A feasibility business plan is a study conducted prior to initiating a business plan. Whether you’re an established business launching a new product or an individual with a new idea, a feasibility plan is that part of a business plan that will help you and your investors determine if your idea will thrive.

Is a feasibility report the same as a business plan?

Now there seem to be a mix up between feasibility study and business plan. While some say they are the same, others argue they are not. However we will reveal to you some basic difference 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.