What is a business case?

"Business case" is a quantitative and qualitative description of the contribution that a proposed or planned action can make to a company or organisation. It is a tool that assists with decision-making and serves as a planning instrument.

A good business case contains, just like a business plan, a financial justification (costs, revenues, cash flows, etc.) of the action, but unlike a business plan, a business case focuses specifically on the impact of a single action, not on the entire organisation. Topics can range from the introduction of a new product to developing or purchasing a new software system (‘make or buy’ decisions).

A business case is often used to compare different alternatives. A positive business case means that the action improves the organisation compared to the current situation, for example, through extra income, savings, a higher cash flow, or non-financial benefits such as strategic growth or increased customer satisfaction.

A good business case must be clear about the scope, financial criteria, assumptions, critical success factors, time horizon, and possible risks. This way, you get a complete picture of how this action can help your organisation move forward and enable you to make well-considered decisions.