Business Case, Case Study, or Proposal?

Three documents that get confused, and only one of them belongs on this page:

• A business case is internal. It argues for an investment decision — this project, this purchase, this change — by comparing options and showing what each costs and returns. Its reader controls the budget.
• A case study is external marketing. It describes what you did for a customer and what changed: situation, action, result. Its reader is a prospect.
• A business proposal is also external — a supplier offering to do work for a client at a price.

The distinction from a project proposal is finer. A project proposal describes a project and asks for approval to run it. A business case interrogates whether the project is worth doing at all, against alternatives — and in formal project governance it stays alive for the project’s whole life, revisited whenever the numbers change. Many organizations use one document for both; if yours asks for a business case specifically, they usually want the options and the financials.

Appraise Options — Including Doing Nothing

This is what makes it a business case rather than a request for money.

A document presenting one course of action and asking for approval leaves the reader with only two responses: yes or no. A business case presents the realistic alternatives, shows what each would cost and deliver, and recommends one — which lets the reader engage with the reasoning rather than simply accepting or refusing it.

Always include the do-nothing option, and cost it. It’s the alternative every decision-maker has in mind, it’s the one nobody bothers to quantify, and quantifying it is frequently the strongest argument you have. “Continuing as we are costs £46,000 a year in overtime and loses us roughly two customers a month” changes the conversation considerably more than a list of features.

Three or four options is usually right: do nothing, a minimal fix, the recommended option, and sometimes a more ambitious one. Include an option you’re not recommending and say honestly why — a business case where every alternative is transparently a straw man reads as advocacy, and experienced readers discount the whole thing.

Options Appraisal Example

Look at what the table does. Doing nothing is costed, and turns out to be the most expensive line over three years — which is the argument. Option 4 is included and rejected, with a reason, which signals the analysis is honest rather than pre-cooked. And Option 2’s risk is a specific past failure, not a generic caution, which is far harder to dismiss.

Free Business Case Templates in MS Word

Each template below is editable in Word. Complete the options section first — it’s the part that shapes everything else in the document.

Grab this Business Case Template from the download button below.

Grab this Business Case Template from the download button below.

Grab this Business Case Template from the download button below.

Grab this Business Case Template from the download button below.

Grab this Business Case Template from the download button below.

Writing Benefits That Survive Scrutiny

The second thing that decides whether a business case gets approved. Most are rejected not because the idea is bad but because the benefits can’t be checked.

Every benefit needs a number, a baseline, and an owner. “Improved efficiency” is a hope. “Reduce order processing from 34 days to 14, releasing 0.5 FTE — owned by the Operations Director” is something a finance director can test and somebody can be held to afterwards.

Distinguish cashable from non-cashable benefits, because your finance team certainly will:

• Cashable — money that actually stops leaving the organization: a contract not renewed, overtime not paid, waste not written off, a post not backfilled.
• Non-cashable — real but not bankable: time saved that doesn’t reduce headcount, reduced frustration, better information. Worth stating, but never present them as savings.

A business case claiming “£80,000 of efficiency savings” that turn out to be four hours a week spread across twenty people will be challenged, and rightly. Say what’s cashable, say what isn’t, and the whole document becomes more credible.

Don’t inflate. The temptation is to make the numbers as attractive as approval requires. The problem arrives later: benefits stated in a business case get tracked, and a project that delivered a third of what it promised damages both the sponsor and the next case they bring.

The Financial Appraisal

• Total cost of ownership, not purchase price. Licences, implementation, training, migration, support, hardware, internal staff time, and the annual cost once it’s running. The sticker price is usually a fraction of the three-year figure.
• Payback period — how long until the cumulative benefit covers the cost. The simplest number in the document and often the one that gets quoted.
• Return over a stated period, usually three or five years. Say which, and be consistent across every option.
• Phasing. Costs generally land early and benefits late, so a project that looks positive over three years may be uncomfortable in year one. Show the profile rather than the total alone.
• Be honest about year one. Savings rarely materialise during implementation, and a case assuming they do is the one that ends up explaining a shortfall.
• Sensitivity. Show what happens if benefits come in 30% below plan. A case that survives that test is far more persuasive than one that only works at full forecast.

Where funding comes from outside the organization, a business plan is the document lenders and investors expect; a business case is for internal approval.

Full Structure

1. Executive summary — the problem, the recommendation, the cost, the payback. One page, written last, and the only part some approvers will read.
2. Background and problem — what’s wrong, with evidence, and what it’s costing now.
3. Strategic fit — which organizational objective this supports. Links directly to your strategic plan.
4. Options appraisal — the table above.
5. Recommended option, with the reasoning.
6. Costs and benefits in detail, cashable and non-cashable separated.
7. Risks, with mitigations — see our risk register templates.
8. Implementation approach — phases, timescale, resources, and what you need from others.
9. Governance — who sponsors it, who delivers it, how progress is reported.
10. Appendices — quotes, detailed financials, supporting analysis.

Keeping It Alive

A business case isn’t a form you complete to unlock funding. In organizations that run projects well it’s a live document, revisited at each stage: are the costs still accurate, are the benefits still achievable, is the recommended option still the right one?

Three moments to revisit it: when costs change materially, at each stage gate or phase end, and when the problem itself shifts. If the answer at any of those points is that the case no longer holds, stopping is a legitimate outcome — and a considerably cheaper one than continuing because the money was already approved.

After delivery, check the benefits actually arrived. Almost nobody does this, which is exactly why business case numbers drift toward optimism over time. Comparing promised benefits to realised ones, once, changes how the next ten cases in your organization get written.

The One-Page Business Case

Not every decision justifies twenty pages. For smaller investments — a piece of equipment, a software subscription, a temporary hire — a single sheet covering the same ground is often more effective, because it actually gets read.

Fit it to one page: the problem in two sentences, the options in a short table with costs, the recommendation, the benefits with numbers, the main risk, and what you’re asking for. If you can’t compress it to a page, that itself is a signal the decision may warrant the longer document.

Many organizations use the one-pager as a first gate — approve it in principle, then commission the full case. That’s a sensible sequence, and it saves a great deal of work on ideas that were never going to be funded.

Frequently Asked Questions

What is a business case?

An internal document justifying an investment. It sets out the problem, appraises realistic options including doing nothing, costs and quantifies each, and recommends one — so that whoever holds the budget can make an informed decision.

What is the difference between a business case and a case study?

A business case is an internal document arguing for a decision, read by people who control spending. A case study is external marketing describing what you did for a customer, read by prospects. They share a word and nothing else.

What should a business case include?

An executive summary, the problem with evidence, strategic fit, an options appraisal including doing nothing, the recommended option, costs and benefits, risks, an implementation approach, governance, and supporting appendices.

Why include a “do nothing” option?

Because it’s the alternative every decision-maker has in mind, and almost nobody costs it. Quantifying what the current situation is costing — in waste, overtime, lost customers or risk — is frequently the strongest argument in the document.

What is the difference between cashable and non-cashable benefits?

Cashable benefits are money that stops leaving the organization — overtime not paid, a contract not renewed, waste avoided. Non-cashable benefits are real but not bankable, such as time saved that doesn’t reduce headcount. State both, and never present the second as savings.

What is a one-page business case?

A condensed version covering the problem, options, costs, benefits, main risk and the ask on a single sheet. It suits smaller decisions, and many organizations use it as a first gate before commissioning a full case.

Should a business case be updated after approval?

Yes. Revisit it when costs change materially, at each stage gate, and if the underlying problem shifts. After delivery, compare the benefits promised with those realised — it’s the step almost everyone skips, and it’s why business case numbers drift toward optimism.

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