Register now or log in to join your professional community. Before anything is invested in a new business venture, a feasibility study is carried out to know if the business venture is worth the time, effort and resources. On the other hand, a business plan is developed only after it has been established by the feasibility report that the business is worth investing. This simply means that a business plan is prepared after a feasibility study has been conducted. A feasibility study report is filled with calculations, analysis and estimated projections of a business opportunity and its viability for investment. While a business plan provides tactics and strategies to be implemented in other to start, run and grow the business successfully.
What is the difference between feasibility study and project proposal?
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Should you prepare a feasibility study report or a business plan? This is a question that is always asked by thousands of people daily. They want to prepare either of the two but classify both as the same without understanding the clear distinction between a feasibility study report and a business plan. Feasibility study reports and business plans have different goals, although similar. One is more in-depth than the other, and the reasons for preparing each is partly different from the other. While a feasibility study report and a business plan are both analysis and decision making tools, it is highly important to know the difference between a feasibility study report and a business plan at all times, as I have detailed below:.
What is a feasibility study
When you plan to start a business, there are so many things that are to be kept in the mind, some are simple, straightened out within seconds, some are quite elaborate, and are sure to give sleepless nights, but once you are done with these two things, it is said you are halfway there! In simple terms, we need to check with the practical scenario. What if we have overestimated certain things?
Here is the difference between a feasibility study report and a business plan? Can a feasibility study report be converted to a business plan? Find out. In the course of the article, we will be highlighting the major differences between business plan, business proposal and feasibility study. A business plan, business proposal and a feasibility study are all analysis and tools utilised for decision making by organizations.