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Hi Farah,
There seem to be a mix up between feasibility study and business model plan. While some say they are the same, others argue they are not.
A feasibility study is carried out with the aim of finding out the workability and profitability of a business venture. Before anything is invested in a new business venture, a feasibility study is carried out to know if the business venture is worth the time, effort and resources.
On the other hand, a business plan is developed only after it has been established that a business opportunity exist and the venture is about to commence. This simply means that a business plan is prepared after a feasibility study has been conducted.
A feasibility report is filled with calculations, analysis and estimated projections of a business opportunity. While a business plan is made up of mostly tactics and strategies to be implemented in other to start and grow the business.
A feasibility study is all about business idea viability while a business plan deals with business growth plan and sustainability.
A feasibility study report reveals the profit potential of a business idea or opportunity to the investor, while a business plan helps the investor raise the needed startup capital from investors.
I hope this few outlines have been able to point out the key differences between feasibility study and business plan. It is also good to know that a feasibility report can readily be converted to a business plan. To achieve this, all you need to do is incorporate your business strategies and tactics into the feasibility report; and you are good to go.
Business model Analysis is designed to “plan” in advance how a business or project will be started, implemented and managed In short, a working “blue print” of the entire operation of the business or project. Business plans are commissioned for one of three reasons: Reorganization, investment/funding or a management blueprint for operation.
A feasibility study is designed to discover if a business or project is “feasible” or if it is not In short, does the business or project warrant further investment of time, money and further study or is it a non-starter. A feasibility study is a relatively inexpensive way to safeguard any wastage of further investment.
Entrepreneurs face many challenges when creating a new venture. Although the business plan is one of the most well-known documents, the feasibility study may be just as important. Before the entrepreneur can seek funding, he or she must demonstrate that the idea is truly a good one.
Rochester.edu explained that a feasibility study, “can be defined as a controlled process for identifying problems and opportunities, determining objectives, describing situations, defining successful outcomes, and assessing the range of costs and benefits associated with several alternatives for solving a problem.”
In order to create a feasibility study, entrepreneurs need to define dimensions of business viability including: market viability, technical viability, business model viability, management model viability, economic and financial model viability, and exit strategy viability.
A good outline for a feasibility study includes:
A feasibility study is not the same thing as a business plan. The feasibility study would be completed prior to the business plan. The feasibility study helps determine whether an idea or business is a viable option. The business plan is developed after the business opportunity is created. StrategicBusinessTeam.com explained, “A feasibility study is carried out with the aim of finding out the workability and profitability of a business venture. Before anything is invested in a new business venture, a feasibility study is carried out to know if the business venture is worth the time, effort and resources. A feasibility study is filled with calculations, analysis and estimated projections while a business plan is made up of mostly tactics and strategies to be implemented in other to grow the business.”
While it may seem the feasibility study is similar in many ways to the business plan, it is important to keep in mind that the feasibility study is developed prior to the venture. StrategicBusinessStream pointed out that “a feasibility study can readily be converted to a business plan.” It’s important to think of the business plan in terms of growth and sustainability and the feasibility study in terms of idea viability.
Business model is an easy tool for analysing the business concept through nine sucess keys.
Market feasibility study is a long marketing strategy study including customer need analyses and the Mix marketing the 4 P , usually you find such study part of the business plan.
A business model is a snapshot of how a business is configured to create, capture, and deliver value. This includes its strategy (the value to create), structure (how people, processes, and partners create and deliver the value), and systems (the infrastructure and technology that enables value creation and delivery).A business plan should clearly articulate how these components will work together. It should start with a strategy (which defines your customers and value proposition) and show how you'll invest in structure and systems to, ultimately, deliver against that strategy to make money.
Business models analysis and market feasibility study are interrelated. The first one can not provide accurate information without the other. I would strongly suggest to be conducted in parallel for the country/region of interest.
The feasibility study will present the market absorption capacity for your solution(s), while the business model analysis will determine which model must be applied in order to have the highest market absorption rate, according to the feasibility study.
I would say both are two different concepts.
Business model Analysis is the study of how to evaluate a business strategy and conceptualize methods to improve it using various analytical techniques. It is a continuous evaluation of an existing model or close-to applicable model.
Market Feasibility is an evaluation of how the product or business will be behaving in the market. It measures from Market share to the Market fluctuations that can affect a business/product. In a way it is related to Marketing Analytics , but on a large scale.
Business Model Analysis is done to evaluate how competitive advantage ensures sustainable sources of revenue. Market feasibility study is prerequisite of Business plan it determines the possibility of business success.
Business Model(s) are strategic or management structures inside the organization. for its analysis, Business analyst with help of Stakeholders initiate a change inside our enterprise.
Market feasibility is a study, it involves surveys, interviews, market qualitative and quantitative indicators, and technological feasibility.
Feasiblity is looking at the various business models and analysis including all Financial analysis , PEST , SWOT analysis to see the possiblity of doing a business and to evalute whether it is feasible or not , whereas Business Model is one of the portion in a Feasiblity and also to perform after the business decision is made fo successful business sustainability
Feasibility is taken place to see if the business venture is viable. A business model shows how value is created, captured and delivered
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