Difference Between A Business Proposal And A Feasibility Study
A lot of people in Nigeria, Africa, and several other places around the world who want a business proposal mistake it for a feasibility study report and many others who want a feasibility study report refer to it as a business proposal; all simply because it will be submitted to someone. Just as their names are different, the two terms also mean entirely different things and are used for different purposes.
A feasibility study report is research inclined while a business proposal is usually product or service-delivery inclined. Knowing the complete differences between both will have you well positioned to know what is right for you, while making you sound intelligent when talking to people about your goals.
If you’ve ever wondered what the difference between a feasibility study report and a business proposal is, read on:
Reasons For A Business Proposal
Business proposals are usually prepared on solicited or unsolicited basis. When it is solicited, it means there was a Request For Proposals (RFP) announced, and so, you’d need to prepare one for submission, usually in competition with many others. If it is unsolicited, then it means you’re preparing the business proposal after having had a form of meeting, usually sales, and so, have full flexibility to prepare it in the simplest or most robust way possible.
Business Proposal Structure
Here’s a sample business proposal structure:
- Executive Summary
- Table of Contents
- The Body of The Proposal
Reasons For A Feasibility Study Report
A feasibility study report is a document that is usually prepared after a feasibility study has been carried out. It precedes a market research and contains in-depth information on the market size, segments, competition, industry analysis, production costs, marketing costs, and financial projections, amongst others. It is a highly in-depth document that shows how well or not a business idea may perform if executed in a certain way, and gives a comprehensive oversight on the entire project.
In simple terms, if you want to know how viable a business is before you start it, carry out a feasibility study, and prepare the report afterwards.
Feasibility Study Report Structure
A sample feasibility study report structure could look like the list below:
- Product or Service
- Market Environment
- Business Model
- Market and Sales Strategy
- Production Operations Requirements
- Management and Personnel Requirements
- Regulations and Environmental Issues
- Critical Risk Factors
- Financial Projections
To Sum It Up
If you want to get a contract, partnership, or sponsorship, you will need to submit a business proposal. But if you want to know how viable is business is before you take a plunge, then you need to prepare a feasibility study report after carrying out a market research.
What are your thoughts on the difference between a business proposal and a feasibility study report? Let me know by leaving a comment below.