business-case

How To Write A Business Case

A business case is a document that explains the potential ROI of a project and how it will bring an impact the growth of a specific area. Therefore, a business case documents how a growth project will be developed, implemented, and measured. Therefore, the business case is a document that helps a team get aligned on whether a project makes sense from a business standpoint and whether the company should scale it up, thus invest more resources on the same.

The Purpose of a Business Case

Business cases serve several purposes, some of the are:

  • Gather information to create a clear picture of the business’s needs, focus on quantifiable results, and show how the business will benefit from the project.
  • Narrow down the scope of a project to define proof of concept (the minimum viable option to decide whether the initial implementation has been successful).
  • Align the team around the expected outcome from the project.
  • Evaluate whether to scale up the project after the business case.
  • Have an initial ROI of a smaller project to prove the viability of a larger project, therefore align the management around its potential implementation.

The Process of Creating a Business Case

A business case is a team-based project. So, you and your team members need to work together to create the document. Indeed, the main purpose of a business case is to aligh a whole team around a project, to set the team’s expectation to further allocate more resources on the same project.

That is why it’s critical to draft the document as a team effort.

You might create a spreadsheet that outlines different criteria the team is using to evaluate the project. You will then team up and discuss each criterion with your team members to determine whether each is a strong reason to move forward with the project.

Therfeore, usually the workflow is:

  • Define the business goal.
  • Scope the project and narrow it down.
  • Define the key metrics that will define the project’s success.
  • Add the forecast, the expected outcome from a proof of concept, and how scaling up the project might look like in both budget and efforts for the team.

Tips for Writing a Business Case

The following are a few tips for writing a business case:

Describe the problem or objective to be solved.

Do this by identifying:

  • The problem (the goal that needs to be met).
  • The problems and concerns of your audience.
  • What the impact will be for the company if the problem is not solved.
  • Use key research and other supporting materials, such as statistics.
  • Showcase your arguments.

Key takeaways

Of course, no two organizations are exactly alike, and this is why it’s important to research and choose the best method to make the best business case for your project. I believe that the best way to start a project is to do an effective market study and then write a detailed plan. Then, you will have a solid business case to show the board and the team.

Related Business Concepts

Business Plan

business-plan
A business plan is a document that details key operational and financial goals for a business and how they will be achieved in the future. Essentially, a business plan is an exercise in due diligence. While no business plan can accurately predict the future, they do demonstrate and give insight into the likelihood of eventual profitability. This in turn removes some of the entrepreneurial risk associated with investing large amounts of time and capital into a new venture.

Innovation Theory

innovation-theory
The innovation loop is a methodology/framework derived from the Bell Labs, which produced innovation at scale throughout the 20th century. They learned how to leverage a hybrid innovation management model based on science, invention, engineering, and manufacturing at scale. By leveraging individual genius, creativity, and small/large groups.

Business Competition

business-competition
In a business world driven by technology and digitalization, competition is much more fluid, as innovation becomes a bottom-up approach that can come from anywhere. Thus, making it much harder to define the boundaries of existing markets. Therefore, a proper business competition analysis looks at customer, technology, distribution, and financial model overlaps. While at the same time looking at future potential intersections among industries that in the short-term seem unrelated.

Business Scaling

business-scaling
Business scaling is the process of transformation of a business as the product is validated by wider and wider market segments. Business scaling is about creating traction for a product that fits a small market segment. As the product is validated it becomes critical to build a viable business model. And as the product is offered at wider and wider market segments, it’s important to align product, business model, and organizational design, to enable wider and wider scale.

Disruptive Innovation

disruptive-innovation
Disruptive innovation as a term was first described by Clayton M. Christensen, an American academic and business consultant whom The Economist called “the most influential management thinker of his time.” Disruptive innovation describes the process by which a product or service takes hold at the bottom of a market and eventually displaces established competitors, products, firms, or alliances.

Innovation Funnel

innovation-funnel
An innovation funnel is a tool or process ensuring only the best ideas are executed. In a metaphorical sense, the funnel screens innovative ideas for viability so that only the best products, processes, or business models are launched to the market. An innovation funnel provides a framework for the screening and testing of innovative ideas for viability.

Four-Step Innovation Process

four-step-innovation-process
A four-step innovation process is a simple tool that businesses can use to drive consistent innovation. The four-step innovation process was created by David Weiss and Claude Legrand as a means of encouraging sustainable innovation within an organization. The process helps businesses solve complex problems with creative ideas instead of relying on low-impact, quick-fix solutions.

History of Innovation

innovation
Innovation in the modern sense is about coming up with solutions to defined or not defined problems that can create a new world. Breakthrough innovations might try to solve in a whole new way, well-defined problems. Business innovation might start by finding solutions to well-defined problems by continuously improving on them.

Read also: Business Strategy, Examples, Case Studies, And Tools

Read Next: Lean CanvasAgile Project ManagementScrumMVPVTDF.

Main Free Guides:

Scroll to Top
FourWeekMBA