How to write a business case: structure and example
A business case answers one simple question: is it worth it? Before approving a project, an investment or a new system, management wants to know which problem we are solving, what it will cost, what it will bring and what the risks are. A good business case answers this in a few pages and makes the decision possible.
When you need a business case
- before a budget for a project or investment is approved,
- when choosing between options (buy, build, do nothing),
- when a project spans several departments and needs a sponsor,
- when applying for a grant or external funding,
- when a project changes so much that the original decision must be revisited.
Business case structure
1. Executive summary – one page for the decision-maker: the problem, the recommended solution, costs, benefits and what you are asking for.
2. Background and business need – the problem or opportunity, why now, and what happens if nothing is done.
3. Objectives and strategic fit – measurable objectives (for example, cut order processing time by 30%) and how the project supports the company strategy.
4. Options considered – at least two alternatives, including “do nothing”, with their pros and cons.
5. Scope and deliverables – what the project delivers and what is out of scope.
6. Costs and benefits – one-off and running costs, financial and non-financial benefits, return on investment.
7. Risks and assumptions – what could endanger the project, how to prevent it, and which assumptions you rely on.
8. Timeline and governance – key milestones, the sponsor, who decides and how success will be measured.
9. Recommendation – one clear sentence: which option you recommend and why.
Common mistakes
- A solution without a problem. The document describes a system but never explains why the company needs it.
- No “do nothing” option. Without it nobody can judge whether the project really pays off.
- Benefits without numbers. “Streamlined processes” is not an objective. A measurable target is.
- Too much text. The decision-maker reads the summary; details belong in appendices.
- Hidden risks. An openly named risk builds trust; a hidden one destroys it.
Example: a business case created in Baaito
The brief we gave Baaito:
A mid-sized trading company (120 employees) keeps customer records in Excel and e-mail. Sales reps cannot see the communication history, offers get lost and management has no view of the pipeline. We want to introduce a CRM system for 25 sales reps. Budget up to €60,000, go-live within 6 months.
Sample document
Business Case — CRM Rollout for the Sales Team
The first pages of a real document Baaito generated from the brief above.
Business Case — CRM Rollout for the Sales Team
Executive Summary
The company is a mid-sized trading company with 120 employees. Customer records are currently maintained in Excel and e-mail. Sales representatives cannot see complete communication histories, offers may be lost, and management does not have visibility of the sales pipeline.
The request is to introduce a CRM system for 25 sales representatives, with a stated budget of up to €60,000 and a target go-live within six months. These parameters are user-stated constraints, not evidence of an approved budget or committed delivery plan.
A decision-ready recommendation is not supportable at this stage because the options, objectives, scope, costs, benefits, risks, stakeholders, and delivery plan have not been provided. Further investigation is required before approval, rejection, or deferral can be substantiated.
Key decision conditions are:
- Confirm the business objectives and strategic alignment.
- Compare viable CRM and non-CRM options using consistent criteria.
- Validate the €60,000 budget against implementation, licensing, migration, training, integration, and ongoing operating costs.
- Confirm whether a six-month go-live is feasible.
- Define measurable benefits, owners, risks, and governance arrangements.
- Identify the authority responsible for the investment decision.
Background and Business Need
The current operating position, as stated in the request, is:
- Customer records are maintained in Excel and e-mail.
- Sales representatives cannot see the communication history.
- Offers may be lost.
- Management has no view of the sales pipeline.
- The affected sales population is stated to be 25 sales representatives within a company of 120 employees.
These conditions indicate a potential need to improve customer-record management, communication visibility, offer tracking, and pipeline reporting. The extent, frequency, financial effect, and operational severity of these issues are TBD — current-performance data, examples, quantified impacts, and dated baseline evidence are required.
The proposed response is to introduce a CRM system. This is a proposed solution and should not be treated as proof that a CRM system is the preferred or only option.
The investment trigger, relevant strategic priorities, current processes, affected departments beyond the 25 sales representatives, and consequences of taking no action are TBD — business-case evidence and stakeholder input are required. A do-nothing baseline has not been supplied and is therefore not added as an evaluated option.
Objectives and Strategic Alignment
The intended objectives are TBD — approved objectives and strategic priorities are required.
The request suggests the following potential outcomes, which remain unapproved and require validation:
- Improve access to customer communication history.
- Reduce the risk of offers being lost.
- Provide management with visibility of the sales pipeline.
- Provide a common customer-record capability for 25 sales representatives.
The baseline, target values, measurement method, realization period, and accountable benefit owners for these potential outcomes are TBD — approved objectives, measures, targets, and ownership are required.
Strategic alignment cannot be confirmed from the supplied information. The relevant corporate strategy, commercial mandate, sales strategy, or management priority is TBD — approved strategic or business alignment evidence is required.
Options Considered
No alternatives or formal options have been supplied. The proposed CRM initiative is recorded below as a request, not as a recommended or approved option. A do-nothing option has not been added because it was not supplied or explicitly requested.
| Option | Description | Cost | Benefit | Risk | Feasibility | Evidence |
|---|---|---|---|---|---|---|
| CRM initiative described in request | Introduce a CRM system for 25 sales representatives. Detailed scope, operating model, product approach, integrations, migration, and delivery plan are TBD. | Up to €60,000 stated as a budget constraint; detailed cost estimate TBD. | Potentially improved communication-history visibility, offer tracking, and pipeline visibility; benefits are unvalidated. | Implementation, adoption, data migration, integration, timing, and operating risks are TBD. | Six-month go-live stated as a target; feasibility is TBD. | Request brief only; option analysis and supporting estimates are required. |
| TBD | Additional viable option required for comparison. | TBD — option cost estimate required. | TBD — option benefits required. | TBD — option risk assessment required. | TBD — deliverability assessment required. | Options analysis required. |
Template used: Business Case (EN)
From a short brief, Baaito prepared the document in a proven structure. Where information was missing, it marked it “to be completed” instead of inventing it.
How to do it faster
Baaito recommends the right template, asks the questions a business case needs and turns your answers and source files into a Word or PDF document. It works on the web and directly in Microsoft Teams and Copilot.
FAQ
How long should a business case be? For smaller projects 3 to 5 pages are enough; for large investments 10 to 20 pages plus appendices. The summary should fit on one page.
What is the difference between a business case and a project charter? The business case justifies why to do the project. The project charter starts it after approval: it sets the scope, team and authority.
Who writes the business case? Usually a project manager or business analyst, together with the sponsor, finance and the affected departments.