Scribd
Upload
34 views

Edeza Acet

A feasibility study is conducted before starting a business to determine if the idea is viable and worth the time and money, while a business plan is created after the feasibility study and details how the business will operate financially and organizationally. Key differences are that feasibility studies research the risks and profit potential of an idea, whereas business plans focus on growth projections and risk management strategies once the decision has been made to start the business. Both tools involve input from different professionals and examine factors like the target market and financial costs, but serve different purposes in the planning process.

Uploaded by

Derick Fontanilla
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
34 views

Edeza Acet

A feasibility study is conducted before starting a business to determine if the idea is viable and worth the time and money, while a business plan is created after the feasibility study and details how the business will operate financially and organizationally. Key differences are that feasibility studies research the risks and profit potential of an idea, whereas business plans focus on growth projections and risk management strategies once the decision has been made to start the business. Both tools involve input from different professionals and examine factors like the target market and financial costs, but serve different purposes in the planning process.

Uploaded by

Derick Fontanilla
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Edeza, Acet T.

August 15, 2019


BSBA 3A Ma’am Cerezo

Difference of Feasibility and Business Plan

A feasibility study is done before starting a business, when you have the idea for the
business but you want to make sure it's feasible, or advisable. Put another way, is it worth your
time, effort and money to create this business? Several different professionals may contribute
to the study, such as an accountant, entrepreneurs who have opened successful businesses, and
Realtors who advise on the worth of the location and pricing, comparing similar businesses in
the area.

A business plan details how the business will operate. It assumes your feasibility study
has been completed and it was determined the idea is viable. Now 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.

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. 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. 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.

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. A feasibility study is all about business idea viability while a business plan
deals with business growth plan and sustainability.

SIMILARITIES

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

Timing: Both are initially done before the business opens, and can be conducted again later to
determine the next steps on future ideas.

Input: Both include input from several individuals or departments that have different skills.

Format: Both include other documents that are pulled together in order to compose the report.

Components: Some of the issues analyzed are similar, including examining the target market,
market conditions and financial costs.
Usage: Both help the organization's management make decisions, and can also be shown to
potential investors.

DIFFERENCES

Purpose: Feasibility studies determine whether to go ahead with the business or with another
idea, whereas business plans are designed after the decision to go ahead has already been made.

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, whereas business plans
explain how management will deal with the risks so that it will make a profit.

Cost: Feasibility studies can require hiring outside professionals with expertise who will
conduct thorough studies, whereas business plans are written by employees of the business, as
part of their jobs.

You might also like