Feasibility Study is written to determine if the business is feasible because it serves as analytical tool that includes scenarios for the decision-makers. If they decided not to proceed with the business then there is no need to write a business plan. Business feasibility study determines if the business is profitable or not.
The business feasibility study is conducted during the deliberation phase of the project development cycle while business plan is the design for project implementation phase which presents the guideline for the project plan.
The feasibility study provides calculations, analysis and estimated financial projections as well as the description of the business and statements concerning competition and cash flow projection while the business plan contains plans and strategies to be implemented to grow the business. Just like feasibility study, business plan also provides detailed budgets, monthly and seasonal forecast, management details such as resumes of staff, background and competition. Also, business plan shows revenues expected, overheads and expenses as well as staffing levels with salaries along with employment cost, sales levels, setup costs, building and office costs, utility, telephone, legal, insurance, accounting, supplies cost and legal requirement cost. It also features sales and sales methodology and objectives.
To summary, business feasibility study determines if the business or project is viable because writing a feasibility study is an inexpensive way to safeguard against wastage of investment while business plan will help to maximize potential and minimize overheads.