In the process of finding investors to Finance the investment project at the enterprise, you may encounter such a problem that one of the potential investors or creditors requires to provide a feasibility study (feasibility study), and someone-a business plan. And here the question arises quite reasonably-what is the difference between a feasibility study and a business plan? Try to understand?
So, feasibility study or feasibility study represents the calculations and analyses of the evaluation of the investment project from the point of view of its economic feasibility. The feasibility study is based on a comparison of the necessary costs to the forecast results, the assessment of the effectiveness of investments and their payback period.
The business plan is a document that contains the results of a comprehensive study of the company’s activities, including the characteristics of production and sales, market analysis and market conditions, and also includes a plan for further business development.
Thus, it can be concluded from the definition that the feasibility study is a justification for the feasibility of various options for the development of investment activities of the enterprise, while the business plan not only justifies investment decisions, but also offers a detailed plan for the implementation of the investment project.
In addition, the business plan and feasibility study differ in their structure. So the business plan has a clear structure, which must be adhered to, which can not be said about the feasibility study. As a rule, the structure of the feasibility study depends on the specific investment project. For example, if a feasibility study for a new enterprise is being prepared, its structure should contain all the important aspects of the enterprise’s activities. If the investment project involves the renovation and reconstruction of fixed assets of the enterprise, in this case, special attention should be paid to the assessment and efficiency of capital expenditures.
Thus, summing up the information provided, the conclusion suggests itself that the feasibility study is the rationale for a particular transaction and is a truncated version of the business plan. There are no other significant differences between these documents.
Taking into account the accumulated experience, our company is ready to offer our services in this direction.