A feasibility plan is quite similar but different to a business plan. As the name implies, it analyses the feasibility of a business idea.
Some of the key requirements of a successful feasibility plan are:
- Adequate of market research
- Analyse data that is real and comparable
- Discussions with the similar venture owners
- Correct analysis of the feasibility financials
Feasibility plans can be useful for proposed business ventures, in other words,examine the viability of the business idea. The use of the feasibility study can :
- Show narrow business alternatives and explore options
- Allow analysis of the issues and come-up with a solution
- Mitigate the risks and take precautionary actions
- Attract equity investments with solid research data
- Provide quality information for the decision maker
- Well documented process about a new venture
The difference between a feasibility study and business plan is frequently misunderstood. The key difference is:
While feasibility study investigates the options of an idea, the business plan works towards making the idea successful.