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Class 11 Entrepreneurship Notes · CBSE

Feasibility Study and Business Plan

Feasibility Study and Business Plan — learn to assess business viability through 4 feasibility types and build a plan with 8 essential elements. CBSE Class 11 Entrepreneurship notes.

Last updated: 3 Aug 2026

Notes

What is a Feasibility Study?

Feasibility Study
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.
— Centre for Entrepreneurship, University of Rochester

What a Feasibility Study Helps You Do

The information gathered in a feasibility study helps entrepreneurs to:
  1. List in detail all things needed to make the business work
  2. Identify logistical and other business-related problems and solutions
  3. Develop marketing strategies to convince a bank or investor that the business is worth considering
  4. Serve as a solid foundation for developing business plans

Exam-critical: The 4 purposes of a feasibility study are commonly tested.

Types of Feasibility Studies

Think about it: If you wanted to open a tiffin servicenear your college, you'd need to check: Are students willing to pay? (Market) Do you have a kitchen and delivery bikes? (Technical) Can you afford the setup? (Financial) Will you register as a sole proprietorship? (Organizational)

Features of a Feasibility Study

1

A feasibility study is a process in which an idea is studied to see if it is "feasible" — if and how it will work.

2

A comprehensive feasibility study looks at the entire structure, needs, and operations of a business.

3

A limited or project feasibility study looks at one specific task, program, idea, or problem.

4

A feasibility study looks at both sides, considering advantages and disadvantages, and troubleshoots potential problems.

5

A feasibility study is not a business plan, but serves as a foundation for developing a business plan.

6

A market feasibility study is not a marketing plan, but studies markets and market potential and can be used to support or develop a marketing plan.

7

In addition to a business plan, an investor or lending institution may require the submission of a feasibility study before considering the request for capital.

A Good Outline for a Feasibility Study

Standard feasibility study outline — each section addresses a specific aspect of the business opportunity
#Section
1Introduction
2Product or Service
3Technology
4Market Environment
5Competition
6Industry
7Business Model
8Market and Sales Strategy
9Production Operations Requirements
10Management and Personnel Requirements
11Regulations and Environmental Issues
12Critical Risk Factors
13Financial Predictions — Balance Sheet, Income Statement, Cash Flow Statement, Break-Even Analysis, Capital Requirements
14Conclusion

Opportunity Assessment

Opportunity Assessment
A more in-depth review of a business opportunity including market research and due diligence that includes intellectual property analysis, opportunity development timing, legal liability issues, applications of the opportunity, barriers to entry, industry trends, growth potential, market positioning, competitive analysis, financial projections and pricing, resource requirement analysis and licensing etc.

Preparing a Business Plan

Business Plan
A written summary of various elements involved in starting a new enterprise — how the business will organize its resources to meet its goals and how it will measure progress.

Purposes of a Business Plan

  1. Provides a blueprint of actions to be taken in the future
  2. Guides the entrepreneur in raising the factors of production
  3. Serves as a guide to organizing and directing activities of the business venture
  4. Helps in measuring the progress of the venture at successive stages
  5. Communicates to investors, lenders, suppliers etc., initiating the programmes of the business
1.

Name and address of business

2.

Name and address of entrepreneur

3.

Stakeholder of business

4.

Nature of business and customers