Introduction
Writing a business case is an essential part of any proposal. Whether you are presenting a new product idea, pitching a project, or seeking investment, a well-prepared business case will help you achieve your goals by making sure the proposal is feasible and has a high likelihood of success.
A business case outlines the justification for a proposal by providing a complete picture of the potential benefits, costs, and risks associated with implementing the proposal. With a comprehensive business case, stakeholders can make informed decisions and allocate resources to the most promising projects.
Why Write a Business Case?
Creating a business case is essential to building confidence in the proposal because it helps identify the benefits, costs, and risks of the project. It calculates the potential return on investment (ROI) and highlights the potential impact on different areas of the organization. The business case provides the foundation of the project proposal, which is needed to gain approval from stakeholders, including investors, senior managers, and board members.
A business case helps demonstrate to stakeholders the viability and potential benefits of a project. It can build trust in the proposal with stakeholders, increasing the likelihood of receiving approval for funding. Without a compelling business case, stakeholders may lack confidence in the project, leading them to reject the proposal.
Ways in Which a Business Case Can Impact Business Decisions
A business case is not just a document used to justify projects; it is also a tool to shape business decisions. A good business case provides an opportunity to identify the best course of action for a company by analysing and measuring potential outcomes for both the project and the wider business.
Additionally, when a business case is written thoroughly, it can be used as a benchmark for future projects, similar to a template. By reviewing previous business cases, companies can improve upon previous approaches and learn from past mistakes.
Step-Wise Guide to Writing a Comprehensive Business Case
Writing the perfect business case is essential to be able to build a compelling proposal. To ensure the project receives approval, follow these steps:
Step 1: Define the Project Purpose and Scope
A business case begins with an overview of the project’s goal and its significance to the organization. This first step establishes a clear purpose for the proposal and sets the scope of the project you are proposing.
Include a statement detailing the purpose of the project, the problems it is seeking to solve, and the potential benefits.
Step 2: Conduct a Feasibility Study
In this step, you research and analyse the feasibility of the project. You will need to conduct market research, collect data on similar proposals or projects and assess the social, economic, and environmental impacts.
Step 3: Build a Strong Cost-Benefit Analysis
A critical part of the business case is building a cost-benefit analysis. By estimating the costs of the project and calculating the potential benefits, revenue, and break-even point, you will be able to establish whether the proposal is feasible. It is also important to assess any potential risks or barriers to the project.
Step 4: Create an Implementation Plan
In the implementation plan, you include details about the timeline, budget allocation, and resource allocation. This step will determine how long the project will take, how it will be executed, and how much it will cost.
Step 5: Analyse the Impact on the Organization
In this step, you identify the project’s impact on the wider organization. This includes the impact on employees, customers, vendors, and any other stakeholders involved.
Step 6: Prepare the Proposal
Finally, with all the information gathered, it is time to prepare the proposal to be presented to stakeholders.
Gathering Necessary Information
Research and market analysis are essential elements of a good business case. Primary data sources include customer surveys, interviews, and niche market research. Secondary data sources include online databases, industry reports, competitor information and general news sources.
Best Practices for Presenting a Business Case
With the business case written, it is time to present the proposal to stakeholders. Here are some best practices:
Use a Clear, Consistent Structure
Ensure that the business case follows a clear structure that is easy to follow. Use bullet points, subheadings, and tables to help present the information concisely.
Use Visuals to Support Your Message
Use visuals such as graphs, tables, and images to support the message of your business case. Visuals provide a quick and easy way for stakeholders to understand the key points of the proposal.
Engage Stakeholders from the Start
Engage stakeholders throughout the business case writing process. Receiving feedback and input will help ensure that the proposal speaks to the requirements and needs of stakeholders.
Practice Your Presentation
Practice presenting the proposal to enhance your communication skills and to ensure you are confident when you present to stakeholders.
Using the Business Case for Prioritizing and Allocation of Resources
The business case can be used to prioritise and allocate resources. It can help with budget allocation, industry research, and product development. By outlining project benefits and creating a detailed scope, you can justify why resources should be allocated to projects.
Common Mistakes to Avoid When Writing a Business Case
Financial mistakes such as underestimating project costs and misrepresenting the potential benefits are common. To help you avoid that and others, here are common mistakes to avoid:
Lack of Clarity
A poorly written business case can lack clarity, which can lead to confusion and rejection of the proposal. Ensure all information is presented clearly, and the points are easy to understand.
Forgetting the Impact on Stakeholders
Failing to consider the impact on stakeholders can result in a lack of buy-in from shareholders, customers, and employees. Ensure the proposal addresses the stakeholders’ needs and is aligned with the company’s mission and values.
Lack of Proof to Support Your Claims
Claims should be backed up with data to make them more compelling to stakeholders. Do your market research, gather some numbers- analyze and interpret and write compellingly, taking the time to explain how the numbers support claims.
Lack of Attention to Detail
Ensure your business case is perfect. Ensure that there are no grammar or typographical errors and that all figures and data are correct and consistent throughout the document.
Real-life Examples of Successful Business Cases
Here are examples of successful business cases:
Uber
Uber’s business case was based on providing customers with a more convenient ride-hailing service option. By outlining the benefits to both passengers and drivers, Uber was able to quickly gain traction in the market and displace traditional taxi services. Uber continually invests in R&D, tweaking features to gain competitive advantage.
Apple’s iPhone
Apple’s iPhone business case was based on a desire to launch a device that could combine a phone, camera, and entertainment device into one. With a sleek and sophisticated design, easy to use interface, and marketing, the iPhone quickly dominated the market.
Conclusion
Writing a business case is an essential part of any proposal. Use this step-by-step guide, construct a comprehensive proposal, gather necessary information to put data in context, learn best practices, how to present the business case, and how to use it to prioritize and allocate resources. Follow these steps to write a thorough and compelling business case that will help secure approval and gain traction.
