Feasibility study is prepared to determine if the idea or a project is viable before any investment is committed. This involves preparation, review and analysis of all the data that is obtained to decide whether or not to go ahead with the project. Once the decision is made to go ahead with the project, a detailed business plan should be prepared.
Business Plan is essentially a road map describing what a business plans to do and how it plans to do it. It is often considered by business owners that a business plan is nice to have but not a necessity. Business plans are not just “nice” but, in fact, they are vital to the short and long term success of business. Business plans are both about getting money and clarifying the business concept. Investors, banks and financial institutions insist on formal business plans before they decide to make any commitments. A business plan forces you to answer the tough questions before starting your business.
Business plans are, in essence, an entrepreneur’s best friend – they protect you from blindly jumping into a business venture without fully weighing the business and financial risks relative to your own personal risk tolerance.
Things that are most certain to occur without a business plan in place –
