What is a Business Case?
A Business case is a Non-Financial Document that helps persuade an organization to take up a project by giving all the relevant facts. It explains why the project is needed & how it will create a solution. It also includes the pros and cons of taking or letting the project go.
It is an important project document built in the initial phase of the project to convince the client, customer, and stakeholders about the project’s value.
In Simple words, it can be referred to as a project selling tool.
Why do we need a Business Case?
A Business case Involves the assessment of:
- Business Problem/Opportunity
- Solution of the Problem
- Benefits of the Proposed solution
- Required Time & Resources
The above factors are the key pointers that a business case cover. These express the problem due to the current situation & further help depict the benefits of the future business vision.
A Good Business Case brings together benefits, disadvantages, costs & risks of the current business & the future vision so that the management team can decide if the project should go ahead.
When to use a Business Case?
The Business case is needed when resources or expenditure of a project has to be justified. Approval is usually sought from the stakeholders or any other interested parties.
How to Write a Business Case?
The purpose of the business case is communication. Therefore, each section should be written keeping the intended audience in mind.
Moreover, it should only contain enough information to help in decision-making. One should always write a business case keeping the below points in mind:
- Do Proper research before proceeding with a business case preparation
- Be Brief & convey only the essential information
- Make it interesting & clear
- Minimize the use of Jargon
- Describe Future vision
- Demostrate Benifits & value
- Keep the consistent style & readability
The Project Team should be involved in the development of the business case. However, only a few of the members, having overall project experience, should be engaged in writing the business case. The Business case should result from the whole team’s efforts as it gives a broad range of perspectives.
Elements of a Business case
The Key Elements of the Business Case include:
- Executive Summary
- Situational Assessment & Problem Statement
- Project Description
- Solution Description
Benefits of a Business case
A Business case benefits an organization in many different ways. A few of them are as mentioned below:
- Gain Control of Resources
- Calculate the Potential benefits of the project
- Simplify Development of the financial Justification
- Provide a consistent message to many audiences
- Share & organize thoughts, activities & Knowledge