What’s the Difference?

Feasibility Study: Can it work?

A feasibility study is about validation and risk reduction. It answers one core question: “Should we do this at all?”

It tests whether an idea, project, or expansion is viable in the real world, by examining:

• Market demand — is there a real problem people will pay to solve?
• Competition — can you compete and win?
• Financial viability — will it make money, and when?
• Operational requirements — do you have the resources, systems, and capability to deliver?
• Risks — what could go wrong, and how do you mitigate it?

In short, a feasibility study gives you a clear go/no-go decision, often saving hundreds of thousands of dollars in wasted investment.

Business Plan: How will it work?

A business plan comes into play only after feasibility has been established.

Where a feasibility study asks “Should we?” a business plan asks “How will we?”

It focuses on:

• Business structure and ownership
• Detailed marketing and sales strategy
• Operational plans and staffing models
• Funding and investment needs
• Long-term financial projections

A business plan is a roadmap for execution. But without feasibility, it risks being a very detailed plan for a business that won’t actually succeed.

The Costly Mistakes I See Business Owners Make

Mistake #1: The “Ready, Fire, Aim” Approach I’ve watched manufacturers spend $500K+ on new product lines without properly testing market demand. One client came to me after investing heavily in equipment for a product that, while technically excellent, solved a problem their target market wasn’t willing to pay to fix.

Mistake #2: The “Over-Planning Trap” On the flip side, I’ve seen business owners spend months crafting 50-page business plans for ideas that could have been validated or invalidated in a few weeks with proper feasibility testing. Perfect planning for imperfect opportunities is still a waste of time.

Mistake #3: The “Gut Feeling” Gamble “I know this will work” is not a business strategy. Even experienced entrepreneurs can fall victim to confirmation bias, seeing only the information that supports their idea while ignoring critical warning signs.

Mistake #4: The “Friends and Family Focus Group” “My friends and family think it’s a great idea!” I hear this constantly, and it’s one of the most dangerous validations you can rely on. Your personal network wants to be supportive—they’re not your target market, they’re not spending their own money, and they’re certainly not going to give you brutal honesty about flaws in your concept. I’ve seen countless businesses fail because they mistook polite encouragement for market validation. Real customers with real problems spending real money—that’s the only validation that matters.

When to Use Each (and Why Order Matters)

Stage 1: Feasibility Study

Use this when you’re considering:

• A new product or service launch
• Market entry or geographic expansion
• Major operational changes (like automation)
• Acquisition opportunities
• Franchise development
• Diversification into new industries

It’s the critical “test flight” before you commit resources.

Stage 2: Business Plan

Once the feasibility study confirms that the opportunity is viable, the business plan becomes your tool to execute it with clarity and confidence—whether for:

• Internal guidance and team alignment
• Securing investment or funding
• Scaling up operations
• Setting performance benchmarks

Skipping the feasibility stage is like drawing up blueprints for a house before checking if the land is stable enough to build on.

Real-World Example: How This Saved One Client $300K

A manufacturing client approached me with plans to expand into a new market segment. They were ready to hire sales staff, invest in new equipment, and launch a marketing campaign.

Instead, we conducted a 4-week feasibility study that revealed:

• The target market was already oversaturated
• Their cost structure couldn’t compete with established players
• Regulatory requirements would add 18 months to their timeline
• A slightly different market segment offered 3x better opportunity

Result: We pivoted the strategy, avoided $300K in wasted investment, and they successfully entered the alternative market 6 months later with a 35% profit margin.

What a Proper Feasibility Study Actually Looks Like

Many business owners think feasibility means “asking friends what they think” or “doing some Google research.” A professional feasibility study is far more rigorous:

Market Analysis

• Primary market research (not just surveys, but actual customer validation)
• Competitive landscape mapping
• Market size and growth trend analysis
• Price sensitivity testing

Financial Modelling

• Revenue projections based on real market data
• Cost structure analysis
• Break-even calculations
• Sensitivity analysis for different scenarios
• ROI projections

Operational Assessment

• Resource requirement analysis
• Supply chain evaluation
• Technology and infrastructure needs
• Skills gap identification
• Implementation timeline

Risk Assessment

• Market risks (demand changes, competition)
• Operational risks (supply chain, staffing)
• Financial risks (cash flow, funding)
• Strategic risks (timing, execution)
• Mitigation strategies for each identified risk

The Questions a Feasibility Study Must Answer

Before you invest significant time or money, you need honest answers to:

1. Is there real demand? Not “would people buy this?” but “will people buy this at the price we need to charge?”
2. Can we compete and win? What’s our sustainable competitive advantage?
3. Will it be profitable? Not just revenue, but actual profit after all real costs.
4. Do we have the capability? Skills, resources, systems, and capacity to deliver.
5. What could go wrong? And how would we handle it?
6. Is the timing right? Market conditions, our business situation, competitive landscape.

When NOT to Do a Feasibility Study

Feasibility studies aren’t always necessary. Skip the formal study if:

• You’re making small, low-risk improvements to existing operations
• You’re copying a proven model in your existing market
• The investment is minimal and reversible
• You’re testing something through a small pilot program

But for any significant investment of time, money, or resources—especially in new markets or with new products—feasibility testing is essential.

The Bottom Line

Successful businesses don’t rely on guesswork. They validate their ideas through feasibility studies before committing to the detailed execution of a business plan. Both are vital, but the sequence matters.

At FBS Consulting, we’ve helped companies avoid costly missteps by validating opportunities before scaling them—and then building the operational systems and strategies to bring them to life.

The best business plan in the world can’t save a fundamentally flawed idea. But a great idea without proper execution planning will likely fail too.

That’s why you need both—just not at the same time.