The project business case is a document that explains the business plan of a company that it is trying to achieve through a particular project. It also gives the reasons why someone should invest in a project. It is developed when a project is in its early stages. Likewise, it outlines the why, what, how, and who is necessary to complete a project.
A project’s business case helps the stakeholders to decide whether to invest in the project or not. It also explains particular clients’ benefits from the project’s deliverable.
A project’s business case is a way for the project managers to explain the project’s purpose and why it should be executed. It includes how the benefits of a project outweigh its cost. It is developed during the project initiation phase.
After the project manager has proposed the project’s business case in front of all the stakeholders, it is up to them to approve it or reject it. If the stakeholders approve a project and there are no conflicts, the project team starts working on the project.
The Need for Project Business Case
A project business case is needed to prove to the clients and other stakeholders the value of a project and give them a reason to invest in it. It summarizes the financial appraisals, proposals, and marketing strategies in a single document. It provides an overview of the advantages of a project.
Elements of a Project Business Case
Usually, a project business case includes the following elements:
- Comprehensive summary: A short description of each section of your business plan.
- Project Definition: This part explains what will be done in some detail.
- Vision and Goals: This part includes the goals you want to achieve by the end of the project. It helps you define the scope and the costs of the project.
- Scope: It defines the applications of the project.
- Strategy: Describes different marketing strategies and other strategies that will be followed for the completion of the project.
- Options considerations: This part explains what different options were considered before a particular strategy was adopted.
- Benefits and Timelines: This part explains what benefits different stakeholders will get after completing the project. It also defines when a project will start and end.
- Costs and Finances: This part includes the cost of the entire project and the marketing and maintenance costs.
- Profit on investment: Each stakeholder’s profit when they invest in a project is mentioned in this section.
- Risks: This section mentions the risks associated with the project.
How To Write a Business Case?
Before writing it, make sure you perform the following activities:
- Make sure to research your competition, current market, and the existing products or services you are going to develop.
- Compare different project management approaches and choose the best one.
- Finalize your business strategy.
- Execute the data and explain the project strategies and business goals.
- Note down everything.
The Complexity of a Project Business Case
The complexity of it depends upon different factors. These factors include:
- The size and complexity of the organization.
- The size and scope of the project.
- The benefits that a project proposes.
- The number of stakeholders.
Conclusion
A project business case is a document that explains a project from a business perspective. It describes the business goals that a company and other stakeholders will achieve through a particular project. However, it should be updated regularly over time, as new realizations will be highlighted as the project goes through different phases.