What is the difference between a financial feasibility study and a financial viability study?

What is the difference between a financial feasibility study and a financial viability study Introduction: The Significance of Financial Assessments Hello everyone, and welcome to our video on financial feasibility and viability studies. When it comes to evaluating the potential of a business venture or project, these assessments are indispensable. They provide insights into the financial aspects, helping stakeholders make informed decisions. While the terms 'feasibility' and 'viability' might seem interchangeable, they have distinct meanings and purposes. So, let's dive deeper and explore the differences. Defining Financial Feasibility: Assessing the Possibility A financial feasibility study primarily focuses on determining the viability of a project or venture. It answers the question, 'Can this idea be achieved financially?' This assessment involves an in-depth analysis of various factors, such as market demand, cost projections, revenue potential, and potential risks. By scrutinizing these aspects, the study aims to provide a clear picture of the project's financial feasibility. It helps stakeholders understand if the venture is worth pursuing or if it requires modifications to be viable. Unveiling Financial Viability: Ensuring Long-Term Success While financial feasibility focuses on the initial stages, financial viability looks at the long-term sustainability of a project. It delves into the operational aspects, considering factors like cash flow management, profitability, and return on investment.