Based on contributions by DaanKlugt.
A business case explains why a project is needed, what it will cost, and what it will bring. Write one whenever you need to justify a project to a client, manager, or stakeholder — including for an SMR minor project, where it’s often a required deliverable. When writing it, put yourself in the client’s shoes: what do they want to gain, and which numbers and conclusions matter most to them?
What you need
- A clear problem or opportunity statement for your project.
- Rough cost estimates for at least two alternative solutions.
- Any known risks or constraints from your client or stakeholders.
Steps
1. Define the problem or opportunity
State what the problem is, or what opportunity you want to take, and explain why it matters.
Example: “Our system to track inventory is slow and inaccurate. We often run out of stock or have too much, which wastes time and money.”
2. State the objectives
Write down what you want to achieve. Objectives should be clear and measurable.
Example: “We want to set up a system that manages inventory better and reduces mistakes by 30% in the first year.”
3. Identify the alternatives
List at least two options, including the one you’re not choosing, with the pros and cons of each.
Example:
- Option 1: Manual tracking
- Good: cheap.
- Bad: time-consuming, error-prone.
- Option 2: Automated system (chosen solution)
- Good: saves time, more accurate, scales as the company grows.
- Bad: higher upfront cost, requires training.
4. Analyze the costs and benefits
Estimate what the project will cost and what it will bring, in money and in other benefits (time saved, quality, customer satisfaction).
Example:
- Costs:
- Software: $50,000
- Training: $10,000 per year
- Benefits:
- Saves $75,000 per year from fewer mistakes
- Better customer satisfaction
5. Assess the risks
List the risks involved and how you plan to reduce them.
Example:
- Risk: employees resist the change.
- Mitigation: provide good training and explain why the change is needed.
6. Recommend a solution
Pick the option you consider best and explain why, based on the costs, benefits, and risks above.
Example: “We recommend the automated system because it benefits the company more in the long term, even though it costs more upfront.”
7. Write the conclusion
Summarize the case and restate why it matters for the organization.
Example: “The new system will save time, reduce costs, and improve customer satisfaction. It is a good choice for the future.”
Common mistakes
- Skipping the alternatives. A business case with only one option (the one you want) is much less convincing than one that shows you compared choices.
- Only counting money. Non-financial benefits (customer satisfaction, safety, scalability) matter too and should be stated explicitly, even when they’re hard to put a number on.
- No risk section. Decision-makers want to see that you’ve thought about what could go wrong, not just the upside.
Rewritten and consolidated (Sept 2026) from the original student how-to’s: How to write a businesscase.