Businesses, projects and other ventures are usually birthed out of one person’s desire to solve a problem they have personally been victim to or experienced vicariously. If you tend to jump at problems and not hesitate to implement a solution for it, you would know by now that you need to step back for a minute when those solution-hungry thoughts come in and plan adequately to find the best solution for the problem and avoid wasting precious time on projects that aren’t worthwhile. They won’t solve the problem anyways! One of the tools you would need is a business case. Business cases can be used to test the viability of any new venture, whether it is a new business idea, new product or new event.
Think of a business case as the defense a lawyer presents for the jury to decide whether or not his or her client is guilty. You are presenting the project, business or new venture as a case to the jury — most likely a project sponsor or an investor or sometimes yourself – anyone that needs convincing. With your case backed by evidence presented to the jury, they get to make an informed decision – whether or not the new venture is feasible and can be continued or started.
What is a business case?
A business case is a brief document that explains why a product or service or business is worth starting or continuing. It assess the business problem, benefits and risks of the proffered solution, its scope, cost, time requirements and capability of the designated team available to deliver. This is used as basis to decide whether or not the business or project is worth venturing into or continuing. It is essentially a decision making tool that not only tests for viability and feasibility but also provides structure for delivery. In existing businesses,the business case will put a new project or product in perspective of the overall vision and objectives of the business, creating a balance of the cost, benefits and risks involved in the new venture.
You can write a business case for a new policy, strategy, product, project or business idea. The business case will give evidence-based proof to investors or project sponsors on what the best decision to make is.
A business case is not a business plan. Though brief, clear and concise, the business case tests the viability of an idea before making any plans to implement. The business plan on the other hand is a detailed thorough document that charts the path for your new business journey,moving it from ideation to market entry. It details what is to be done at each stage and serves as a manual for operation.
Want to test whether or not to breathe life into that new idea or whether your business is worht fighting for, write a business case.
Why is it important?
The business case is as good as its content. If realistically put together, the business case has the potential to :
- explore the rationale for starting the new venture and potentially provide a framework for assessing the venture throughout its lifespan
- provide a clear focus and vision for the new venture.
- present to you a realistic perspective on your new or existing venture so as to make guided decisions
- expose the risks associated with the venture in orde rfor you to determine whether it is worth it
- reduce the time watsed on an unprofitable venture and give you room to take on more projects that are likely to be profitable
- show the different opportunities avaialble to you and defend why the selected line of action is the best
Do you need help writing a business case? We can guide you through it or write it for you. Send us a message