Some important questions before writing your business case

Before we look in more detail at how to create a successful business case study, it is important to think about some project-related issues:

• What do we want to achieve with the project? What is the vision?
• What results are expected in the short, medium and long term?
• How does the project fit into the organisation's strategy?
• What are the estimated costs of the project?
• What resources are needed to make it happen?
• What are the dangers and risks and how can they be managed?
• How and over how long will the project pay for itself?
• Who will measure the results and when?

How to write a business case?

The business case is the basis for the project charter and project plan. It is very important that the business case is aligned with reality, otherwise the project will not be in line with the larger business objectives of the organisation and will become meaningless.

Business cases are different for every company, so there are no strict criteria for the content and form of a business case. For example, it is often only a few pages for smaller projects, but for larger projects it is usually a more extensive document.

Business case sample

There are many business case templates, but in all cases we recommend tailoring the content and scope of the document to the needs of the decision-makers. In some cases, it is not always an advantage to have a large document, but it is important to have all the relevant information for decision making. Now let's look at the key areas that may need to be developed in detail to produce an effective business case for your start-up project.

1. Summary

The executive summary is a short version of each section of the business case. It is designed to give managers a quick overview of the project. This section is always the last to be prepared and is very important because decision-makers often have little time, so it is the best way to get their attention.

2. Definition of the project

Here you will find general information about the project start-up and the business objectives. Describe in detail what you are trying to achieve or what the basic problem is and the proposed solution. In many cases it can be useful to show the consequences of not taking action.  

3. Visions, objectives

The next step is to outline the vision and objectives of the project. This will also help to define the scope of the project and the tasks to be completed. For a conscious project start-up, it may be important that the project objectives are in line with the organisational goals and strategy, so it is also useful to outline how they interact. 

4. The main outcome products

It can be a great help if you think about and define at least at a high level what products, services and results you want to deliver before you start. 

5. Success criteria, KPIs

Depending on the type of project you are working on, we will determine what results the project can be considered successful in achieving. It is best - although not always easy - to support these with objective, measurable KPIs and performance indicators. It is also important that project success and product success are not always the same, even if a project is delivered on time and on budget, if it does not deliver the business results or the desired customer satisfaction. 

6. Feasibility analysis

The way to achieve the desired results may not be clear, or there may be more than one technological approach or direction. In this case, it may be useful to carry out a feasibility analysis to identify, weigh up, compare or prioritise possible solutions. This will help us to map our options and make a more informed decision on whether or not to launch.  

7. Estimated cost of the project

The basic principle is that the more advanced the planning, the more accurate the estimate of the expected cost of the project. As the business plan is created before the project is launched, it should not be expected to produce a very detailed and accurate budget. The aim is to provide an order of magnitude estimate of the expected cost dimension, which may be supported by an indicative request for proposal or market analysis in the case of an external partner or supplier. 

8. Estimated business results, benefits

In order to make an informed decision on whether to launch a project, decision-makers have a legitimate expectation to be able to compare the expected costs and benefits. A business outcome cannot be just a direct revenue stream, for example, efficiency gains, cost reductions, reputation enhancement can also be considered as benefits. It is also very helpful later on to identify who will measure the expected benefits and when, as in many cases benefits are not immediately visible after the project is completed. Unfortunately, in most cases, feedback is not given enough emphasis, even though it is a tool for organisational learning and improving the quality of decision-making.

9. Financial evaluation

The purpose of financial evaluation:

• identification of the financial implications of the project
• allow comparison of the project costs with the projected benefits
• ensuring that the project is affordable
• assessing cost-effectiveness
• forecasting cash flow

This is a very important point in the business case, as it shows how the financial benefits outweigh the costs in the project. It is necessary to compare the financial costs and benefits of the project. This can be done through sensitivity analysis and cost-benefit analysis.

10. Market assessment, risks

Examine your market, your competitors and your industry to identify opportunities and threats, and consider the risk factors that could affect the development of your product or service. 

+1. Users, customers 

It may sound strange, but in our experience, projects often start out with objectives defined, but it is not clear to the team that will later implement the project who will use the final product or deliverables. It is critical that it is clear who the project deliverables are for and who will use them, as this can be the basis for refining requirements or even defining development directions later on. Where possible, it is worth validating the idea with potential users before launching. 

The afterlife of the business case

A completed business case is a living document, environmental changes can often override its content, so it should be used regularly as a reference and not be put in a drawer.

Accordingly, the business case should be reviewed and updated at key stages to check that the project remains viable and necessary. This is most often the task of the business analyst. Ideally, the review should take place before the start of a new phase to avoid unnecessary investment of time and money.

As we wrote earlier, a good business case helps to give a solid start to the project, provides structured information to decision-makers and, in case of a positive decision, to the future project manager.

In summary

Writing a business case may seem complicated at first reading, but it is well worth the time and effort. 

It's important to be as concise and clear as possible, as this is the document that will support the justification of your project and help senior management in their decision-making. And although the business case study is prepared at the initial stage of the project, it serves as a reference throughout its life cycle.

If you're a project manager or business analyst looking to expand your knowledge and gain a deeper insight into the world of project management, choose from our list of quality training courses for project managers and business analysts.