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Feasibility Study vs. Business Plan: What is the Difference?

Can you easily differentiate between a feasibility report and a business plan? It's easy! Just read through the article, and it will all become easy.

Do you know about the feasibility study? A feasibility study is a formal document that helps us find and investigate a proposed project. We can determine the weaknesses and strengths of the project, saving us time and energy, with the help of a feasibility study report. We can determine whether the idea suggested will be profitable and feasible in the future.

It is essential to be sure whether the project will eventually turn out to be good before investing in it. This organization also needs to know how much cost is to be put into the project. Generally, a feasibility analysis represents whether the firm should venture or continue into the proposed project.

What is a Business Plan? A business plan is an official paper outlining the goals/ objectives of the business, time in which the goal will be completed, and the strategies that may be followed to reach a specific goal.The business plan is an essential document for every new firm to have in place before it can start operations. Normally, a credible business plan is required by banks and venture capital companies before considering financing 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.

It determines whether the business or a concept is possible or not. After an opportunity has been identified about a business, then preparation of a business strategy follows.

"A feasibility study is undertaken with the intention of determining the workability and profitability of a company venture. A feasibility study is conducted prior to any kind of money commitment in a new business endeavor to find out if it will be worth the time, effort, and resources spent.”

Similarity Between A Feasibility Study And A Business Plan

There is a need to analyze the similarities between a feasibility study and a business plan since both are carried out simultaneously in the same ways as to help build a company that is profitable. Here are some of the similarities between the two documents:

• Time: Both the reports are prepared before the business starts and can be prepared later also to determine the next steps for new ideas.

• Input: Both Feasibility report and the Business plan contain input from different people or departments with different skills.

• Format: Both report formats contain other documents that are collected in order to prepare the report.

• Components: Such topics like analysis of the target market, market conditions, and financial costs are some among them.

• Use: Both can be presented to investors who may be interested to invest and can assist in making choices by the management of that organization.

Organizations use both a business plan and feasibility study as analytical and decision-making software. Although the three software could be used together in making a decision, each software does have its strengths and weaknesses and apparently targets and addresses separate processes.

Difference Between Feasibility Study & Business Plan

Need Guidance For implementing  feasibility study or business plan

Masafdar is an expert to seek guidance in implementing feasibility studies and providing a detailed business plan for specific goals. This can either be about developing a new venture, examining the viability of an idea, or even providing a road map on how to organize a business effectively. Masafdar has a strategic approach that utilizes market insight and financial analysis. The identification of risks, opportunities within markets, and the formulation of plans that contribute to sustainable growth form part of our expertise. Our company will guide and assist you in bringing your vision to life by offering a concrete, practical roadmap for achieving concrete results.