Before we consider why there is a need for a business case, we need to fully ascertain what one is. A business case is a written or verbal proposal that demonstrates clear reasoning and intention to a decision-maker, recommending why they should take a particular action. A business case is created with a highly systematic approach, examining all aspects and stages of the proposal.
A business case development increases the value of a project or proposal, giving it legitimacy in the eyes of investors, and reducing the likelihood of unforeseen risks occurring. So, let’s now look at how a business case development can help with your project;
- Helping to build a case for prioritising funding and/or resources for your project, over other projects that are actively competing for support.
- Making decisions regarding outsourcing elements of a proposal.
- Demonstrating to investment decision-makers how your project can be profitable in the long term.
- Procuring the necessary funding and resources for the project within a given time frame.
- Obtaining the approval of board members for the project.
- Any changes made to business operations or manufacturing facilities may increase the efficiency of the project.
Why conduct a business case Development?
A business case details evidence of why a particular project or proposal is the favoured course of action. It demonstrates detailed analysis of the different alternatives available, and highlights the best option for proposal. It provides a framework for monitoring the performance and deliverables of the project at later stages.
What is not appropriate for inclusion?
A business case should not have:
Unfinished or incomplete work - low quality, unedited work could spell the downfall of a project. All text and supporting material should be reviewed before submission to the decision makers.
Details - Always include as much detail as you can in your plan. Decision makers need to be confident of the argument for the business case.
Who owns a business case?
A business case is owned by the 'sponsor' or the individual funding a project. This individual is responsible for ensuring that a project is on track, and any decisions based on the business case are worth the investment.
How can you identify a good business case development?
A business case that accurately identifies and addresses a problem, before explaining in detail all potential courses of action, and highlighting the best one, makes for a good solid business case.
How comprehensive should a business case development be?
A solid business case should be long enough that contains all necessary information needed for the decision makers to take an informed decision. A business case should not be filled with unnecessary technical jargon that might divert decision makers from the intent, it should be clear and concise.