
"VTT"; Technical Feasibility; Teppo Kivento

James Woodruff has been a management consultant to more than 1,000 small businesses. As a senior management consultant and owner, he used his technical expertise to conduct an analysis of a company's operational, financial and business management issues. James has been writing business and finance related topics for work.chron, bizfluent.com, smallbusiness.chron.com and e-commerce websites since 2007. He graduated from Georgia Tech with a Bachelor of Mechanical Engineering and received an MBA from Columbia University.

How to write a feasibility report on starting a small scale fish farm, how to understand a business plan, the importance of a business plan, 6 types of business plans, what do business documents include, how to create a business plan as an entrepreneur, feasibility study requirements, what is an r&d report, difference between a business plan & a business proposal, most popular.

1 How to Write a Feasibility Report on Starting a Small Scale Fish Farm
2 How to Understand a Business Plan
3 The Importance of a Business Plan
4 6 Types of Business Plans

Supported by

news analysis

Biden’s Plan B on Inflation: Turn It Against Trump

Price pressures aren’t easing fast enough to guarantee the interest-rate cuts the president hoped to see by November, so his message is evolving.

Share full article

President Biden, wearing sunglasses, is viewed from his left side while resting his left hand on a lectern outside the White House.

By Jim Tankersley

Jim Tankersley covers economic policy at the White House.

President Biden and his economic team had high hopes about how two years of rapid inflation would play out in the months leading to the November presidential election. Price growth would continue to cool. The Federal Reserve would cut interest rates. Mortgage rates and other borrowing costs would fall. Consumer moods would improve, and so would Mr. Biden’s re-election prospects.

What’s happening instead is more problematic. The inflation fight has stalled. Consumer prices are rising more slowly than they did a year ago, but still hovering at an annual growth rate that is higher than the Fed’s 2 percent target. Investors are recalibrating their expectations for when — or even if — interest rates might start to come down this year.

Mr. Biden is recalibrating as well, as both a Fed forecaster and a politician.

On Wednesday, after the latest inflation data showed an unexpected acceleration in price gains, Mr. Biden again tried to assure voters that he is focused on bringing down the cost of groceries, housing and other staples of everyday life, saying in a statement that “fighting inflation remains my top economic priority.”

Then he waded into the thorny territory of commenting on how the Fed, which is independent of the White House, might set interest-rate policy in an election year.

“I do stand by my prediction that before the year is out there will be a rate cut,” the president said when asked about the Consumer Price Index report. “This may delay it a month or so. I’m not sure of that. I don’t, we don’t know what the Fed is going to do for certain.”

A beat later, he added a veiled shot at his Republican opponent, former President Donald J. Trump.

“We’re better situated than we were when we took office where we — inflation was skyrocketing,” Mr. Biden said. “And we have a plan to deal with it, whereas the opposition — my opposition talks about two things. They just want to cut taxes for the wealthy and raise taxes on other people.”

It is a small pivot for Mr. Biden but an important one, as he seeks to dig out of a deep hole with voters on the inflation issue.

The Consumer Price Index hit a four-decade high of about 9 percent early in Mr. Biden’s term but has fallen over the past two years to about 3.5 percent in March. Voters continue to rank inflation at the top of their list of problems facing the country, and they continue to rate Mr. Trump more highly on economic issues than Mr. Biden.

Mr. Trump oversaw relatively low price growth as president and left office with an inflation rate below 2 percent, a hangover from the pandemic recession, when consumer spending was slow to rebound after the national economy experienced an unprecedented shutdown.

Price growth was accelerating by the time Mr. Biden took office, and it surged in his first few months on the job. That inflation was spurred in part by economic stimulus legislation signed by Mr. Trump in 2020 and another round signed by Mr. Biden in the spring of 2021, including direct checks to households.

The nuances of how inflationary pressures grew have not mattered to Mr. Trump and his allies, who have hit Mr. Biden relentlessly on prices.

“No one can afford the cost of Biden’s failed economic policies,” the Republican National Committee said in a release on Wednesday, “but relief is on the way when voters elect President Trump on November 5.”

Mr. Biden has recently amplified a message that is meant to respond to dissatisfaction over inflation. He has proposed sweeping efforts to build affordable housing and new tax credits to help certain Americans afford to buy homes. His administration has taken steps billed as promoting competition, and lowering prices, across several sectors, including a Federal Trade Commission attempt to block a merger of two large grocery chains, which officials said would push up prices for shoppers.

The president has also called out snack-food makers and other companies for so-called shrinkflation — reducing the size of a product like chips or ice cream, while raising prices or holding them constant. And he has appeared in a series of events meant to highlight other proposals to lower costs of some services, like child care and home health care for older or disabled Americans.

Now, he is adding a political contrast as he tries to cast Mr. Trump and Republicans as uninterested in the actual policy work of fighting inflation and as barriers to his own proposals.

The entire exercise has been validated by surveys of voters and how they respond to economic messaging. Democratic strategists have urged Mr. Biden to blame corporate greed for persistent inflation and to hit Mr. Trump for cutting taxes for high earners while in office. Both messages consistently test well with voters, including independents and other groups that loom as critical swing blocs in November.

Democrats have also begun to attack Mr. Trump for proposing to impose new tariffs on imports from China and other countries. Research has shown that the China tariffs, while intended to punish Beijing, ultimately drove up costs for American consumers .

But there is also a sort of policy helplessness underlying the shift. Unlike Mr. Trump, who as president badgered the “boneheads” at the Fed to lower rates , Mr. Biden has stopped short of telling the independent central bank what to do. He has little hope of passing any inflation-fighting legislation in Congress this year. His aides concede that the executive actions he can take to reduce costs are probably marginal, at best, in the context of economywide price increases.

They also remain frustrated at the degree to which voters continue to focus more on inflation than on job growth, which has surged under Mr. Biden.

“Heading into the election season with mortgage and other interest rates at or near their present high levels is certainly a disconcerting prospect for the Biden administration,” said Eswar Prasad, an economist at Cornell University. “The administration is really bothered by the lack of credit for all that’s going right in the economy and the blame they’re getting for all that’s being perceived as going wrong.”

That’s one reason Mr. Biden is trying to redirect the inflation conversation in the campaign, from current conditions to what could make the economy better or worse in the future.

“They have no plan,” he said on Wednesday, referring to Mr. Trump and Republicans. “Our plan is one I think is still sustainable.”

Jim Tankersley writes about economic policy at the White House and how it affects the country and the world. He has covered the topic for more than a dozen years in Washington, with a focus on the middle class. More about Jim Tankersley

IMAGES

10 Feasibility study and business plan differences you should know
Impressive Technical Feasibility Report Means How To Write A Daily My Boss
Feasibility Analysis vs. Business Plan
10 Feasibility study and business plan differences you should know
Feasibility Study vs Business Plan
How to do Feasibility Study for any Business?

VIDEO

ما الفرق بين دراسة الجدوى وخطة العمل
BUSINESS PLAN EPISODE 11
WBS Management Consultant Services regarding Feasibility Study/feasibility study
10 crossbred cows and 5 heifers feasibility report II How to earn millions in dairy farming
25 heifers plan 2023 II Feasibility of 25 heifers 2023 II Dairy farming vs heifer farming 2023
Layer farming 1000 birds project report

COMMENTS

10 Feasibility study and business plan differences you should know
A business plan, on the other hand, is created only when it has been determined that a business opportunity exists and that the endeavour is about to begin. A feasibility report is the first step and after that a business plan is made to be implemented, without feasibility report a business plan cannot be made. A feasibility study contains ...
Difference Between Feasibility Study and Business Plan
Main Purpose of a Business Plan and a Feasibility Study. In short, a feasibility study gives a conclusion or recommendations, while a business plan gives a roadmap. The feasibility study helps determine whether an idea or business is a viable option. Therefore, a feasibility study is done first before investing a dime in the business.
Business Plan Vs. Feasibilty Study
Feasibilty Study. Business plans and feasibility studies are analysis and decision-making tools used by companies. Feasibility studies are used to determine whether a proposed action has a high enough probability of success that it should be undertaken. Business plans are blueprints for implementing actions that have already been deemed ...
Business Plan Vs. Feasibility Study
Methodology: Essentially, feasibility studies are research projects, whereas business plans are projections for the future. Risks: Feasibility studies determine the risks associated with the idea ...
The Difference Between A Feasibility Study And A Business Plan
A business plan is a strategy and tactical document that is prepared after a successful feasibility study has been carried out. It is written based on the results of a feasibility study, and focuses instead on how the business can achieve a successful market penetration and growth. A business plan also contains financial projections, cash flow ...
What Is a Feasibility Study for Small Business?
Feasibility Study vs Business Plan. A feasibility study often comes before the business plan, because the information and data uncovered in the study are included in the business plan. Plus, if the feasibility gives a recommendation not to move forward, you may want to rethink your business idea or product altogether before creating a plan. ...
What is the difference between a feasibility study and a business plan
A business plan outlines your organisation's direction, detailing the approach to achieving set goals, while a feasibility study analyses the viability of a specific business venture before it's initiated. Consider a corporation contemplating a shift to solar power. They begin with a feasibility study, engaging a consultant to evaluate factors ...
The difference between a feasibility study & a business plan
A business feasibility study is a detailed analysis of the viability of an idea or concept for a business venture. Once feasibility has been determined, a business plan documents the operational and financial objectives of the venture and the detailed plans to achieve them. In short, a business feasibility study can be looked at as "Can we ...
Feasibility study: definition, benefits and differences with a Business
The feasibility study helps determine whether a business plan should be developed, while the business plan provides a comprehensive strategy for the ongoing operation and growth of the business. Feasibility study vs Pre-feasibility study. Let's explore now the key differences between a prefeasibility study and a feasibility study:
The Difference Between a Business Plan and a Feasibility Study
The insights gained from the feasibility study can inform the development of a comprehensive business plan. The feasibility study's findings on market viability, resource requirements, and potential risks can be integrated into the business plan's strategies and financial projections. Real-Life Examples. Learning from Successful Businesses
What is a Feasibility Study? Overview, Improtance and Example
Feasibility Study Vs. Business Plan. A feasibility study is conducted early in project development to assess its viability. At the same time, a business plan serves as a detailed roadmap for executing the project post-feasibility study, outlining strategic objectives and operational plans.
What is the difference between feasibility study and business plan?
A feasibility study is an analysis of whether a business idea is practical and viable, while a business plan outlines the strategy and operations of a business in detail. Essentially, a feasibility study is a precursor to a business plan, helping to determine whether the business idea is worth pursuing before investing time and resources into developing a full plan.
Feasibility Study vs Business Plan Similarities And Differences
Purpose: While a feasibility study determines the viability of a business idea, a business plan comes after the decision has been made to go ahead with the business. Methodology: In essence, a feasibility study is based significantly on research, while a business plan makes projections into the future. Risks: A feasibility study ascertains the ...
Difference between Feasibility Study and Business Plan
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.". While it may seem the feasibility study is similar in many ways to the business plan, it is important to keep in mind that the feasibility ...
Difference Between a Feasibility Study Report and a Business Plan
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. 5.
Using Feasibility Studies in Project Management [2024] • Asana
Feasibility study vs. business plan. A business plan is a formal document of your organization's goals. You typically write a business plan when founding your company, or when your business is going through a significant shift. Your business plan informs a lot of other business decisions, including your three to five year strategic plan.
Business Plan Vs. Feasibility Study
A business plan outline shows how the company will work. We assume that your feasibility study has been completed and that it has been determined that the idea is viable. Now you will define your financial and other objectives, methods to achieve them, and organizational structures.
Feasibility Study
Feasibility Study: A feasibility study is an analysis of how successfully a project can be completed, accounting for factors that affect it such as economic, technological, legal and scheduling ...
Feasibility Study and Business Plan Road-Map
If so, a strategic plan is called and is generally composed of 11 parts as follows: Part 1: Project summary on one page (business model). Part 2: Company Overview (Project). Part 3: The product or ...
Difference between Feasibility Study and Business Plan
Meaning. A feasibility study is conducted at the early stages of a business idea to assess its viability and determine whether it is feasible to pursue further. A business plan is a comprehensive document that outlines the goals, strategies, operations, and financial projections of an existing or proposed business. Focus.
Examples of Business Feasibility Reports
A feasibility study is an investigative process that seeks to determine the viability of a business venture. It is conducted before a business plan is even considered. A business plan describes ...
Business plan vs. feasibility study
While a business plan is a comprehensive document outlining a company's strategy, operations, and financials, a feasibility study is a preliminary analysis of a business idea's viability. In this article, we will define and compare business plans and feasibility studies, provide examples, and examine case studies to illustrate their ...
Feasibility Study VS Business Plan
Feasibility Study VS Business Plan - Free download as PDF File (.pdf), Text File (.txt) or view presentation slides online. Just to aid the understanding of a business plan and feasibility studies as well as to let us know what the difference is.
Biden's Plan B on Inflation: Turn It Against Trump
Price growth was accelerating by the time Mr. Biden took office, and it surged in his first few months on the job. That inflation was spurred in part by economic stimulus legislation signed by Mr ...

10 Feasibility study and business plan differences you should know

Similarities between a Feasibility study and a business plan

Submit a Comment Cancel reply

Follow Us On

Latest Posts

Difference Between Feasibility Study and Business Plan

What is the Difference Between Feasibility Study and Business Plan

Feasibility Study

Main Purpose of a Business Plan and a Feasibility Study

Outline of a Business Plan and a Feasibility Study

Challenges of a Business Plan and a Feasibility Study

Share this:

About The Author

5 thoughts on “Difference Between Feasibility Study and Business Plan”

Leave a Reply Cancel reply

Business Plan Vs. Feasibilty Study

Many Decisions vs. One

Differences

This site has stepped out of a

What Is a Feasibility Study for Small Business?

How the Feasibility Study Works

Who Should Get a Feasibility Study?

Feasibility Study vs Business Plan

What Should Be in a Feasibility Study?

Cost of a Feasibility Study

Who Provides Feasibility Studies?

Tips and Best Practices to Follow When Purchasing a Feasibility Study

Frequently Asked Questions (FAQs) for a Feasibility Study

How much should I invest in a feasibility study?

Should feasibility studies include solutions as well as pointing out obstacles?

Can my feasibility study become my business plan?

Bottom Line

About the Author

Blake Stockton

Join Fit Small Business

What is the role of a business valuation in estate planning?

Recommended for you

Approximately 12,600 residential units in Qatar are in the pipeline for Q4 2022

Do neo-banks pose a threat to mainstream banking network in GCC?

Transaction Enquiry

The difference between a feasibility study & a business plan

Feasibility study: definition, benefits and differences with a Business Plan

Definition of Feasibility study

Differences between a feasibility study and a business plan

Differences in Purpose

Differences in Content

Differences in Timing

Differences in Audience

Feasibility study vs Pre-feasibility study

Benefits of doing a Feasibility study

Components of a Feasibility study

Examples of Feasibility studies

7 steps to conduct a Feasibility study

Most popular articles

Related insights

The Difference Between a Business Plan and a Feasibility Study

Like this article?

Leave a comment

Quick Links

What is Feasibility Study in Project Management?

Why Feasibility Study is Important During a Project?

Technical Feasibility Study

Economic Feasibility Study

Operational Feasibility Study

Schedule Feasibility Study

Market Feasibility Study

RELATED ARTICLES MORE FROM AUTHOR

Project Management Officer: Roles, Types, Skills and Salary

8 Best Project Selection Methods for Project Managers in 2024

Project Management Consultant: Job Description, Skills and Salary

Related Articles

How to Choose the Right Professional Course After Graduation?

What is User Story Mapping? Benefits and Examples

What is the Definition of Done in Agile?

Implementing a Project Management System: A Step-by-Step Guide

Implementing Agile Mindset in an Organization

The Project Management Life Cycle Explained

Roles and Responsibilities of a Quality Control Inspector

7 Cs of Effective Communication with Example

Top 5 Factors for Project Success