A student from one of the universities here, who says that she just enrolled recently with the school's Graduate School, queried "if there is a difference between a business plan, a marketing plan and a business feasibility study."
Admittedly, I'm not a student of business but my experience as a market and business researcher as well as my past engagements preparing these types of documents for a very long time, tell me they are most commonly (although sometimes may not be necessarily) pre-operating activities which a company has to go through before they get to the battlefield.
They are in most sense the things-to-do. A checklist of some sort in an attempt to make an objective view of the business' future and from there enable the entrepreneur to formulate a set of strategic directions for implementation. However, what sets them apart is the order by which they are to be carried out.
First of all, a "business feasibility" or commonly referred to as project feasibility or feasibility study is the first and the broadest of all pre-operating activities. It determines the "doability" of the contemplated business or project in relation to their market (size and demand), competition, geo/demo/psychographics, channels, management competence, operations, regulatory compliance, supply chain, revenue models and streams, and such other issues.
When all these things are already factored in, a business plan usually comes out next.
It's not uncommon to find businesses without a feasibility study these days. The reason for this is that entrepreneurs already have some form of understanding of or experience in the industry while a far stronger reason is that it is said to be just an added tool for planning. Thus, a feasibility study is more of an option than a necessity.
As it is now, a business plan in many respects is perhaps the most important. to a business However, the preparation of a written business plan should not be the end-goal of the planning process. The realization of that plan is the ultimate goal.
The writing of the plan is an important intermediate stage. For an established business it demonstrates that careful consideration has been given to the business's development. For a start-up, it shows that the entrepreneur has done his or her homework.
A business plan helps management or an entrepreneur clarify his vision and mission as well as focus on one's business development and prospects. It provides a logical framework within which a business can develop or pursue strategies over the short term – say around three to five years. It also serves as a basis for discussion with third parties such as shareholders, agencies, banks, investors etc. And, it offers a benchmark against which actual performance can be measured and reviewed.
So where does the marketing plan come in? A marketing plan is usually written after the Business Plan and to a certain extent perhaps the most critical component in business planning. Tersely put it, a business plan provides the company's overall strategic direction while a marketing plan provides the timeline, activities and other sub-strategies related to market entry, promotion, presentation and definition of marketing messages and unique selling propositions.
Preparing a satisfactory plan is a painful but essential process. It (planning) forces everyone involved in the business to understand more clearly what they want to achieve, how and when they can do it. Even if no external support is needed, a plan can play a vital role in helping to avoid mistakes or recognize hidden opportunities.
The process of planning (thinking, discussing, researching and analyzing) therefore is just as, or even more, useful than the final plan. So, even if you don't need a formal plan, think carefully about going through the planning process. It could be enormously beneficial to your business.
Remember "failing to plan means planning to fail."
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