How to Write a Business Case for Action
A business case for action is usually a written document suggesting a business strategy. The document can make a business case for acquiring a competitor, selling assets to reduce debt or hiring more employees for an anticipated increase in business. The business case for action is often a simple document, sometimes only a few pages long with supporting documents such as financial spreadsheets, charts and graphs. The business case is always supported by facts and is never based on emotion or personal interests.
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Instructions
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Evaluate the business issue using a SWOT analysis -- strengths, weaknesses, opportunities and threats. Create a table on paper or with a computer word processor. List bullet points under each SWOT heading as you take a 360-degree view of the issue. The SWOT analysis is widely used in business to make key decisions.
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Test the SWOT analysis for completeness and objectivity by asking a peer outside the organization for thoughts on your business issue using the SWOT model. This may not be an option if the project is confidential. However, gaining an outside view can prove invaluable.
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Gather detailed information to support the SWOT observations. For example, if small staff size is a perceived weakness, survey similar companies to determine their staff sizes. If a rival company has become a threat because of low pricing, review your company's financial reports to determine exactly how this affects your sales.
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Carefully review the SWOT analysis and the supporting data. If applicable, send notes to department heads and managers asking for clarification or explanation. Make a decision on a course of action based on the SWOT analysis, supporting document and feedback from others.
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Write the business case. Start with an executive summary reviewing the issue. The summary should describe the opportunity or problem, state why immediate action is necessary and include possible consequences if action is not taken. Conclude the summary by stating your recommendation for action. Complete the business case for action by elaborating on the issue and your recommendation throughout the document. Keep the paper short and to the point as you build your case. Attach supporting documents to back up your assumptions.
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Tips & Warnings
Make the business case highly detailed so that it is convincing. Do this by including a problem or opportunity statement in the overview. In the body of the report, include specific objectives and expected benefits. Acknowledge risks and options for addressing them, along with alternatives, costs and consideration of opposing arguments.
