Distinguish between the feasibility study and business plan.
Definition
– Feasibility study is conducted before the business plan is prepared. Only after determining that the business is feasible, the business plan is prepared.
– The business plan follows the feasibility study and the identification of the business opportunity.
Purpose
– Starting a business requires the investment of
– Time
– Money
– Hard work
– Other available resources.
So the purpose of the feasibility study is to know whether the investment would return worthy returns or not. It involves
– Analysis
– Calculations
– Estimates
– Business plan comprises of the specific strategies and tactics that need to be followed to achieve the business goal.
Relationship
– A feasibility study can be transformed into a business plan.
– A business plan can be easily derived from the feasibility study.
Advantage
– We can determine whether a business idea is an economically viable opportunity or not
– Helps to decide the business direction for the growth and sustainability of the business
Additional content on this topic can be found at http://www.eduxir.com/curriculum/cbse/class-xi/entrepreneurship/entrepreneurial-journey/