What is a Business Case? What Should you Know Before Writing it?
By Space Coast Daily // January 24, 2022
Have you encountered the problem of not knowing how to present an idea? For ideas to be truly valuable, you have to make them come true. For this, it is important to document a plan.
In this note we will explain what a business case is, how to write one and much more.
What is a business case?
A business case is a proposal, which seeks to prove to a client, collaborator or investor that the proposed product or service is a good investment.
Why make a business case?
A business case will help illustrate the proposed idea and, depending on the business case, will touch on topics such as: the business strategy, the marketing plan, the vision and what is expected from the project. All this is displayed in the form of a document.
The 4 points to start writing a business case
Next, we want to share with you the 4 points that you will have to keep in mind when you start writing a business case:
1. Research your market
It is important to study the market before you start writing the business case. A good practice is to analyze your competition and substitutes. A good tool to compare is the SWOT analysis, in which it is recommended to do one for each direct competitor with the most relevant points.
2. Compare the solutions
Before going to present any business case, it will be essential to be sure that the approach that will be given to the case is correct. If you’ve done your homework on competitor research, this should be a doddle.
3. Define the objectives
Once you have collected data, analyzed your competition, compared solutions and chosen the business case approach, you have to define a strategy and its objectives. We believe you may be interested in the 5S methodology to better define the objectives and, eventually, achieve them.
4. Present the business case
It will be very helpful that throughout the creation of the business case, you document everything. Finally, the business case is presented in the form of a document. The format of the business case presentation will depend on the organizational culture of the company. Some companies see a long, detailed document as an impediment. In fact, organizations with an agile culture will prefer documentation not to be excessive. To present a case it is important that you speak in public and use effective communication.
Why do projects fail?
Projects increase their probability of failing if they don’t have a solid business case in hand. You must remember that to make a good business case, it must be grounded in reality and aligned with the objectives of the project or organization. The research you do should answer the questions: why, what, how and who. Defining the questions at the beginning will help you steer project controlling on the right track.
Do not forget that a business case will be a document that will grow as you find different challenges for the project. One day you could even sell a business idea to investors.
We hope that this note has cleared up all your doubts about business cases and inspired you to create one for your next project. See you next time!