ERANDIO, DANICA JANE T.

TM601

Differentiate feasibility analysis from a business plan in no more than three (3) sentences.

- The feasibility study is conducted to determine the viability and profitability of a business
initiative. Before investing anything in a new business initiative, a feasibility study is
conducted to see whether the venture is worth the time, effort, and resources. Feasibility
analysis is the process of determining whether a business idea is doable. Preliminary
evaluation to see whether a business idea is worth pursuing. A business plan, on the other
hand, is created only after it has been determined that there is a business potential and the
endeavor is about to begin. This simply implies that a business plan is developed
following the completion of a feasibility study. A feasibility study contains computations,
research, and projected forecasts for a business prospect. A business plan, on the other
hand, is mostly comprised of tactics and strategies to be applied in order to launch and
expand the firm.