A business case template is an effective tool used by the organizations, companies, and businesses to ask for investments from key stakeholders and investors. This document promotes and guarantees that the investment is important for terms of the strategies and direction the organization is heading towards.
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How a business case works?
Business cases are necessary for the successful planning and completion of a project. It is used as a point of reference for planning, implementing and evaluating a project.
In the planning stages of a project, the creation and establishment of a business case assist you in defining the ultimate objectives and final goal of the project. This information is useful for everyone involved such as stakeholders, investors, project team and the project manager. The business case should move the conversation from ‘the things that we are going to build’ to ‘the reason that why we are building them.’ This states that why the project there is a need for the project to start. Moreover, this document also clarifies all the expectations and any misunderstandings or disagreements about the goals and objectives.
When the project is progressing, the business case becomes the reference point or the guide. This way, all of the participants are moving towards the same direction. It keeps the project manager informed on the status of the project. It also informs them what steps are required when other options come to light. With the help of a business case, the stakeholders keep track of the whole project and the progress of it. After that, they decide whether they should continue with it or not to reach the goals and objectives of the company.
When the project is finished, the business case is then used to evaluate how well the project was carried out. You can also use it to identify whether or not the project was able to convey all the expected benefits and reach all the set objectives. If not, then start asking questions. Also, analyze each part of the project to learn what had gone wrong. You should also check Business Expense Spreadsheet.
Important components of a business case template:
You should include the following important elements in a business case in order to make it effective;
This element includes the reason that why the project was initiated and considered. You should state the problem or issue that led to the formulation of the project and the background of the project.
Here, you have to include the solutions to the issue along with any results of the solutions. Specify which solution was selected. These are required to understand the different options which were considered. Also, indicate that why that particular solution was selected over all others. You should also consider that the options which were not selected. This is because these options may turn out to be the better option as the project progresses.
The Benefits and Limitations
Here, include the positive results that project will yield and that will help the organization. During the implementation of the project, any risks or limitations which might occur, state how to deal with them or minimize them. Mention the benefits and when they are expected to come or be realized. These benefits are basically the goals that organization wants to get out of the investment.
The Timeline and Budget
Plan the time that is required to complete the project. Also, plan out all the funding or budget needed to complete it. If the operational and maintenance costs are needed for the benefits of the project to be realized then also include them. These have to make comparison with the expected benefits. This way, you can identify either your project is feasible and worth starting.
Any major opportunities or risks
Any opportunities that can hasten the likelihood of the benefits being attained can endanger the entire project and its success. Opportunities and threats can change constantly. This indicates that at any point your project might cease to be viable.
How do you make your own business case template?
Here are the steps and guides that you should follow while making your own business case template;
- At first, you have to do a few things before start writing your business case. Making a business case takes a lot of time and effort so before developing your business case, you’d have to evaluate.
- The first thing you have to do is to define and analyze the situation that started the need for the project.
- After that, identify all the resources that you require and the data sources that would be needed to support your business case.
- When you have gathered all the data, you can begin creating initial plans for your business case. Include the key people who will be able to provide relevant input or assist you in making decisions.
- It is important for your business case template to include an executive summary. It is an overview of your whole business case.
- Since investors and stakeholders have a tendency to only read the executive summary, you should also include any predicted returns on investment.
- Make your problem statement and also include an analysis of the situation which basically explains the circumstances behind the issue.
- Next, make a list of probable solutions to the issue you are faced with. Include the detailed description of the all the possible solutions.
- Now, include the project description that contains all the details about your project.
- Do the cost-benefit analysis that would be an assessment of any costs and benefits for all possible options.
- It is also essential to incorporate the predicted financial benefits to the company.
- In the end, provide any suggestions for your project on how it should be executed and implemented.
In conclusion, a business case template is an effective business tool that assists in the successful planning and completion of a project. Before starting a project, making a business case is very important. Include all the elements that make your business case effective.