Business Case Examples, Explained in Simple Language

What is a Business Case Used For?

Think of your business case as a sales pitch with robust analysis and justification. The business case is one of the most powerful decision-making tools available to the organization’s leadership team. It is a decision-making tool that provides the leadership team with an assessment of the investment, benefits and risks of a particular decision.

The business case process helps organizations formulate innovations, projects and changes. The business case document is a crucial building block of project success with senior-level involvement. It explains the project’s business value to enable the stakeholders to make decisions.

The business case process critically examines the opportunities, alternatives, project stages, and financial investment to recommend the best course of action to create business value. It demonstrates why the project is needed and the benefits of the project when it is finalized. The business case document entails the facts and data about the problem or opportunity and the recommended solution that is to be implemented.

Why Create a Business Case?

The business case achieves the following goals:

• Demonstrating the value of a proposed innovation or project would generate for your 

  organization.

• Obtaining Board approval for the 

  investment.

• Securing the financial funding and resources to implement the project.

Busines

 

s Cases Help Organizations Make Better Investment Decisions.

DOWNLOAD THE FREE GUIDE

 When Should You Create a Business Case?

A business case is a document or presentation that communicates the high-level information relevant to a critical decision. Business cases are typically used in the context of a new investment, an innovation or a significant change.

The business case is designed to initiate the decision-making about the required funding for a potential investment project.

The business case should be used when the project’s funding is required when presented to decision-makers. The purpose of the business case is to outline the organization’s plan for the project – risk, return, the investment required, time and financial break-even and other elements.

A business case will typically cover the following key areas:

• Key drivers: Background information, financial information, market size, market growth, competition, barriers to entry, and other relevant data.

• Strategy: The strategy and strategic logic section put the business case into context, explaining why the organization is looking to invest.

• Justification: The justification gives a detailed breakdown of the costs, revenue, and net impact of the investment, presenting the case for the investment.

• Risk and opportunity: The risk and opportunity section explains any risks and opportunities associated with the recommendation.

The business case describes:

• The business opportunity or problem.

• The options, possible solutions and their benefits and disadvantages.

• Risks associated with the recommended solution.

• Costs.

• Implementation timeline.

• Consequences for implementing a solution and for retaining the status quo.

• Resources required for the initiative or project.

Who Prepares the Business Case?

Anyone in any professional role may assume responsibility for producing and writing the business case if the decision-makers trust that individual. Thus, line managers, corporate managers, business analysts, internal and external consultants, and IT managers are included. 

The project sponsor or project manager may lead the development of the business case.

The goals of the recommended project, the project customers, users and stakeholders, and the business outcomes and benefits are more important than technology, domain knowledge, or deliverables in a robust business case.

The business case writer focus is on evaluating, analyzing, quantifying and delivering the business value. Poor project results can result from insufficient attention to the details of a business case and accompanying analysis.

Advantages of a Business Case

The business case document or presentation communicates the high-level information relevant to a critical decision.

The business case initiates the discussion about the required funding for a potential investment project. It is your sales pitch!

Developing business cases offers real advantages:

• The business case helps to identify and evaluate alternatives and to compare their relative costs and benefits. A business case is a tool for strategic planning and decision-making.

• The purpose of the business case is to outline the organization’s plan for the project – risk, return, the investment required, time and financial break-even and other elements.

• Aligning stakeholders expectations to the project’s approach, outcomes and benefits of an initiative.

• It increases the likelihood of a project’s success.

• The business case can be turned into a project plan. It highlights the project’s milestones and how to apply the project resources.

• It is easier to see success.

• The strategy section puts the business case into context, explaining why the organization is looking to invest.

• The justification gives a detailed breakdown of the costs, revenue, and net impact of the investment, presenting the case for the investment.

• It explains the risks and opportunities associated with the recommendation.

Business Case Examples and Insights

These eight business case examples highlight the types of business cases organizations are developing to grow their business.

New Product Business Cases

New product business cases justify the investment to introduce a product or service into a highly competitive market. The objective is to prove that the new product will succeed in the market and make a profit. Many factors determine whether a new product will be successful, and several metrics can be used.

A new product business case is a document identifying why a new product needs to be commercialized. The document outlines the business case for developing a new product or service. The business case does not just present the financial justification for a new product but also helps the organization understand the new product’s marketing, management, and operations implications. New product business cases require careful research and analysis to ensure all costs are accounted for.

The business case should address:

• Strategic positioning of the new product/service/innovation in the market.

• Market demand and pricing.

• How quickly an organization can introduce a new product to the market.

• Go to market strategy.

• Initial order quantities for products.

• Product and service delivery model.

• Customer service and supporting clients and channel partners.

New product business cases are used to assess the financial viability of a product or service and to determine the costs 

required.

Business Cases for Equity Investment

A business case for equity investment outlines why a company and its investors should (and will) invest in a venture.

The business case outlines how that investment will be made, the projected costs and revenue from the venture, and the expected return on investment.

The business case details a company’s assets, customers, products, distribution channels, and finances. In addition, it gives information on the company’s strategies and operations that convince investors that the company is a good investment. Finally, it will demonstrate due diligence and explain why the investment is worthwhile.

The business case addresses:

• The opportunity and return on investment for the investor or financier.

• How the business or joint venture will scale up and achieve the projected growth.

• Details where the funding will be applied in the business, such as capital, working capital, operating expenses, etc.

• Explains the return on investment (ROI) from the investment.

A successful business case for equity investment will get the approval for the investment. This business case example seeks to raise an equity investment or finance a business or joint venture.

Software as a Service Business Cases

A Software as a Service (SaaS) business case is used for evaluating a SaaS solution or service and recommends whether a company should implement the SaaS solution or service.

The business case explores the potential solutions, beginning with the organization’s needs. From there, the business case evaluates the potential costs and benefits and considers potential obstacles, such as limited scalability. Finally, the business case suggests the approach that should be taken. The SaaS business case recommendation is aligned to the goals and objectives of the organization, and how the recommendation solves some of the the problems and challenges that the organization is facing.

The business case makes the recommendation for the decision-makers to approve the SaaS project, funding and resources. It explains:

• The business problem you are solving.

• How the client experience will be improved.

• How the application features match with business needs and aligns with the strategic objectives.

• How will the SaaS solution be maintained, supported and serviced.

• Quantifies the strategic, financial and client outcomes.

• Determines the return on investment (ROI).

• Recommends the implementation approach.

Capital Equipment Business Cases

Capital equipment business cases typically involve large, long-term investments, such as capital equipment like IT infrastructure, manufacturing machinery, media equipment, distribution centers and electric powered tugboats. Capital equipment business cases are a written justification of a proposed capital purchase or replacement, which lists the benefits and explanations of buying a particular capital item.

These business cases are a detailed recommendation of the proposed project’s costs and benefits. It is used to set out the justification and the strategic logic for the capital equipment project. The business case document contains detailed financial calculations, project cost and benefits projections. In addition, the business case lists the project’s possible risks and benefits and explains whether the project’s benefits outweigh the costs.

These business cases are intended primarily for internal use within an organization. However, in some cases, they may be used as a basis for external funding.

The business case describes and recommends why the capital project should be approved. In addition, it outlines its intended outcomes, anticipated problems, and methods for overcoming obstacles.

Program Office Business Cases

The program office is the corporate entity that provides strategic oversight of the entire organization’s portfolio of projects.

Business cases to establish the program office describe and recommend what the program office needs to do to accomplish the strategic objectives.  These business cases justify a new program of works to the organization’s board of directors.

These documents are written from a business perspective rather than a technical one. As they are written in a business sense, they are typically constructed in two parts:

• The first part of the business case identifies and quantifies the business case objectives. The document also identifies the program office’s constraints in achieving the objectives.

• The second part describes a proposed course of action that the program office will take to achieve the objectives. The document describes the benefits for the program office, the benefits for the users, and the financial 

  costs.

Business cases developed by the Program Office

Developing a business case is an essential function of the program office, outlining and recommending the commercial justification for business and IT projects.

The program office must develop compelling business cases and recommend the best option to create value. These business cases establish the project’s detailed requirements that the project must meet, and the cost estimates. The business case describes the commercial justification for each project. The financial justification details the financial implications of each activity within the projects.

Start-up Business Cases

A start-up business case is a document used by a company to obtain funding from an investor, a bank, or a partner. This document explains the strategic and financial advantages of using a service-based business model.

A business case is closely related to a start-up business plan, which forms a part. For example, when an investor or bank decides whether to fund your start-up, it typically wants to see a business case. This business case goes into greater detail about your start-up’s business model and its goals.

The business case is a tool that entrepreneurs can use to convince investors that their start-up is a good investment. This document outlines your start-up’s advantages, revenue and operating models. The business case document requests funds used to support the business. It details the financials, revenue, expenses, and any other information a business needs to know to decide whether to invest.

Potential investors will expect an in-depth account that covers all the financial aspects of the business, including projected cash flow, operating and capital expenses, and more. The financial sections of the business case detail the revenue and expenses associated with the business.

Government Grant Business Cases

A government grant business case is document government departments use to justify awarding an organization a grant.

The business case justifies why the organization should receive a grant. The business case explains how the money will be used and who will benefit. They justify the investment to sustain and expand the business.

These business case address:

• The expansion strategy and the proposed investment.

• The market demand, export growth and import replacement.

• The roadmap to expand the business.

• The jobs growth from the investment.

• The outcomes for the industry or sector.

• How the grant will bring forward the investment.

• Why the government grant is needed.

• How the business will fund its contribution.

The business case includes information about the organization’s mission, financial status, goals, and plans.

Infrastructure Business Cases

Infrastructure business case example are an economic business case to justify infrastructure projects or significant industry or sector projects.

Major infrastructure projects take many years to build and cost multiple billions. They also employ thousands of workers at their peak. Along the investment journey, several business cases are developed until the final business case is approved. To create the best possible business case, multiple options are explored and analyzed. Then the shortlist options are evaluated in detail to recommend the best option. These types of business cases also address environmental impacts.

Infrastructure business cases provide a detailed assessment of the costs of the infrastructure investment, the anticipated benefits, and the financial risks associated with the investment. These documents typically include a cost-benefit analysis, and can help potential investors understand the impacts, outcomes and benefits.

The infrastructure business case usually includes the following: Capital costs: This includes the costs of acquiring land and buildings and constructing or refurbishing necessary infrastructure. Operating costs: This includes costs such as utility and service fees, as well as salaries and wages for employees.

Infrastructure business cases are high-value and high-risk projects that are developed in three 

stages:

• Strategic or Initial business

• Preliminary business case

• Full business case.

The preliminary business case or feasibility study can be more than 1,000 pages, including appendices and costing several million dollars. The full business case can cost many millions and taking at least 12 months to develop and include significant community consultations during the process.

Here is the Infrastructure Business Case for the Melbourne Metro rail tunnel project.

Before You Start Your Business Case

If you want to be sure that your business case is the best that it can be, here are a few things that you should keep in mind:

• It creates a compelling and robust business case.

• Use the right business case templates with professional formats.

• Find the proper business case methodology and approach.

• Write the business case for decision-makers to approve your recommendations.

• Presenting the business case as a sales pitch.

• Consider getting business case help.

 A strong business case is often more than a necessity to get your idea funded. It is also something that can be used to get you up and running as quickly as possible.

Our Business Case Guide explains the 5 Steps to Develop a Solid Business Case.

DOWNLOAD THE FREE GUIDE

What to Include in the Business Case Document?

A business case document should explain the following:

• The investment 

  decision.

• Key objectives for the 

  project.

• The business 

  needs.

• Provide necessary background and supporting information to put the investment into 

  context.

• Describe how the investment aligns with the organization strategic business 

  plan.

• Describe the different options explored and why you are recommending this 

  option.

• Provide a robust estimate of the whole-of-life costs of the investment and its financial benefits and the projected financial 

  statements.

• Estimate the non-financial benefits of the 

  investment.

• How to make sustainability core to the recommendation and outcomes.

• Describe the approach to be used, including timelines, resources, the procurement strategy, project governance, and how to embed sustainability 

  practices.

• Rigorously assess the inherent risks, different scenarios and sensitivities, including how they are likely to affect the investment and outline strategies for mitigating 

  them.

• Convey the level of uncertainty surrounding the 

  proposal.

• Provide options for the board and management to consider in reaching a decision.

Business Case Templates

How do you justify a business case?

As a Professional Manager, you know that business cases are used to evaluate and justify projects and decide whether to accept or reject them.

Suppose you are in charge of a business case. In that case, you will need to quantify the financial, strategic and social value that this project represents for your organization.

To inform better decision-making, you will need to consider:

• How to quantify and calculate the value of an investment.

• How to determine the value of the project.

• How to calculate the cost of the project.

• How to calculate the return on investment (ROI) for the project.

• The financial analysis and modelling used.

• How to embed corporate responsibility performance into the recommendation.

Quantifying the business benefits is central in strategic planning, cost-benefit analysis, and business case analysis. Therefore, it is critical to gain a solid understanding of the main drivers of the business case.

To develop a robust business case, you will need to model the business case drivers that drive the strategic and operational outcomes and monetize the financial outcomes and benefits.

The business case drivers:

• Are the key inputs and activities that drive the business case’s strategic, operational, and financial outcomes.

• They have a significant impact on outcomes & benefits.

• They are controllable by the business case.

You will need to model the business drivers to evaluate the relative strengths and weaknesses to make the best choices about the business case before building a financial model.

Our How to Quantify the Financial Value in Business Cases article will give you some hints on how to do that.

Where do business cases go wrong?

We have reviewed and accessed over 50 business cases in the past 24 months.

So, where do business cases go wrong?

The lessons learned from these projects have identified that business cases often go wrong in the following areas:

• Poorly written business cases that fails to convince investors – It is a painful situation when you put your heart and soul into a business case only to receive a “We’re not interested.”

• No business case process – The business case process is inefficient, costly and takes too long.

• Unclear project scope – Inadequate business cases with unclear project scope. This leads to scope creep, which results in rework, cost overruns, delays, etc.

• Poor ROI – The numbers do not add up, and the case is rejected.

• No business benefits – The business cases do not contain any specific benefits. As a result, the organization fails to realize the business benefits.

• Financial analysis is underdone – The financial analysis has missed some of the critical investment, project or operating costs, with no discounted cash flow analysis. The business case is rewritten.

• Flawed option analysis – The business case only considered one option; it did not consider other potential solutions.

• Poor alignment to the corporate plan – The business case investment and timing were not aligned to the corporate plan. The recommendations are not approved.

• No key stakeholder buy-in – The business case failed to obtain key stakeholder support before decision making. Project implementation stalls and is abandoned.

• Risk management – The business case did not apply risk management tools to identify, treat and and mitigate the major risks.

Critical Success Factors

Chase Consulting has been developing business cases for over twenty years. A common characteristic of our successful business cases is that we followed the 5 STEPS framework for developing business cases and used a comprehensive set of templates. This approach ensured that we created high-quality business cases, it saved us time and increased our productivity.

Here are several business cases to highlight the critical success factors:

1. Improving the customer experience.

2. Accelerated investment to enter new markets.

3. Equity investment to scale up the 

   business.

4. Customer service improvement.

5. Service planning to meet population growth.

6. Business expansion to enable revenue 

   growth.

These business cases were successful because they clearly articulated the:

• Recommendations and the investment decision required.

• Strategic, financial and social benefits.

• Options and scenarios evaluated. We undertook scenario analysis and sensitivity analysis to assess the strategic implications of each option.

• Project financials. We strengthen these business cases by including solid financial analysis, such as Net Present Value, Rate of Return, Discounted Pay-Back Period and the Profit to Investment Ratio.

• Project timing, plus the project plan and each milestone.

• Major risks and mitigating actions.

We developed a compelling presentation and a structured business case document that got the required approval, funding and resources and delivered the business case outcomes and benefits.

Strategic Business Case Coaching

If you are a CEO, professional manager, finance director, business analyst, internal consultant of an organization without an effective business case process – we’re here to help.

Using our 5 STEPS Framework, we help you to improve your Business Cases by only focusing on the critical components that matter.

Our online coaching sessions combine our tested methodologies with 1:1 coaching to give you the personalized guidance you need to achieve your professional development goals.

Need Business Case Templates?

Using a set of proven business case templates will increase your productivity, save you time and improve the quality of your business case.

Plus, a high-quality business case makes your project standout amongst the competing priorities within the organization; it may be the key to getting approval and the finances for your project.

So how do you write the high-quality business case with recommendations that stand out? You know, the evidence and recommendations that management wants to support, agree with and approve.

Here’s how …

Learning How to Write Business Cases?

Would you like to save up to 30%-40% of your time and cost in preparing business cases by being trained through our Course and Business Case Templates?

The Business Cases course is designed for individuals and teams who want to build their business cases using the 5 STEPS framework for successful business cases. With over 24 easy to follow lessons you’ll learn to make better business cases and be ready to present them to your board or investors.

The course will benefit professionals and teams from all organizations, including organizations from the private and public sectors, and non-profit social enterprises. You learn how to create, analyze, evaluate & communicate a successful business case to meet your organization’s needs.

Then you’ll be ready to jump straight into using our business case templates and materials. It’s never been easier to plan your own business case so you can save time and be more productive.

required.stages: