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This post is structured as follows.
- What is a business case?
- Identifying the problems
- Analyzing opportunities
- Evaluating all options
- Recommending a solution
- Developing implementation
- Confirming key elements
- Getting the needed approval
As companies begin prioritizing real business value, it’s increasingly important for senior executives to shift their attention toward the right business investments that allow them to achieve this goal.
From developing different products and services to finding new investment opportunities and business ventures, every initiative needs to be accepted according to its business value. That is exactly where a business case comes in, helping to demonstrate a project and its benefits to gain the approval of the board.
What is a business case?
A business case is a document that outlines the rationale for a proposed business venture or project. It is primarily used to persuade stakeholders and decision-makers to invest time, resources, and money into the project.
Writing a business case today is an important skill for anyone involved in business development, as it enables them to effectively communicate the value of a project to key decision-makers, as well as stakeholders.
The purpose of that kind of document is to demonstrate that a proposed business project is viable and that the benefits it will bring will outweigh the costs and risk forecasts. It should be clear, concise, and persuasive, and it should be based on real data and thorough research.
Identifying the problems
Projects aren’t developed easily or aimlessly – they need to have a specific and realistic goal. In most cases, this objective is to solve a certain business problem or explore a new business opportunity. It’s recommended to “lead with the need”.
The first step you need to complete is determining what that existing need or potential investment opportunity is. Then, you will have to describe it in greater detail and identify where it comes from before you can consider the time frame that’s necessary for addressing it.
This can be quite a simple statement, but it’s best to support it with the economic climate and competitive landscape research.
Analyzing opportunities
Once you’ve defined the problem or opportunity, you will have to ensure that the project you’re currently undertaking truly represents the best possible solution. But of course, coming up with the right solutions is a challenging process.
To ensure success, you will need to create a long list of possible solutions, gather enough information about all the potential alternatives, and then analyze them thoroughly. With enough data, you will be able to narrow down your options.
Your list should include several reasonable solutions and detailed assessments based on up-to-date evidence to easily select the best possible option.
Evaluating all options
The next step would be to evaluate how the potential options align with your main business objectives. You can do this using strategies such as quantifying benefits, determining feasibility, considering the involved risks, forecasting the costs, and finally documenting these steps in your business case.
Don’t forget to take into account the societal and financial value created, either. This will allow you to narrow down your list of solutions and opportunities even further, helping you to make the right choice that will likely be accepted.
Recommending a solution
When attempting to determine what is a business case, alignment often comes up as one of the most important components. Prioritizing this factor can enable you to select the best solution that will support business needs and overall goals.
But if you still need to rank the available options to choose the right one, consider implementing a scoring system. For instance, you can rank options according to importance, cost, and benefit, or more complex factors.
No matter the approach, the ideal solution quickly becomes evident, with enough advantages and positive aspects to support the decision.
Developing implementation
When the preferred solution has been selected, your business case should include a good implementation plan as well.
Here, you will be expected to detail the ways you can achieve business objectives with, the project team you expect, the resources you need, methods for mitigating project risks, as well as individuals who will be accountable for every determined milestone.
Throughout this process, you should break down the expenses for each milestone and estimate the total costs of the entire project. Confirming total project expenses is more than often a key to successful business cases.
Confirming key elements
Before finally presenting your business case, you should confirm that it includes all the key elements as well. Create a detailed checklist and ensure you’ve covered all important topics.
This means writing a short executive summary, defining the project, determining the project scope, setting the goals, objectives, and vision, including some background information, defining stakeholder requirements and success criteria, creating a project plan, setting a project schedule and timeline, estimating a budget, developing a communication plan, considering progress reports, etc.
Making sure that your project is effective enough to boost business growth can be another advantageous factor.
Getting the needed approval
With each business case, the goal is to get approval from the executive team, board, investors, or external stakeholders. Once you’ve confirmed the solution and ensured your business case includes all the necessary elements, the final step would be to present your recommendation to the relevant stakeholders.
How you frame your solutions and recommendations will be vital here. Follow the proper business case structure to help decision-makers understand why your project is necessary. By including time and financial projections, as well as determining risks, you will also be answering most of the questions stakeholders will have.
To develop a solid business case, follow the steps outlined above. They include all the important components a good business case should have to ensure success.
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