How To Write A Business Case in 2024: Template & Examples

2023-09-01
Updated At 2024-11-12
Accounting, Finance & Budgeting | Quality & Productivity |

Introduction

Crafting a compelling and comprehensive business case is essential for any professional seeking to initiate a project, secure funding, or drive strategic decisions within an organisation. Whether you're a seasoned manager or a budding entrepreneur, understanding the intricacies of writing a business case is a valuable asset. In this comprehensive guide, we will delve into the world of business cases, exploring what they are, why they matter, the steps to create one, effective presentation techniques, and even provide you with a template and a real-life business case example. Let's embark on this journey towards mastering the art of business case development.

What Is a Business Case?

Before we dive into the how-to aspect, it's crucial to grasp the fundamental concept of a business case. A business case is a well-structured document that outlines the justification for initiating a project, investment, or strategic initiative. It is a powerful tool for decision-makers by providing them with a detailed analysis of the potential benefits, costs, risks, and alternatives associated with a proposed course of action.

A robust business case should answer critical questions such as:

What problem or opportunity does the project address?
What are the expected benefits and returns on investment?
What are the associated costs and resource requirements?
What are the risks involved, and how can they be mitigated?
Are there viable alternatives to the proposed action?

Why Is Writing a Business Case Important?

Writing a business case isn't just another corporate formality; it's a strategic necessity. Here's why:

Clarity and Focus

A well-constructed business case helps stakeholders clearly understand the proposed initiative's objectives, expected outcomes, and strategic alignment. It ensures everyone is on the same page.

Informed Decision-Making

Business cases provide decision-makers with the necessary information to make informed choices. Without this, decisions may be based on assumptions or incomplete information, leading to costly mistakes.

Resource Allocation

Businesses have finite resources. A business case allocates these resources judiciously by evaluating the potential return on investment and ensuring that resources are directed towards projects with the highest strategic impact.

Risk Management

Business cases identify potential risks and propose risk mitigation strategies. This proactive approach reduces the chances of unforeseen setbacks.

Accountability

When a business case is presented and approved, it creates a foundation for accountability. It defines goals, responsibilities, and metrics for success.

Tips for Crafting a Compelling Business Case

Crafting an effective business case requires attention to detail and a strategic mindset. Here are some invaluable tips to enhance your business case writing skills:

1- Start with a Clear Problem Statement

The importance of a well-defined problem statement cannot be overstated. It sets the foundation for the entire business case. Clearly articulate the problem or opportunity your project aims to address. Avoid ambiguity, and ensure that the problem statement aligns with organisational goals.

2- Use Data and Evidence

Back your claims with data and evidence. Robust data strengthens your argument, whether it's market research, financial projections, or case studies.

3- Consider Stakeholder Needs

Identify the key stakeholders and their interests. Tailor your business case to address their specific concerns and objectives.

4- Highlight Strategic Alignment

Emphasise how the proposed initiative aligns with the organisation's strategic goals and objectives. This demonstrates its importance in the bigger picture.

5- Be Realistic with Benefits

While it's tempting to showcase extravagant benefits, maintain realism. Overestimating benefits can lead to credibility issues.

Do's & Don'ts of Writing a Business Case

6- Comprehensively Address Risks

Don't shy away from discussing risks. In fact, addressing risks and presenting mitigation strategies demonstrates your preparedness and transparency.

7- Engage Cross-Functional Teams

Involve experts from various departments when developing the business case. Their insights can refine your analysis and bolster your case.

8- Simplify Complex Information

Make the content accessible to a broad audience. Use clear language, visuals, and diagrams to explain complex concepts.

9- Keep the Executive Summary Powerful

The executive summary is often the first thing decision-makers read. Make it concise, compelling, and a standalone representation of your case.

10- Review and Revise

Before presenting your business case, review it meticulously. Eliminate jargon, check for consistency, and ensure all sections flow logically.

11- Seek Feedback

Don't hesitate to seek feedback from colleagues or mentors. Fresh perspectives can uncover blind spots and improve your business case.

12- Practise Your Presentation

If you're presenting the business case in person, practise your delivery. Rehearsing helps you convey your points confidently.

Tip No.	Tip	Description
1	Start with a Clear Problem Statement	Define the problem or opportunity the project addresses, ensuring alignment with organisational goals.
2	Use Data and Evidence	Support arguments with data such as market research, financial projections, or case studies to strengthen the business case.
3	Consider Stakeholder Needs	Identify and address the specific concerns and objectives of key stakeholders.
4	Highlight Strategic Alignment	Emphasise how the initiative aligns with the organisation's strategic goals, showing its importance.
5	Be Realistic with Benefits	Maintain realistic benefit projections to avoid credibility issues.
6	Comprehensively Address Risks	Discuss potential risks and present mitigation strategies to demonstrate preparedness and transparency.
7	Engage Cross-Functional Teams	Include insights from experts across departments to refine the analysis and strengthen the business case.
8	Simplify Complex Information	Use clear language and visuals to make complex concepts accessible to a broad audience.
9	Keep the Executive Summary Powerful	Create a concise, compelling summary that can stand alone and provide a quick case overview.
10	Review and Revise	Carefully review the document for consistency, clarity, and logical flow.
11	Seek Feedback	Gather feedback from colleagues or mentors for fresh perspectives that can improve the case.
12	Practise Your Presentation	Rehearse the delivery of the business case to confidently present the points and handle questions.

Table: Key tips for crafting a compelling business case

By incorporating these tips into your business case writing process, you'll create a more persuasive document and enhance your ability to influence decisions and drive positive outcomes for your organisation.

How to Present a Business Case

Presenting your business case effectively is crucial to garnering support and approval. Here are some tips for a successful presentation:

Know Your Audience

Tailor your presentation to your audience's needs and preferences. Highlight the aspects that are most relevant to them, whether it's financial metrics, strategic alignment, or risk management.

Tell a Story

Weave a compelling narrative that takes your audience through the journey of the business case. Explain the problem, propose the solution, and showcase the benefits.

Visual Aids

Use charts, graphs, and visuals to make complex data more accessible. Visual aids can clarify your points and engage your audience.

Be Succinct

While providing comprehensive information is essential, avoid overwhelming your audience with unnecessary details. Focus on the key highlights.

Address Questions and Concerns

Be prepared to answer questions and address concerns from your audience. Anticipate potential objections and have well-reasoned responses ready.

Business Case Template

To make the process of creating a business case easier, we've prepared a template that you can use as a starting point:

[Your Company Logo]

Business Case: [Project Name]

Date: [Date]

Prepared by: [Your Name]

Table of Contents

Executive Summary

Provide a concise overview of the entire business case.

Problem Definition

Describe the problem or opportunity that necessitates this project.
Provide context and background information.

Objectives and Goals

Clearly state the project's objectives using the SMART (Specific, Measurable, Achievable, Relevant, Time-bound) criteria.

Alternatives

Explore and document alternative approaches to solving the problem or seizing the opportunity.
Compare the pros and cons of each alternative.

Feasibility Study

Assess the feasibility of the project, including technical, operational, financial, and legal aspects.
Identify potential risks and constraints.

Cost-Benefit Analysis

Quantify the costs associated with the project, including initial investments and ongoing operational expenses.
Estimate the potential benefits, both tangible and intangible.

Risk Assessment and Mitigation

Identify and evaluate potential risks and uncertainties.
Develop a comprehensive risk management plan.

Project Plan

Outline the steps required to execute the project.
Include timelines, resource allocation, and milestones.

Financial Projections

Create financial projections demonstrating the project's return on investment (ROI) over a defined period.

Conclusion

Summarise the key points of the business case and reiterate its importance.

Recommendation

Provide a clear recommendation for or against the project.

Appendices

Include any additional documentation, charts, graphs, or supporting data.

This template includes sections for problem definition, objectives, alternatives, cost-benefit analysis, risk assessment, and project planning. However, you can customise it to fit your specific needs.

Business Case Example

Let's take a look at a real-life business case example to illustrate these concepts in action.

[Your Company Logo]

Business Case: Expansion of E-commerce Platform

Date: September 15, 2023

Prepared by: Jane Smith, Director of Strategy

Table of Contents

Executive Summary

This business case presents the opportunity to expand our e-commerce platform to new international markets, to increase revenue and market share.

Problem Definition

Our current e-commerce platform is limited to the domestic market, limiting growth potential.

E-commerce trends indicate significant demand in international markets.

Objectives and Goals

Objective: Expand e-commerce platform to three new international markets within the next 18 months.
Goals: Increase revenue by 30%, capture 10% market share in each new market.

Alternatives

Alternative 1: Maintain the status quo and focus on the domestic market.
Alternative 2: Explore partnerships with local distributors in international markets.
Alternative 3: Expand our e-commerce platform internationally as proposed.

Feasibility Study

Technical: Our platform can support international expansion.
Operational: We have the expertise to manage international logistics.
Financial: Initial investments are estimated at $2 million.
Legal: Legal and regulatory compliance have been reviewed.

Cost-Benefit Analysis

Costs: $2 million initial investment, $500,000 operational expenses in the first year.
Benefits: Projected revenue increase of $5 million in the first year.

Risk Assessment and Mitigation

Risks: Currency exchange fluctuations, cultural differences, and regulatory changes.
Mitigation: Hedge currency risk, conduct market research, and adapt marketing strategies.

Project Plan

Phase 1: Market research and strategy development (3 months).
Phase 2: Platform adaptation and localisation (6 months).
Phase 3: Launch in new markets (9 months).

Financial Projections

ROI is projected at 150% within the first three years.

Conclusion

Expanding our e-commerce platform to international markets aligns with our strategic goals and presents a significant growth opportunity.

Recommendation

I recommend proceeding with the expansion project as outlined in this business case.

Appendices

Market research data, financial models, and regulatory compliance documentation.

Beneficial Resources to Use

As you embark on your journey to write a business case, consider utilising the following resources:

Business Case Guides

Numerous books and online guides are dedicated to the art of creating business cases. These resources offer in-depth insights into business case development principles, methodologies, and best practices. Guides often come with practical examples and templates, serving as valuable references to enhance your understanding and execution.

Business Case Software

Utilise specialised business case software to streamline the process and create professional-looking documents. Tools like Microsoft Word and Excel are commonly used for business case creation. Additionally, specialised software such as Wrike, Jira, or other project management tools can offer templates, collaboration features, and data visualisation capabilities that enhance your business case's overall quality and efficiency.

Consultation

Seeking advice and guidance from experienced colleagues or mentors who have successfully developed business cases in the past is a valuable resource. A fresh perspective can uncover blind spots, provide practical insights, and offer constructive feedback. Engaging in conversations and consultations with those with relevant experience can significantly enhance the quality of your business case.

Online Courses

Enrol in online courses and workshops that specifically teach business case development. These courses provide structured learning experiences, offering detailed guidance on each process step. They often include interactive elements, case studies, and assessments that reinforce your understanding and application of business case principles. Online courses can be particularly beneficial for those looking to deepen their skills and gain a comprehensive education on the subject.

Templates and Examples

Explore existing templates and real-life examples of successful business cases. Templates can serve as frameworks, ensuring that you cover all essential elements in a structured manner. Real-life examples offer practical insights into applying business case principles in different contexts. Analysing well-crafted examples can inspire and guide your own approach, providing a reference point for style, tone, and content.

Industry Reports and Benchmarks

Research industry reports and benchmarks related to your project. Understanding industry trends, benchmarks, and best practices can strengthen your business case's market analysis and competitive landscape sections. This external perspective adds depth to your document and demonstrates a thorough understanding of the broader business environment.

Financial Modelling Tools

Consider using financial modelling tools for the financial aspects of your business case. Tools like Microsoft Excel with built-in financial functions or specialised financial modelling software can assist in creating accurate projections, conducting cost-benefit analyses, and presenting financial data clearly and compellingly. These tools can enhance the quantitative aspects of your business case.

Legal and Regulatory Resources

Depending on the nature of your project, consult legal and regulatory resources relevant to your industry. Understanding legal and regulatory requirements is crucial for assessing potential risks and ensuring compliance. Legal expertise or resources can help you navigate complex legal considerations and strengthen the risk management section of your business case.

Project Management Methodologies

Familiarise yourself with project management methodologies such as Agile, Scrum, or PRINCE2. Integrating project management principles into your business case can enhance the feasibility and implementation sections. Demonstrating a solid grasp of project management methodologies adds a layer of credibility to your plan.

Market Research and Survey Tools

If your business case involves market research or customer feedback, leverage market research and survey tools. Platforms like SurveyMonkey, Qualtrics, or Google Forms can help collect and analyse data from potential customers or stakeholders. Incorporating data-driven insights from surveys strengthens the market analysis and provides empirical support for your proposed initiative.

Industry Associations and Networking

Engage with industry associations and networking opportunities relevant to your field. Attend conferences and webinars, or join professional forums to connect with industry experts and stay updated on the latest trends. Networking can provide valuable insights, access to industry-specific data, and potential partnerships that can enrich the content of your business case.

Government and Economic Reports

Consult government reports and economic analyses for projects with a broader economic impact. These resources can offer macroeconomic insights, regulatory context, and forecasts that contribute to the overall understanding of the external environment. Integrating data from authoritative sources enhances the credibility of your business case.

Customer Testimonials and Success Stories

If applicable, gather customer testimonials and success stories related to similar projects. Incorporating real experiences and positive outcomes from previous initiatives adds a persuasive element to your business case. It provides evidence of the potential positive impact of your proposed project on customer satisfaction and loyalty.

Risk Management Frameworks

Explore established risk management frameworks, such as ISO 31000 or COSO ERM, to enhance the risk management section of your business case. These frameworks provide structured approaches to identifying, assessing, and mitigating risks. Adhering to recognised risk management standards adds a layer of professionalism and thoroughness to your risk analysis.

In-House Expertise

Tap into your organisation's expertise. Consult with subject matter experts, financial analysts, legal advisors, and other relevant professionals who can contribute specialised knowledge to your business case. Leveraging in-house expertise ensures that your document is grounded in your organisation's specific nuances and considerations.

By strategically utilising these resources, you can create a comprehensive and well-researched business case that benefits from diverse perspectives and expertise. Each resource contributes to different facets of the business case, ensuring that it is robust, informed, and aligned with industry best practices.

Conclusion

Writing a business case is crucial for professionals and organisations aiming to make informed, strategic decisions. By following the structured steps outlined in this guide, utilising a template, and drawing inspiration from real-life examples, you can master the art of business case development. Remember that a well-crafted business case informs and persuades, making it a powerful tool in your arsenal for achieving your organisation's goals and objectives.

If you want to enhance your business case writing expertise further, check out our course, ‘Writing New Product Business Cases.’ This course offers in-depth guidance and practical insights to help you excel in creating persuasive business cases that drive success in your organisation. Don't miss the chance to take your skills to the next level – enrol today and become a business case writing expert!

1. What's the primary purpose of a business case?

The primary purpose of a business case is to serve as a comprehensive justification for undertaking a specific project, investment, or strategic initiative. It not only outlines the rationale behind the proposed action but also provides decision-makers with a detailed analysis of potential benefits, costs, risks, and viable alternatives. By presenting a structured and evidence-based argument, a business case helps stakeholders make informed choices that align with organisational goals.

2. How do I determine the feasibility of a project in a business case?

Assessing the feasibility of a project in a business case involves a multifaceted examination of technical, operational, financial, and legal aspects. Delve into the technical requirements to ensure they are achievable, evaluate operational processes for efficiency, conduct a thorough financial analysis to determine economic viability, and consider legal aspects to ensure compliance. Identifying potential risks and constraints in each area is crucial for ensuring a realistic and holistic evaluation of the project's feasibility.

3. Can I use the provided template for any type of business case?

Yes, the provided template is a versatile framework designed to accommodate various business case scenarios. Its adaptability allows you to modify and customise it according to the specific requirements of your project or initiative. Whether you're crafting a business case for a new product launch, an IT project, or a strategic business decision, the template serves as a solid foundation that can be tailored to suit the unique aspects of your case.

4. What's the key to a persuasive business case presentation?

The key to a persuasive business case presentation lies in telling a compelling story that engages your audience. Utilise visuals effectively, such as charts and graphs, to make complex data more accessible and memorable. Tailor your presentation to your audience's needs, address questions and concerns proactively, and build a narrative that not only communicates the facts but also resonates emotionally. A successful presentation not only informs but also inspires and garners support.

5. How long should a business case be?

While the length of a business case can vary based on the complexity of the project, it is generally recommended to keep it concise and focused. Most business cases fall within the range of 10 to 30 pages. The emphasis should be on clarity and relevance, ensuring that every section contributes meaningfully to the overall argument. A well-structured and succinct business case is more likely to capture and maintain the attention of decision-makers.