A business case is a written document containing the reasons for coming up with a new business venture proposal in a to-the-point and lucid fashion. The primary function of a business case written for any organisation is to ensure funding for the business. Most organisations have a certain business case format pre-selected for its employees to follow when writing a case for them. These are called Business Case Templates. Keeping in mind the importance of the document in any firm looking to expand its horizons and the considerable amount of work a project management business case template requires to be put in for success, it is important that there be guidelines as to the features of an ideal business case. Here are a few of them.
Précis or Summary
The first page of the business case should invariably be a one page summary of what lies within. Business case templates that are long and arduous to read will most probably not be given the full attention they deserve by the number of professionals that read it. Even so, the impact of the business case can be maximised by putting everything in a short and concise manner at the top of the document.
A Summary, sometimes called an Executive Summary, typically contains a brief paragraph on what the document contains, what it is intended to achieve, and what conclusions the data contained within has come to. If it interests the reader, it would be likely to be read in detail, so the summary has to be lucid and optimistic.
Feasibility Survey
A study ought to be conducted showing whether the business case being put forward has good chances of succeeding. In other words, it would involve setting a certain sum of money as minimum required profit to be made in certain duration of time, and would be followed by a study explaining whether that sum of money would be possible to be made in the given number of years.
Gantt chart
A Gantt chart is a visual demonstration of the time-schedule of the business being proposed. It would show people how you intend to grow your business over the span of months and years, and where you intend to end up.
GPA/ROI Analysis
GPA Stands for Gross Profit Analysis and is basically an estimation of how much profit a certain business case is capable of yielding. It’s a common term to be used in cases where a lot of the deciding factors of business productivity are unknown. The estimation of gross profit is typically a linear (sometimes a non-linear) programming problem that optimises profit based on a set of given constraints and a cost function.
ROI Stands for Return on Investment. It deals with the starting capital, the working capital, the fatigue factor of equipment, the inflation and depreciation of the market etc. and comes up with how much return can be expected on investment at this point over a certain number of years.
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