The Business Case Structure

A business case is a structured argument for a specific investment decision. It has a defined sequence: why the problem exists, what it costs to leave the problem unsolved, what the proposed solution is, what it costs, what it returns, what could go wrong, and what you need approved. Every section is required. A business case with a missing section is a business case with a gap the executive will fill with skepticism.

# Business Case — [Initiative Name]
Prepared by: [Name, Title]
Date: [Date]
Version: [1.0]

---

## Executive Summary (1 page)
- Recommendation: [One sentence — what you are asking them to approve]
- Investment: $[Amount] over [Timeframe]
- Projected return: $[Amount] over [Timeframe]
- Payback period: [Month X] after go-live
- Risk: [One sentence summary of primary risk and mitigation]
- Ask: Approve [specific action] by [date]

---

## 1. Situation
[2–3 sentences: What is the current state of the process, capability, or problem this initiative addresses?]

## 2. Cost of Current State
[Quantified cost of not solving the problem — annually]

### Calculation
| Cost Category | Annual Cost | Data Source |
|---------------|-------------|-------------|
| [Labor cost of manual process] | $[Amount] | [Finance / Estimate] |
| [Error rate cost] | $[Amount] | [Historical data] |
| [Opportunity cost] | $[Amount] | [Estimated] |
| **Total annual cost of current state** | **$[Amount]** | |

## 3. Proposed Investment
[2–3 sentences: What the initiative is, in plain language]

### Scope Included
- [Included item 1]
- [Included item 2]

### Scope Excluded
- [Excluded item 1 — what this initiative does NOT cover]

### Total Cost of Ownership
| Cost Category | One-Time | Annual | 3-Year Total |
|---------------|----------|--------|--------------|
| Software license | $[Amount] | $[Amount] | $[Amount] |
| Implementation | $[Amount] | — | $[Amount] |
| Training | $[Amount] | $[Amount] | $[Amount] |
| Internal engineering | $[Amount] | $[Amount] | $[Amount] |
| Contingency (15%) | $[Amount] | $[Amount] | $[Amount] |
| **Total** | **$[Amount]** | **$[Amount]** | **$[Amount]** |

## 4. Projected Returns
| Return Category | Annual Benefit | 3-Year Total | Confidence |
|-----------------|---------------|--------------|------------|
| Cost reduction | $[Amount] | $[Amount] | [High/Med] |
| Risk mitigation | $[Amount] | $[Amount] | [High/Med] |
| Revenue acceleration | $[Amount] | $[Amount] | [Med/Low] |
| **Total projected return** | **$[Amount]** | **$[Amount]** | |

**Payback period:** Month [X] after go-live
**3-year NPV:** $[Amount] at [discount rate]%

## 5. Risk Analysis
| Risk | Likelihood | Impact | Mitigation |
|------|------------|--------|------------|
| [Risk 1] | [L/M/H] | [L/M/H] | [Specific mitigation] |
| [Risk 2] | [L/M/H] | [L/M/H] | [Specific mitigation] |

## 6. The Ask
Approve: [Specific action]
For: $[Amount]
By: [Date]
Next step if approved: [Specific action within 30 days]