Question

How does a feasibility analysis differ from a business plan

Answer 1

Feasibility analysis is generally the preceding step in the process of starting a new business venture. Feasibility anaylsis is perfomed to check weather a particular business idea is feasible or not i.e. will it be profitable or not. While a Business Planis laid out to define the various steps in starting and carrying out the business only after it is concluded that the business idea is feasible.

Aslo, feasibility analysis has calculations and projections to check the profitability of the business, the payback period and the return on investment from the business. Where as business plan generally has the various methods and strategies of carrying out the business. The strategies could be marketing, finnance , operations etc.

A feasibility analysis is performed just once that is initially, if the reports shows business idea is profitable, the business plan is made. Whereas Business Pplan is a continuous process. It runs throughout the lifetime of business as the strategies needs to be changed at rehular basis to cope up with competitiors or adapt to market etc.

Thus Feasibility analysis is performed to check the viability of the business venture and Business plan is made to designate various strategies and steps of performing the business.