CASE STUDY 2 : FEASIBILITY STUDY v/s BUSINESS PLAN

The purpose of a feasibility study is to determine if a business opportunity is possible, practical, and viable. It is a preliminary study undertaken before the real work on the business idea is started to find out the chances of success with business. It serves as a valuable tool for developing a winning business plan.

When faced with a business opportunity, many optimistic persons tend to focus on its positive aspects. A feasibility study enables them to take a realistic look at both the positive and negative aspects of the opportunity.

Determining at an early state that an idea would not work saves time, money and heartache.

A feasibility study helps to make the Go / No go decision with the business idea. Once you have definitely decided to go ahead with the business idea, its a point no return and there is usually no turning back.

A feasibility study is not a business plan. The separate roles of the feasibility study and the business plan are frequently misunderstood. The feasibility study provides an investigating function. It addresses the question of Is this a viable business venture? The business plan provides a planning function. The business plan outlines the actions needed to take the proposal from idea to reality. A business plan is prepared only after the business venture has been deemed to be feasible.

If a proposed business venture is considered to be feasible, a business plan is usually constructed next that provides a roadmap of how the business will be created and developed. The business plan provides the blueprint for project implementation. If the venture is deemed not to be feasible, efforts may be made to correct its deficiencies, other alternatives may be explored, or the idea is dropped.

1- what is feasibility study? Explain

2- How feasibility study different from a business plan?

3- state the importance of feasibility over a business plan?

4- what in necessary to go for a feasibility study? Explain in 3 lines.

5- which is the most significant component under feasibility study? Explain in 3 lines.