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

It focuses on evaluating the technical, economic, legal, and operational aspects of the proposed business venture.

It serves as a roadmap for the business’s future direction and is typically used to attract investors, secure financing, or guide internal operations.

Scope

A feasibility study typically covers a broad range of factors, including market analysis, competitive environment, technical requirements, regulatory considerations, and preliminary financial projections.

A business plan delves deeper into specific aspects of the business, such as marketing strategies, operational plans, organizational structure, sales forecasts, and detailed financial projections.

Goal

Its goal is to provide a preliminary assessment of whether the business idea is viable.

Its goal is to provide a comprehensive overview of how the business will be structured and operated.

Time

A feasibility study is conducted early in the business development process, often before significant resources are invested.

A business plan is typically developed after a feasibility study has been completed and the decision to move forward with the business idea has been made.

Users

The users for a feasibility study includes entrepreneurs, business owners, and potential investors who are evaluating the viability of a business idea.

The users for a business plan includes investors, lenders, partners, employees, and other stakeholders interested in understanding the company’s objectives, strategies, and financial prospects.

Information

It provides with the information needed to make informed decisions about whether to proceed with the venture.

It provides information which is often used to secure funding or attract partners to the business.