What is a business case? Why and when does the company need a business case?
How do I start writing one? What should I include? How do I make it effective?
What happens when you are facing a problem? You probably speak with your friends or family to get advice or you do some research to look for solutions to take action.
In the case of a company, it’s the same. A business case starts when a company is planning a new project or facing a business situation.
You already have the background information on what the company requires. You already came up with your fresh and innovative ideas. Yet, you find yourself overloaded with all this and you don’t know how to start writing a business case? or you don’t know what to include on make it effective?
In this blog, you will learn 4 steps to make your ideas the most or all to write an effective business case, taking into consideration all the information that you should include to get the best rating.
Why a company needs a business case?
A business case comes when a company is facing a situation where they want to improve something that they’ve done in the past, to create something completely new or to get one or more solutions to a problem they are facing.
A business case has been created to expose the company’s situation where the main goal is to find new ideas and strategies to take action.
How do I start?
Once again you don’t know how to start formulating an effective business case. Are you ready to design and deliver what the company wants? These are the 4 steps to write an effective business case:
- Executive Summary
- Project Definition
- Project Organization
The executive summary will be the company’s first impression as an introduction to your business case. Ironically, it is the first step, but the last one to type.
Once your project is written down, summarize all your information and give an overview or your business case. Don’t get specific with details unless it’s necessary. It is important that you make it clear and interesting as it will make your interested parties continue reading.
If you still have doubts about how to make an impactful summary, Shaun Macleod, from Smrt English, shares his expertise to help you.
A financial plan is essential to explain the cost implications. Every cost of your project needs to be considered and affordable for the company. Find two or three different suppliers, materials or any other related tool that requires your solution. Giving options will let the decision-making compare costs vs benefits.
Take into consideration all the financial terms such as cash flow projection, revenue, return on investment, profit and loss as well as risks and alternatives that your project might have.
To learn more about financial terms and models, read the 60 Business Finance Terms and Definitions You Absolutely Should Know.
This step is the most important of your case as here you will explain your ideas and solutions. Why the company should follow them and how you are going to execute them. The following steps will help you establish clarity and order in your case and also will make your readers have a big picture of your project.
All your concepts will turn into objectives. The objectives will be your project’s main goal or goals to achieve. Make them SMART.
For more information about how to write objectives, read our blog “What is an innovation strategy and how do you develop one?”
Everybody likes to get benefits. Think about your favorite product or brand and the benefits that you get from it. For a company it’s the same, the more benefits the more value! Give that personal and unique idea that will make your project attractive to the company and also to the company’s market vs the competitors. Include grids and the scope of work to explain them. Be as clear as possible and don’t forget to emphasize the value for money results that your solution will bring to the company.
For every situation, there will always be different options to follow and take action. If we go back to the question of what happens when you are facing a problem, then you came up with different plans.
When you are planning a strategy or project, or you are solving a situation, so there is always more than one option to follow.
Identify the potential solutions and describe them with as many details as possible. The more details you give, the more information for the reader to understand.
Scope and impact
As mentioned before, the scope of work is very important to define. It will be the document that the project manager or the company will follow as it describes what the company needs to deliver and what is included. Here you need to outline the work of your project that needs to be done in order to achieve the objectives.
ALT TAG: Try to include graphics and visual information on the scope of work
Explain which is the market of the company, in which industry they are positioned and how much market share they have. If your project requires it, follow the PESTLE (political, economical, sociological, technological, legal, and environmental) analysis to give a better background.
This section is for all the employees who will be involved in the project. It describes what the actions to take and who is in charge of the decision making as well as roles and responsibilities to take the action.
In summary, after reading this page you can now start to write your business case. Following these steps will give clarity and order to your solution. It might seem like a lot of information to take into consideration, but always be concise and to the point!
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