What is a business case?

A business case is fundamentally a document that outlines the justification for a project or initiative. It serves as a comprehensive plan that presents the rationale behind a proposed project, detailing the benefits, costs, risks, and alternatives involved. The purpose of a business case is to enable stakeholders to understand the value of the project and make informed decisions regarding its approval and funding.

By creating a business case, organizations are able to articulate why a project is needed, how it aligns with strategic goals, and what impact it is expected to have. It typically includes information on expected outcomes, financial implications, resource requirements, and timelines, allowing decision-makers to weigh the proposal against competing projects and priorities.

In contrast, a report on financial performance focuses on the analysis of past financial results rather than justifying new initiatives. A proposal for cost-cutting measures has a narrower focus on reducing expenses rather than addressing the overall value of new projects. An analysis of competitors is centered around market positioning and competition rather than providing a justification for a specific project or initiative. Each of these alternatives lacks the comprehensive evaluative framework that a business case provides to support decision-making in the context of new projects.