Have you ever conducted a feasibility study on any project? what of a Business plan? Do you know the difference? How important is it you? Does it affect your cash flow? Let's discuss...........


4 Differences between Conducting Feasibility Study and Writing 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.

I hope this few words have been able to point out the key differences between feasibility study and business plan. I feel 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.

What is the importance of conducting feasibility study before starting a business? Can conducting feasibility study give your business an advantage and help reduce the high rate of business failure? Well, i advice you read on to find out.

A feasibility report is an often ignored but vital prerequisite to building a successful business from scratch. In fact, not doing feasibility is one of the silly mistakes entrepreneurs make when starting a business. So in this article, i will be stressing the need to conduct feasibility study.

5 Reasons Why You Must Conduct Feasibility Study Before Starting a business[size=8pt][/size]

1. A feasibility study will help you to determine the profitability of the business venture. Before starting a business, seasoned entrepreneurs and investors would want to know if the business would be worth their time, effort and resources. It is worthwhile to know that many entrepreneurs have abandoned solid business ideas because the profitability could not be ascertained on conducting a feasibility study on the business idea.

2. A feasibility study will help prove to the entrepreneur, venture capitalists, lenders and investors the existence of the market, the liquidity of the business venture and the expected return on investment.

3. A feasibility study will help you identify the flaws, business challenges, strengths, weaknesses, opportunities, threats and unforeseen circumstances that might affect the success and sustainability of the business venture. Just like the case of my dad’s business, the business failure and loss of money would have been avoided if we had carried out a feasibility study. We simply jumped in based on someone’s recommendations because we were flushed with cash and we paid dearly for it.

4. Before starting a business, a feasibility study will enable you estimate the financial, human and technological resources that will be needed to ensure the successful launching of the business. Feasibility study helps to reveal the number and level of skill or unskilled workers to be employed and their salary scale.

5. Feasibility study will help you to determine the amount of capital required to start the business. It will also help you in establishing the budget plan, working capital and cash flow projections of the business.

As a last note, my advice to you is this:

“Never invest a dime without first carrying out feasibility study on the business idea.”

What is the importance of conducting feasibility study before starting a business? Can conducting feasibility study give your business an advantage and help reduce the high rate of business failure? Well, i advice you read on to find out.

A feasibility report is an often ignored but vital prerequisite to building a successful business from scratch. In fact, not doing feasibility is one of the silly mistakes entrepreneurs make when starting a business. So in this article, i will be stressing the need to conduct feasibility study.

5 Reasons Why You Must Conduct Feasibility Study Before Starting a business

1. A feasibility study will help you to determine the profitability of the business venture. Before starting a business, seasoned entrepreneurs and investors would want to know if the business would be worth their time, effort and resources. It is worthwhile to know that many entrepreneurs have abandoned solid business ideas because the profitability could not be ascertained on conducting a feasibility study on the business idea.

2. A feasibility study will help prove to the entrepreneur, venture capitalists, lenders and investors the existence of the market, the liquidity of the business venture and the expected return on investment.

3. A feasibility study will help you identify the flaws, business challenges, strengths, weaknesses, opportunities, threats and unforeseen circumstances that might affect the success and sustainability of the business venture. Just like the case of my dad’s business, the business failure and loss of money would have been avoided if we had carried out a feasibility study. We simply jumped in based on someone’s recommendations because we were flushed with cash and we paid dearly for it.

4. Before starting a business, a feasibility study will enable you estimate the financial, human and technological resources that will be needed to ensure the successful launching of the business. Feasibility study helps to reveal the number and level of skill or unskilled workers to be employed and their salary scale.

5. Feasibility study will help you to determine the amount of capital required to start the business. It will also help you in establishing the budget plan, working capital and cash flow projections of the business.

As a last note, my advice to you is this:

“Never invest a dime without first carrying out feasibility study on the business idea.”

Business plan vs feasibility study: https://www.practicalbusinessideas.com/feasibility-study-business-plan-proposal/