A business case is a keystone document to any new project, start-up or business. It is usually a formal document that outlines the reasons for the venture, looks at options and weighs up the cost-benefit of the proposal.

In project management the business case is part of the Initiation phase of the Project Life Cycle and forms part of the Project Initiation Document (PID) in PRINCE2.

How do you write a business case? 

A good business case is concise and it is worth remembering that most ideas can be summarised on one piece of paper. A well-crafted proposal will be interesting to read and the vision should be clear.  Subsequently the document should capture the imagination of those who are sanctioning the project. The business case should also consider the options available and provide evidence to support the recommendation.  This in turn will make the proposal easier to agree to.

What should you include?

There are many different formats available for building business cases but there is no one perfect template.  However, they generally include some common elements, such as the following:

• Overview – An executive summary of the business case. An introduction and background to the project.
• Aim – The issue, purpose or demand. The objective and scope of the project.
• Benefits – The benefits and outcomes of the project.
• Options – Outline of the courses of action available.
• Risks – Identification of the most serious risks for each option and how they be mitigated.
• Costs – Outline of costs for each option and required resources. Investment profile and cost/risk/benefit analysis.
• Duration – Key dates, time constraints and outline schedule.
• Recommendations – Choice of course and next steps.

In project terms these reflect the key elements of the Project Management Triangle (the Triple Constraint model) that reflects the interdependencies between time, cost, scope and quality. The business case should help to identify which are the most important elements and priorities within this relationship.

Business Case Template

One easy way to remember the key elements of a business case is by using The Right Questions method.  If you follow through The Right Questions process it will allow you to explore the questions that you need to answer.  Then these answers can be place into the appropriate format.

For example, if we take some of the key questions from The Right Questions process and combine them with the business case outline from above we can come up with the following business case template:

Once the business case is written and refined it is possible to revisit each of the stages of The Right Questions process again and therefore add more detail. This will provide the basis of your project plan.

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