{"id":39543,"date":"2024-12-12T11:31:55","date_gmt":"2024-12-12T09:31:55","guid":{"rendered":"https:\/\/www.euruni.edu\/blog\/?p=39543"},"modified":"2025-03-12T11:57:48","modified_gmt":"2025-03-12T09:57:48","slug":"what-is-a-business-case-and-how-can-you-write-one","status":"publish","type":"post","link":"https:\/\/www.euruni.edu\/blog\/what-is-a-business-case-and-how-can-you-write-one\/","title":{"rendered":"What Is a Business Case and How Can You Write One?"},"content":{"rendered":"\n

According to the Project Management Institute, the business case is a “value proposition for a proposed project that may include financial and nonfinancial benefit<\/strong>.”2<\/sup> So, a business case is a formal document outlining the rationale, expected benefits, and potential risks associated with pursuing a business project.  <\/p>\n\n\n\n

It is typically prepared before a significant investment decision is made, serving as a key tool for decision-makers to evaluate the project’s viability and alignment with strategic goals. The business case aims to answer the question: Why should this project be undertaken?<\/em> <\/p>\n\n\n\n

A business case includes various components, such as: <\/p>\n\n\n\n

    \n
  1. Executive Summary<\/strong>: A concise overview of the project, summarizing the objectives, proposed solution, and key outcomes. <\/li>\n<\/ol>\n\n\n\n
      \n
    1. Problem Statement or Opportunity<\/strong>: A clear definition of the problem the business is facing or the opportunity the project aims to capitalize on. <\/li>\n<\/ol>\n\n\n\n
        \n
      1. Analysis of Options<\/strong>: A comparison of different approaches, including the status quo (doing nothing), and the advantages and disadvantages of each option. <\/li>\n<\/ol>\n\n\n\n
          \n
        1. Preferred Solution and Rationale<\/strong>: The recommended solution and the reasoning behind its selection. <\/li>\n<\/ol>\n\n\n\n
            \n
          1. Expected Benefits<\/strong>: Financial and non-financial benefits, such as increased revenue, cost savings, improved customer satisfaction, or enhanced employee productivity. <\/li>\n<\/ol>\n\n\n\n
              \n
            1. Risk Assessment<\/strong>: Identification of potential risks and mitigation strategies. <\/li>\n<\/ol>\n\n\n\n
                \n
              1. Implementation Plan<\/strong>: Timeline, key milestones, resources required, and stakeholders involved in the implementation. <\/li>\n<\/ol>\n\n\n\n
                  \n
                1. Financial Appraisal<\/strong>: Cost estimates, projected revenues, cash flow analysis, and return on investment (ROI) metrics. <\/li>\n<\/ol>\n\n\n\n
                    \n
                  1. Impact Assessment<\/strong>: Evaluation of how the project will affect business operations, employees, and other stakeholders. <\/li>\n<\/ol>\n\n\n\n
                      \n
                    1. Recommendations<\/strong>: A clear statement on the proposed course of action. <\/li>\n<\/ol>\n\n\n\n

                      How to Write a Business Case <\/h2>\n\n\n\n

                      Writing a business case requires thorough research and a structured approach. Here\u2019s a step-by-step guide to crafting an effective business case: <\/p>\n\n\n\n

                        \n
                      1. Define the Purpose<\/strong>: Begin by stating the main objective of the project. Clearly articulate the problem or opportunity the business faces and why it is important to address it now. <\/li>\n<\/ol>\n\n\n\n
                          \n
                        1. Identify the Options<\/strong>: List possible solutions, including doing nothing (which establishes a baseline for comparison). Assess each option based on feasibility, cost, risks, and benefits. <\/li>\n<\/ol>\n\n\n\n
                            \n
                          1. Analyze the Costs and Benefits<\/strong>: Provide a detailed cost breakdown and an estimation of the benefits over a specific timeframe. Use financial metrics like net present value (NPV), internal rate of return (IRR), and payback period to quantify value. <\/li>\n<\/ol>\n\n\n\n
                              \n
                            1. Address the Risks<\/strong>: Identify potential risks and categorize them (e.g., financial, operational, reputational). Propose risk mitigation strategies and assess the likelihood and impact of each risk. <\/li>\n<\/ol>\n\n\n\n
                                \n
                              1. Implementation Strategy<\/strong>: Outline how the project will be executed. Include a timeline, project phases, resource requirements, and dependencies. <\/li>\n<\/ol>\n\n\n\n
                                  \n
                                1. Create an Executive Summary<\/strong>: Although it appears at the beginning, write the executive summary last. Summarize the key points and present a compelling argument for why the project should be pursued. <\/li>\n<\/ol>\n\n\n\n
                                    \n
                                  1. Review and Refine<\/strong>: Once the business case is drafted, review it for clarity, coherence, and accuracy. Consider stakeholder feedback and adjust the document as necessary. <\/li>\n<\/ol>\n\n\n
                                    \n
                                    \"\"<\/a><\/figure>\n<\/div>\n\n\n

                                    Key Differences Between a Business Case and a Business Plan <\/h2>\n\n\n\n

                                    Although both documents support decision-making and strategic planning, a business case and a business plan serve different purposes and target different audiences. <\/p>\n\n\n\n

                                      \n
                                    1. Purpose<\/strong>: A business case is created to justify a specific project or investment, focusing on why it should be undertaken and what benefits it will bring. A business plan, on the other hand, is a broader document that outlines a company\u2019s strategy, goals, and operational plan over a longer period. <\/li>\n<\/ol>\n\n\n\n
                                        \n
                                      1. Scope<\/strong>: A business case has a narrower scope, concentrating on a single project or initiative. A business plan covers the entire business, including marketing strategies, product or service offerings, and long-term financial projections. <\/li>\n<\/ol>\n\n\n\n
                                          \n
                                        1. Audience<\/strong>: Business cases are usually aimed at internal decision-makers, such as senior management or a board of directors. A business plan may target external audiences, such as investors, partners, or financial institutions. <\/li>\n<\/ol>\n\n\n\n
                                            \n
                                          1. Timeframe<\/strong>: Business cases typically focus on a specific timeframe for the project (e.g., 1-3 years), while a business plan might look at a 3\u20135-year horizon or longer. <\/li>\n<\/ol>\n\n\n\n
                                              \n
                                            1. Content<\/strong>: Business cases are more detailed in terms of project-specific data, including cost-benefit analysis, risk management, and implementation plans. Business plans cover a wider range of topics, such as market analysis, competitive positioning, and long-term growth strategy. <\/li>\n<\/ol>\n\n\n\n
                                              \"Business<\/figure>\n\n\n\n

                                              Do People Still Write Business Cases? <\/h2>\n\n\n\n

                                              The business case remains a critical tool in the decision-making process for companies across industries. However, the format and approach have evolved with changes in technology and business dynamics. Traditionally, business cases were lengthy documents with in-depth data analysis. Today, there\u2019s a growing trend toward more agile and concise business cases that focus on key points and leverage visual tools like dashboards and infographics to communicate complex ideas more effectively. <\/p>\n\n\n

                                              \n
                                              \"\"<\/a><\/figure>\n<\/div>\n\n\n

                                              For example, many organizations now use business case templates<\/strong>, one-page summaries<\/strong> or the shorter project charter<\/strong> for smaller projects, emphasizing speed and flexibility. This is especially true in sectors that adopt agile methodologies, where decision-making needs to be quicker, and project justifications have to align with fast-paced development cycles. <\/p>\n\n\n\n

                                              Latest Thinking on Business Cases <\/h2>\n\n\n\n

                                              Recent thinking in business case development emphasizes a value-driven<\/strong> approach. Rather than simply listing financial benefits, business cases are now expected to consider a broader spectrum of value, such as social impact, sustainability, and alignment with corporate values.  <\/p>\n\n\n\n

                                              This trend is especially prevalent in industries where Environmental, Social, and Governance (ESG)<\/strong> considerations are becoming more prominent. This allows the business to take social and environmental benefits into account, allowing a more comprehensive understanding of economic impacts. <\/p>\n\n\n\n

                                              Moreover, technology has influenced how business cases are developed and presented. Tools like data visualization software<\/strong>, scenario modeling platforms<\/strong>, and collaborative project management applications<\/strong> are being used to enhance business case presentations. Decision-makers expect business cases to be interactive, allowing them to explore different scenarios and outcomes rather than passively reading a static document. <\/p>\n\n\n\n

                                              Lastly, there\u2019s an increasing focus on dynamic business cases<\/strong>. In the past, a business case was often created at the beginning of a project and left unchanged. Now, companies are adopting a more iterative approach, where business cases are revisited and updated<\/strong> throughout the project lifecycle to reflect new information, changing priorities, or shifts in the external environment. This flexibility allows organizations to pivot when necessary and ensures that projects remain aligned with strategic goals. <\/p>\n\n\n\n

                                              \"Reasons<\/figure>\n\n\n\n

                                              Final Thoughts <\/h2>\n\n\n\n

                                              While the core purpose of a business case has remained the same, its format, content, and role in decision-making have adapted to modern business practices and expectations. Writing a compelling business case today involves more than just numbers \u2013 it\u2019s about telling a compelling story, aligning with values, and demonstrating real, tangible impact. Learning how to write the perfect business case is just one of many invaluable business skills we teach our students at EU Business School<\/a>, want to find out more? Click here. <\/p>\n\n\n

                                              \n
                                              \"\"<\/a><\/figure>\n<\/div>\n\n\n

                                              <\/p>\n","protected":false},"excerpt":{"rendered":"

                                              According to the Project Management Institute, the business case is a “value proposition for a proposed project that may include financial and nonfinancial benefit.”2 So, a business case is a formal document outlining the rationale, expected benefits, and potential risks associated with pursuing a business project.   It is typically prepared before a significant investment decision is made, serving as a key tool for decision-makers to evaluate the project’s viability and alignment with strategic goals. The business case aims to answer the question: Why should this project be undertaken?  A business case includes various components, such as:  How to Write a […]<\/p>\n","protected":false},"author":2,"featured_media":39480,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[1764],"tags":[],"class_list":["post-39543","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-eu-business-school","post--single"],"yoast_head":"\r\nWhat Is a Business Case and How Can You Write One? | EU Business School<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.euruni.edu\/blog\/what-is-a-business-case-and-how-can-you-write-one\/\" \/>\r\n<meta name=\"author\" content=\"EU Business School\" \/>\r\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.euruni.edu\\\/blog\\\/what-is-a-business-case-and-how-can-you-write-one\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"EU Blog\",\"item\":\"https:\\\/\\\/www.euruni.edu\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"EU Business School\",\"item\":\"https:\\\/\\\/www.euruni.edu\\\/blog\\\/category\\\/eu-business-school\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"What Is a Business Case and How Can You Write One?\"}]}]}<\/script>\r\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What Is a Business Case and How Can You Write One? | EU Business School","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.euruni.edu\/blog\/what-is-a-business-case-and-how-can-you-write-one\/","author":"EU Business School","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"BreadcrumbList","@id":"https:\/\/www.euruni.edu\/blog\/what-is-a-business-case-and-how-can-you-write-one\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"EU Blog","item":"https:\/\/www.euruni.edu\/blog\/"},{"@type":"ListItem","position":2,"name":"EU Business School","item":"https:\/\/www.euruni.edu\/blog\/category\/eu-business-school\/"},{"@type":"ListItem","position":3,"name":"What Is a Business Case and How Can You Write One?"}]}]}},"_links":{"self":[{"href":"https:\/\/www.euruni.edu\/blog\/wp-json\/wp\/v2\/posts\/39543","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.euruni.edu\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.euruni.edu\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.euruni.edu\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.euruni.edu\/blog\/wp-json\/wp\/v2\/comments?post=39543"}],"version-history":[{"count":5,"href":"https:\/\/www.euruni.edu\/blog\/wp-json\/wp\/v2\/posts\/39543\/revisions"}],"predecessor-version":[{"id":39880,"href":"https:\/\/www.euruni.edu\/blog\/wp-json\/wp\/v2\/posts\/39543\/revisions\/39880"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.euruni.edu\/blog\/wp-json\/wp\/v2\/media\/39480"}],"wp:attachment":[{"href":"https:\/\/www.euruni.edu\/blog\/wp-json\/wp\/v2\/media?parent=39543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.euruni.edu\/blog\/wp-json\/wp\/v2\/categories?post=39543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.euruni.edu\/blog\/wp-json\/wp\/v2\/tags?post=39543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}