feasibility study and Business plan
:The definition of the feasibility study
a document that should be prepared when a client or investor is starting a new business, that investor needs to make sure whether the idea of the project is feasible or not
feasibility study comes with the planning stage, which is written after a process of research and critical thinking
many professionals contribute to this study such as accountants, marketers, and economic analysts
Elements of the feasibility study include
the market study
the marketing study
Human resource study
technical study
legal study
the definition of a Business plan
This document is important at the Executive stage of the project
this document reflects how the project will operate in order to achieve financial and other objectives, by depending on a specific organizational structure
The remarkable similarities between feasibility study and business plan
Both of them exist at the pre-opening stage of the project, they are such requirements for the effective implementation
they have the same mission, which is to create a profitable business
points of similarities include
timing, both of them are initially prepared before the business opens, and they are conducted again at the expansion phase
Input, both include contributions of several individuals and departments
format, both include various topics which are organized together to summarize the final report
usage, both are designed to help investors take the proper decision, and can be the tool of obtaining the required finance as well
The noticeable differences between feasibility study and business plan
Despite they are similar, but they are not the same and one can not substitute for the other, points of difference include
purpose
they both differ in their scope of purpose, in other words, feasibility study determines whether to go ahead with the project or to research for another investment project
on the other hand, business plan is designed after the decision is made
Methodology
feasibility studies are research projects, but business plans are expectations for the future
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