business plan versus business case

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• The beginner’s guide to writing an effe ...

The beginner’s guide to writing an effective business case

Nearly every project needs to be approved—whether that means getting the simple go-ahead from your team or gaining the support of an executive stakeholder. You may be familiar with using a project plan or project charter to propose a new initiative and get the green light for a project. But if your proposed project represents a significant business investment, you may need to build a business case.

If you’ve never written a business case, we’re here to help. With a few resources and a little planning, you can write a business case that will help you get the resources and support you need to manage a successful project.

What is a business case?

A business case is a document that explains the value or benefits your company will gain if you pursue a significant business investment or initiative. This initiative can be anything from the messaging for a new product or feature launch, a proposal to increase spend on a current initiative, or a significant investment with a new agency or contractor—to name a few. A compelling business case will outline the expected benefits of this significant investment decision. Key stakeholders will use the business case you provide to determine whether or not to move forward with an initiative.

If you’ve never created a business case, it may sound similar to other early project planning documentation. Here’s how it stacks up:

The difference between a business case and business plan

A  business case  is a proposal for a new strategy or large initiative. It should outline the business needs and benefits your company will receive from pursuing this opportunity.

A  business plan , on the other hand, is an outline for a totally new business. Typically, you’d draft a business plan to map out your business strategy, your mission and vision statements, and how you’re planning on getting there. There may be a case where you create a business plan for an already-existing business, but you’d only do so if you’re trying to take your business in a significantly new direction.

Business case vs. executive summary

Business case vs. project charter.

If you need to create an elevator pitch for your project but you don’t quite need the full business case treatment, you might need a project charter. Much like a business case, a project charter outlines key details of an initiative. Specifically, a project charter will cover three main elements of your project: project objectives, project scope, and key project stakeholders. Your management team will then use the project charter to approve further project development.

Do you need a business case?

Not every project needs a business case—or even a project charter. Plan to build a business case only for initiatives or investments that will require significant business resources. If you’re working on a smaller initiative, consider creating a project charter to pitch your project idea to relevant stakeholders.

Even if you don’t need to pitch your project to any stakeholders, you should be ready to answer basic questions about your proposed project, like:

What is this project’s purpose?

Why are we working on this project?

How does this project connect to organizational goals and objectives?

Which metrics will we use to measure the success of the project ?

Who is working on this project?

When is this project going to be completed?

5 steps for creating and pitching a business case

Your business case shouldn’t just include key facts and figures—it should also tell a story of why pursuing a particular investment or initiative is a good idea for your business. When in doubt, avoid jargon and be brief—but always focus on communicating the value of the project. If this is your first time creating a business case, don’t worry. Follow these five steps to create a solid one.

1. Gather input

You don’t have to write a business case on your own. Instead, make sure appropriate team members and stakeholders are contributing to the relevant sections. For example, the IT team should be involved in any tooling and timeline decisions, while the finance team should review any budget and risk management sections. If you’re creating a business case to propose a new initiative, product line, or customer persona, make sure you also consult subject matter experts.

2. Plan to write your business case out of order

Some of the first things that appear in your business case—like your executive summary—should actually be drafted last, when you have all of the resources and information to make an informed suggestion. Your executive summary will present all of your findings and make a recommendation for the business based on a variety of factors. By gathering all of those details first—like project purpose, financial information, and project risk—you can ensure your executive summary has all of the relevant information.

3. Build your business case incrementally

A business case describes a significant investment for your company. Similarly, simply writing a business case is a significant investment of your time. Not every initiative is right for your business—so make sure you’re checking your work with stakeholders as you go. You don’t want to sink hours and weeks into this document only for it to be rejected by executive stakeholders right off the bat.

Consider doing a “soft launch” with an outline of your business case to your project sponsor or an executive stakeholder you have a good relationship with to confirm this initiative is something you should pursue. Then, as you build the different sections of your business case, check back in with your key stakeholders to confirm there are no deal-breakers.

4. Refine the document

As you create sections of your business case, you may need to go back and refine other sections. For example, once you’ve finished doing a cost-benefit analysis with your financial team, make sure you update any budget-related project risks.

Before presenting your business case, do a final read through with key stakeholders to look for any sections that can be further refined. At this stage, you’ll also want to write the executive summary that goes at the top of the document. Depending on the length of your business case, your executive summary should be one to two pages long.

5. Present the business case

The final step is to actually present your business case. Start with a quick elevator pitch that answers the what, why, and how of your proposal. Think of this presentation as your chance to explain the current business need, how your proposal addresses the need, and what the business benefits are. Make sure to address any risks or concerns you think your audience would have.

Don’t go through your business case page by page. Instead, share the document with stakeholders before the presentation so they have a chance to read through it ahead of time. Then, after your presentation, share the document again so stakeholders can dig into details.

A business case checklist

Start with the why.

The first section of the business case is your chance to make a compelling argument about the new project. Make sure you draft an argument that appeals to your audience’s interests and needs. Despite being the first section in your business case, this should be the last section you write. In addition to including the  traditional elements of an executive summary , make sure you answer:

What business problem is your project solving?  This is your chance to explain why your project is important and why executive stakeholders should consider pursuing this opportunity.

What is your business objective ?  What happens at the end of a successful project? How will you measure success—and what does a successful project mean for your business?

How does this business case fit into your overall company business strategy plan?  Make sure your proposed business case is connected to important  company goals . The initiative proposed in your business case should move the needle towards your company's  vision statement .

Outline financials and the return on investment

At this point in your business case, you should outline the project finance fundamentals. Don’t expect to create this section on your own—you should draft this in partnership with your company’s finance team. In particular, this section should answer:

How much will this project cost?  Even if the initiative is completely new to your company, do some research to estimate the project costs.

What does each individual component of the project cost?  In addition to estimating the total overall cost, break down the different project costs. For example, you might have project costs for new tools and resources, competitive intelligence resourcing, agency costs, etc.

What is the expected return on investment (ROI)?  You’ve talked about the costs—now talk about how your company will benefit from this initiative. Make sure to explain how you calculated the ROI, too.

How will this project impact cash flow?  Cash flow is the amount of money being transferred into and out of your business. Significant investments are going to cost a lot of money, so they’ll negatively impact cash flow—but you should also expect a high ROI, which will positively impact cash flow.

What is the sensitivity analysis?  Sensitivity analysis is a summary of how uncertain your numbers are. There will be a variety of variables that impact your business case. Make sure to explain what those variables are, and how that could impact your projections.

Preview project details

Your business case is proposing a new initiative. In addition to the financial risks, take some time to preview project details. For example, your business case should include:

Your  project objectives  and  key project deliverables .  What will happen at the end of the project? What are you expecting to create or deliver once the project is over?

Your  project plan .  A project plan is a blueprint of the key elements your team needs to accomplish in order to successfully achieve your project goals.

The  project scope .  What are the boundaries of your project? What exact goals, deliverables, and deadlines will you be working towards?

A list of relevant  project stakeholders .  Who are the important project stakeholders and key decision makers for this work? This can include the members of the project team that would be working on this initiative, executive stakeholders who would sponsor the project, and any external stakeholders who might be involved.

A general  project roadmap  in a Gantt-chart like view.  At this stage in the process, you don’t need to provide a detailed project timeline, but you should outline a general sense of when each project stage will happen in relation to the others. To do this, create a project roadmap in  Gantt-chart like software . Make sure to include any important  project milestones  in your roadmap as well.

Any important project dependencies.  Is there anything that would get in the way of this project getting started? Does this work rely on any other work that’s currently in flight?

Discuss project risks

Once you’ve outlined the financial impact and important project details, make sure you include any potential project risks. If you haven’t already, create a  project risk management plan  for your business case. Project risk management isn’t the process of eliminating risk—instead, it’s about identifying, analyzing, and proactively responding to any potential project risks. Clearly defining each project risk and how that risk might impact your project can best equip you and the project team to manage and avoid those risks.

In the risk section of your business case, include:

A risk analysis of any potential project risks.  What is the risk? How likely is it to happen? What is the priority level of this risk?

What, if any, assumptions you are making.  In project risk management, assumptions are anything you think will be true about the project, without those details being guaranteed facts. Basing project decisions around an assumption can open your project up to risk. Make sure you ratify every project assumption to avoid jeopardizing project success.

Any comparable alternatives in the market.  If you’re writing a business case to pitch a new product or angle in the market, evaluate anything that already exists. Could the alternative impact your financial assessment or project success?

Develop an action plan

In the final section of your business case, outline how you will turn this business case into an actionable project. This section should answer questions like:

How will decisions be made?  Who is responsible for the project? Who is the project sponsor? If you haven’t already, consider creating a  RACI chart  to outline project responsibilities.

How will progress be measured and reported?  Not every project stakeholder needs to be notified of every project change. Outline key parts of your project communication plan , as well as how you’ll communicate  project status updates .

What is the next course of action?  If the management team ratifies this business case, what next steps will you take to put this into action?

Bring your business case to life

You’ve built a solid business case and it’s been ratified—congratulations! The next step is to bring your business case to life. It can be intimidating to  initiate large-scale change , and implementing your business case is no exception.

If you haven’t already, make sure you have a  project management tool  in place to manage and organize your new initiative. With a central source of truth to track who’s doing what by when, share status updates, and keep project stakeholders in the loop, you can turn a great business case into a successful project.

Related resources

Cost control: How to monitor project spending to increase profitability

How to use a feasibility study in project management

How to track utilization rate and drive team profitability

How to accomplish big things with long-term goals

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What is a business case and how to write one (with template)

In this guide, we’ll define what a business case is, help you determine when you need one (and when you don’t), and walk you through a four-step process for creating a business case.

We’ll also outline what you should include in a business case and provide a free template you can use when writing a business case to secure stakeholder support for your next big project.

What is a business case?

Every project needs the support and approval of key stakeholders before it can launch. Many project and product leaders use a project plan or charter to communicate pertinent details to those involved.

Similarly, for large initiatives that require significant resources, potential investors are presented a business case outlining the costs, benefits, business need, and risks involved.

A business case is a document that defines the value it will deliver if executed and benefits the company over the costs involved. With a thorough understanding of the components to be included and necessary resources, it is possible to create a compelling business plan.

Why do you need a business case?

If a project is green-lit without a business case, it can lead to serious issues down the road. A project without clearly articulated expectations and goals can go on endlessly and aimlessly. This leads to wasted resources, money, and time with no outcome in the end.

A business case enables you to:

Align with strategy

Gain stakeholder support, prioritize projects, track outcomes.

A business case helps to showcase how a project is aligned with the overall strategy and goals of the organization. It clearly defines the problem or opportunity that the project is intended to address.

A business case also enables you to determine expected benefits and outcomes before you start a project or initiatives, thus projecting how the project contribute to achieving the organization’s goals.

A business case is a useful tool to provide a clear rationale for pursuing the project. A thorough business case can help key stakeholders decide whether to invest in the project by evaluating the feasibility, costs, risks and potential returns. A business case presentation gives stakeholders an opportunity to ask questions and address concerns.

A business case defines the value that the project is expected to deliver. Based on the value delivered by each project, business and product leaders can prioritize projects for budget cuts or further investments. Proper prioritization helps the organization achieve the goals aligned with the business strategy.

A business case provides a roadmap for the project, including the goals, milestones, and key deliverables. Once the project starts, a roadmap helps you keep track of your progress toward project goals, including what has already been achieved and what will be delivered at the end. Providing a timely update on the project to the key stakeholders is critical for setting expectations.

When you don’t need a business case

A business case is certainly helpful for large initiatives requiring support from key stakeholders, but there are some situations where creating a business case might be a waste of time.

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For instance, small or low-risk projects that would not impact the organization in any negative way do not require a business case because it would not make sense to spend that much effort on a low-scale project.

A business case might also be considered superfluous for a project that is already ongoing. It can be tempting to create a business case post-launch for the sole purpose of documenting decisions made and milestones achieved. However, it’s typically not worth the time investment because such a business case rarely adds any value or insights.

Before you take on the task of creating a business case, it’s important to carefully consider the need and to ensure that doing so would produce valuable insights to the decision-making process. It is in the best interest of everyone to forgo the business case creation process in situations where it does not provide any additional value and to focus instead on other activities that directly impact the project.

Business case vs. business plan

A business plan is not the same thing as a business case.

A business case outlines a proposed project and its potential benefits to convince key stakeholders to invest. It typically includes analysis of costs, value to be delivered, and associated risks, along with ROI.

A business plan, on the other hand, outlines the overall strategy and goals for an entire organization. It defines the what, why, and who for the business, covering the products and services offered, target segment, marketing and sales strategy, and operational and financial projections over a period of time. A business plan is designed to help potential outside investors make informed decisions about whether the business is worth investing in.

The table below breaks down the differences between a business plan and a business case:

How to write a business case

Before we dive into steps to create a business case, let’s review what we’ve learned so far:

• A business case is a document created during the initiation of the project but is referred throughout the project lifecycle
• A strong business case helps in building confidence and gaining support of key stakeholders
• A business case also helps you track a project’s progress over time
• A weak business case that is not aligned with strategy can lead to project failure

To write a business case, follow this four-step process:

• Identify the business need
• Explore all possible solutions
• Propose the best approach
• Outline the implementation process

1. Identify the business need

Projects are initiated to solve a business need and achieve a value or a benefit aligned to the goals of the organization.

The first step to create a business case is to identify the business problem and define it clearly. Market research and any available data to justify the business need is helpful to include in the business case.

2. Explore all possible solutions

Once the business problem has been identified, the next step is to explore all the possible solutions for that problem. You can do this systematically by listing out all the possible solutions along with other parameters, such as:

• The benefits of each approach
• Feasibility
• Time period
• Assumptions

A detailed analysis of each option predicting the cash flows, ROI, and value delivered would help key stakeholders understand each solution and cross-question the assumptions, feasibility, and other parameters.

3. Propose the best approach

Set a criteria to showcase how you evaluate each solution and then come up with the best out of the list.

To set the criteria, identify attributes that closely align to the organization’s strategy. For example, if the organization’s goal is to increase revenue in the next year, then an important criterion might be the solution with maximum revenue projection.

List the top three-to-five attributes to evaluate alternative solutions against and rank each solution 1–5. Once you rank all of them, total the ranks for all the attributes to indicate a clear winner.

Document this process and present it to stakeholders to ensure they are on the same page with the selection process of the best solution.

4. Outline the implementation process

Once the best solution has been proposed, the next step is to think about how it will be implemented.

When it comes to planning the implementation process, you need to define:

• Resources needed
• Timeline from initiation till the end
• Risks and how to mitigate
• Milestones and when they will be achieved
• Total cost involved and how much will be used by when

These four steps, when captured in detail, can help you win the support of key stakeholders and kick off your project with a solid foundation and a clear objective.

What is included in a business case?

Now that we’ve walked through the steps of how to create a business case, let us also take a look at what to include in the business case document to support the four steps outlined above.

Here’s what to include in a business case:

• Executive summary — A quick overview of the project and the topics being covered in the business case
• Business problem — A description of the business problem and why it is important to solve it
• Possible solutions — A list of possible solutions and how the best possible solution is identified
• Project definition — Define the business objectives to be achieved along with general information about the project
• Project plan — Create the project plan with key elements your team needs to accomplish to successfully achieve your project goals
• Project scope — Clearly define what would be covered as a part of the project and what is out of scope to avoid any confusion
• Project budget — Estimated cost involved to complete the project needs to be captured with a detailed breakdown
• Project roadmap — Projection of the estimated timeline for each stage of the project to be done. Be sure to include any important project milestones
• Project financials — Financial metrics depicting the cash flow, such as NPV, IRR, ROI, and payback period to help stakeholders understand the financial value the project can bring in over a period of time
• Risk assessment — Capture the risks involved and the steps planned to mitigate the risks
• Project stakeholders — A list of key stakeholders involved can help anyone looking at the document to reach out to them when needed. The list can include the project team, sponsoring executives, and any external stakeholders who might be involved

Business case template

To help you get started writing a business case for your next big project or initiative, we created a business case template that you can download and customize for free.

You can access this simple business case template by clicking here (be sure to select File > Make a copy from the main menu bar before editing the template).

Preparing the business case is only half the journey of initiating a project. The next step is to present the business plan to key stakeholders , answer their queries, and compel them to support the project.

Lastly, be sure to follow up with the attendees to make sure all the stakeholders are on the same page and aligned to support the project.

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Business Plan vs Business Case: What is the Difference

Businesses use a variety of documents to plan and track their progress. Two common types of business documents are business plans and business cases. Both document the current state of the business, outline future goals and detail how those goals will be met. However, there is a key difference between these two types of documents: a business case focuses on strategy while a business plan focuses on investment and viability.

A business plan is a high-level overview of the entire company. It includes the company's mission statement, an analysis of the competitive landscape, market research, target audience definitions, objectives and strategies for achieving them as well as important financial projections and SWOT analysis. 

A business plan is often focused on gaining investment or deciding if a business will be viable going forward

What is a Business Case?

On the other hand, a business case is primarily used as an internal document to justify an action or strategy within an existing business.

A business case will often include a cost-benefit analysis which weighs the pros and cons of taking a particular course of action. This type of analysis is helpful in decision-making because it forces businesses to consider all potential outcomes before committing to anything. 

Project vs Overall Business Strategy

Often, the best way of deciding whether a business plan or a business case is needed is by considering the aims. 

If you or your business are looking at a specific project or strategy, a business case may be more suited to your needs. For example

• A new product launch
• An expansion into a new market
• The introduction of a new process or technology

On the other hand, if you are starting up a business or want to take a more holistic view of your company's direction, then a business plan may be what you need.

Scope & Aims of a Business Case

A business case cannot be considered a business plan for a particular project or strategy. A business plan is a high-level document that looks at the entire business and not a specific project or goal.

A business case is a more specific document that looks at a particular project or strategy. It includes a cost-benefit analysis which weighs the pros and cons of taking a particular course of action. This type of analysis is helpful in decision-making because it forces businesses to consider all potential outcomes before committing to anything.

The Key Differences: Business Plan vs Business Case

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How to Write a Business Case + Templates to Use

Written by: Zain Zia

You've got a brilliant idea that could revolutionize your company, but how do you convince stakeholders to give it the green light? The answer: a compelling business case.

Many projects fail to gain traction because of inadequate communication, especially with stakeholders. A well-written business case is your key to securing the support and resources needed to see your project succeed.

If you’re writing a business case for the first time, this article is for you. We’ll show you what to include in a business case and how to write one from scratch. We’ve also included 10 business case templates to get you started quickly.

Table of Contents

What is a business case, key elements of a business case, 10 business case templates, how to write a business case, business case faqs.

• A business case is a project management document that highlights the objectives, risks, benefits and costs of pursuing a project.
• The key elements of a business case include project background, goals, problem statement, analysis of options, preferred solution, cost-benefit analysis, implementation plan and risk assessment.
• Writing a business case involves gathering input from stakeholders, using a template, writing project details, presenting your analysis, creating an action plan, writing an executive summary, and reviewing the information for clarity and accuracy.
• Visme can help you create engaging and professional business cases as well as other documents, presentations and infographics for enterprise, small business or individual use. Access templates, built-in design assets, AI tools, branding, collaboration and more to create content that impresses and leaves a mark.

A business case is a document that explains why a project or task is worth pursuing. It's written at the beginning of a project to help stakeholders—like managers or investors—understand what the project is about, what benefits it will bring and how much it will cost.

A good business case is clear, to the point and flexible enough to accommodate any potential changes or revisions. When written well, it can convince decision-makers to approve the project and give it the resources it needs to succeed, or revise or defer it if necessary.

Business Case vs Project Charter

It’s easy to confuse a business case with a project charter. After all, they’re both created at the initial stages of the project lifecycle . However, they serve very different purposes.

A business case is developed during the project initiation phase to justify the need for the project. It focuses on the "why" of the project, outlining the benefits, costs and risks.

The business case helps decision-makers determine whether the project aligns with the organization's goals and if it's worth investing in.

On the other hand, a project charter is created after the project has been approved. This document defines the project’s scope, objectives, deliverables, and other requirements and acts as a reference point for the project team and stakeholders as they work on the project.

Business Case vs Business Plan

A business case is an internal document used within an organization to justify a specific project or investment. It’s created for stakeholders and decision-makers and focuses on the costs, benefits and risks of the proposed project.

In contrast, a business plan outlines the overall strategy for a new or existing business. It's often used to secure funding from external investors or partners by covering aspects like target market, competitive analysis , offerings, financial projections and operational plans.

The structure of your business case will vary depending on your project type and industry. However, most successful business cases often cover the following sections:

• Background: Provide context for the project, including the current situation, market conditions and organizational objectives.
• Project goals: Clearly define SMART goals and objectives for your project. What exactly do you aim to achieve?
• Problem statement: Identify the problem or opportunity the project aims to address, including its impact on the organization and stakeholders.
• Analysis of options: Evaluate different solutions or approaches to address the problem or opportunity, considering factors like feasibility, cost, benefits and risks.
• Preferred solution: Present the recommended solution. Explain why it’s the best choice and how it aligns with project goals as well as strategic business goals.
• Cost-benefit analysis: Assess the project's financial impact, including costs, benefits, return on investment (ROI), and break-even point.
• Implementation plan: Outline the key activities, milestones, timeline, resources and responsibilities required to successfully execute the project.
• Risk assessment: Identify potential risks associated with the project and develop strategies to mitigate or manage them.

Writing a business case is a tough job. If you don’t want to spend time worrying about design, layout and sections, simply customize the premade business case templates below to get started on the right foot.

1. General Business Case Presentation

This vibrant business case presentation template is an excellent pick for anyone looking to provide comprehensive project information to stakeholders.

It covers all key aspects of the project, from defining the problem and solution to implementation details like timeline, budget, cost-benefit analysis and stakeholder engagement.

The striking design features a bold, modern color palette of teal, orange and yellow, with clean lines and 3D isometric graphics that give it a fresh, contemporary look. It also features multiple data visualization tools like charts and diagrams to make complex information easy to understand.

Personalize this general business case template by incorporating your branding elements into your presentation, including colors, fonts and logo.

Don’t want to upload your design assets manually? Use the incredible power of Visme’s brand design tool —just enter your website URL and let AI automatically pull all your design elements.

2. Financial Business Case Template

This financial business case presentation template features a stunning, modern design that’s guaranteed to grab your stakeholder's attention.

It’s brought to life with eye-catching colors, creative vector icons, high-res images, subtle animations and multiple professionally designed pages, including success criteria, project plan and financial information.

Design your business case presentation quickly and ensure all information is correct by collaborating with team members . Tag collaborators, assign/resolve tasks and share comments and feedback—all in one place.

3. Management Business Case Template

Proposing a merger between companies? Use this management business case template to get started and impress your key stakeholders.

It features a clean, professional visual layout, high-resolution imagery, data widgets and dedicated pages highlighting your merger goals, timeline, communication plan, cost-benefit analysis and SWOT analysis.

4. Economic Business Case Template

This economic business case template is a guaranteed head-turner thanks to its beautiful colors, animated icons, top-notch icons and images and overall professional visual layout.

The project timeline, budget and SWOT analysis pages are particularly eye-catching as they allow users to go in-depth on each section.

Facing difficulty writing headings or describing a specific element of your business case? Use Visme’s AI writer to craft professional copy. You can also create high-quality images with the AI image generator . Simply describe what you're looking for and let AI do all the heavy lifting for you.

5. Product Business Case

This sleek and streamlined one-page business case template captures the essence of a company’s proposed in-app booking feature.

The colorful sticky note layout neatly breaks down the problem, solution, scope and key tasks to implement this exciting enhancement. And although a one-pager, the template successfully explains the problem, the proposed solution and the financial aspect of the project.

Breathe life into your business case template by adding travel-themed visuals or icons. Or convert financial information into interactive graphs and charts. Make as many changes as you want until you’re happy with what you have.

6. Business Case Presentation

Looking for a unique business case example to bring attention to your proposed project and impress key stakeholders? Get started with this interactive template today.

It features stunning colors, high-quality icons, animations, relevant images, professional fonts and plenty of whitespaces. All slides are professionally designed to help you touch on every important element of the business case.

Make the template your own by uploading your branding elements, including fonts, logos, colors and images. Or use our free graphic asset library to enhance the visual appeal of your business case with icons, shapes, illustrations and stock photos.

7. Acquisition Business Case Template

This one-pager business case whiteboard template is a great pick for anyone looking to quickly highlight the proposed project's vision, objectives, risks, costs and benefits in front of key stakeholders.

It uses multiple bright-colored blocks to clearly separate each section, and the structure flows logically from left to right, making it easy to follow. It also features a chalkboard illustration and a 3D character showcasing that a project is in the works.

Win over your stakeholders by adding animation and interactivity to your business case template—create clickable menus, embed interactive content, add pop-ups, hover effects and much more.

8. Business Case for Competition Template

This business case whiteboard template provides a structured framework for brainstorming, analyzing and addressing supply chain issues related to perishable goods.

The template is divided into various sections like problem, scope, KPIs, resources, tasks and risks involved in going ahead with the project. This makes it an excellent tool for discussing project essentials during stakeholder meetings and strategy sessions.

Once you've finalized the design and content of your business case, share and publish it with your managers and other key stakeholders online. This will store all the animations you've added to the project, including the flipbook effect . You can also measure your project analytics , such as total views, unique visits and average time spent.

9. Business Case for Equipment Purchase

This whiteboard business case template provides a concise overview of automating the assembly process at an automobile company. It outlines the key problem of manual assembly slowing production, the proposed solution, and the risks and costs involved in undertaking the project.

The minimalist design features a clean white background with colorful high-quality vector icons to distinguish each section. And the typography is modern and legible.

Spice up this template by adding an eye-catching cover image related to automotive manufacturing at the top. Visme's library of professional stock photos and videos and intuitive editing tools make it simple to create a polished, visually engaging header to draw in your audience.

10. Business Case for Investment

This strategic investment business case template features a tech-inspired color palette of navy blue and green and multiple vector icons to bring attention to each section of the document.

The hexagonal text boxes efficiently organize the key components of the business case, including objectives, strengths, weaknesses, resources, costs, opportunities and threats. It also has ample white space that gives the document a polished, professional look.

Use Visme’s dynamic fields to create placeholders for customizable information within your business case template. Quickly personalize each field for specific manager, stakeholder, or project without manually editing each detail.

Writing a good business case requires careful research and attention to detail. In this section, we’ll look at 7 steps to writing a convincing business case that helps you get the support and funding you need for your proposed project.

1. Gather input from stakeholders

A good business case is not developed in isolation. In fact, involving stakeholders from the very beginning can increase the chances of your project getting approved.

Discuss your project idea with key decision-makers to understand their needs, budgetary constraints and strategic objectives. This will help you formulate a business case that aligns with the organization's goals and is more likely to gain support.

Additionally, consult subject matter experts and team members from various departments to gather their insights and perspectives. This collaborative approach not only strengthens your business case but also instills a sense of ownership and buy-in among your colleagues.

Pro Tip: Visme’s online whiteboard tool can help you with brainstorming and strategizing with your team. Access ready-made templates, collaborate in real-time, connect with your favorite tools and share or download your whiteboards in multiple ways.

Talking to stakeholders also helps you identify potential challenges and opportunities you may have otherwise overlooked. Collect, organize and analyze all of your research before you get into the specifics of the project.

2. Start with a template

Before you start writing the business case, decide how you’re going to do it. What software are you going to use? What about the design aspects?

The smart thing to do is to start with a premade business case template. Using a template means you don’t have to worry about layout, fonts, colors and other design-related issues. All you need to do is add your content and you’re good to go.

You may also want to customize the business case design so it aligns with your company’s branding. This will make it look more professional and increase its chances of getting approved.

Do all of this and more using Visme. Our professional document maker offers several ready-made business case templates you can choose from.

Customize every aspect easily using the drag-and-drop editor, from fonts to colors to images to borders and more. Apply your branding with a few clicks. Upload any photos or simply use the built-in graphic assets.

You can also add links, animations and other interactive elements to your business case, which is especially useful if you plan on sharing it online with stakeholders. For example, you could link out to an external website where stakeholders can find more information about the problem your project aims to solve.

Finally, download and share your business case once you’re done. Visme’s business case templates can be published online, saved in multiple formats and even shared via an embed or QR code.

3. Write the project details

Once you've gathered insights and analyzed the data, it’s time to define your project. This section is the heart of your business case, where you'll provide a detailed description of the project's goals, the problem it aims to solve, the proposed solution and any alternatives.

Clearly articulate the benefits of your project, both tangible and intangible. Highlight how the project will improve efficiency, reduce costs, increase revenue or enhance customer satisfaction. Additionally, provide a realistic assessment of the costs involved, including any upfront investments, ongoing expenses and potential risks.

When discussing the problem and solution, use data and examples to support your arguments. Provide evidence from industry research, case studies or internal metrics to demonstrate the significance of the issue and the feasibility of your proposed approach.

By presenting a well-researched and data-driven project, you'll establish credibility, look professional and be more likely to get stakeholder support.

4. Present your analysis

To build a compelling business case, you need to go beyond stating facts and figures. Instead, analyze the data you've gathered and present a clear, evidence-based rationale for your recommended solution.

Here’s how to present a business case analysis:

• Compare different alternatives: Outline the pros and cons of each approach, and explain how and why you arrived at your chosen solution. Use data visualizations like charts and graphs to make your analysis more engaging and easier to understand.
• Conduct a cost-benefit analysis: When discussing costs, don't simply provide a list of expenses. Instead, demonstrate the long-term value of your project. Show how the benefits outweigh the costs and how the investment will contribute to the bottom line.

• Look at the big picture: To further strengthen your case, align your project's goals with the overall strategic objectives of the business. Explain how your initiative supports the company's vision and helps achieve its long-term targets.
• Highlight potential risks : Identify risks associated with your project and present a plan for mitigating them. Acknowledging and proactively addressing concerns builds confidence in your ability to manage the project effectively.

Don’t forget to present your analysis and financials visually using charts and graphs. This makes your data look more engaging and easier to understand. Visme offers 20+ types of data visualizations to help you bring boring numbers to life.

5. Create an action plan

A solid business case should include a detailed implementation plan that outlines how you intend to execute the project. This section should address key questions like:

• What resources will be required, including personnel, equipment and budget?
• Who will lead the project, and what roles and responsibilities will team members have?
• What is the estimated timeline or schedule for the project?
• How will you communicate progress, changes or status updates to stakeholders?
• What are the next steps following project approval?

Providing a clear action plan shows you’re prepared and committed to seeing the project succeed. It also helps stakeholders understand where and how you’ll utilize the resources you need, reducing uncertainty and speeding up the decision-making process.

6. Write an executive summary

Although the executive summary should be included at the beginning of your business case, it's best to write it at the end. That’s because you need to distill the key points from each section of your document into a concise and compelling overview.

The executive summary should be a brief, high-level synopsis of your business case, typically no more than one or two pages. It should capture the essence of your project, including the problem, proposed solution, benefits, costs and expected outcomes.

Use clear, jargon-free language and focus on the most critical aspects of your project that will resonate with your audience. Keep in mind the executive summary may be the only section some stakeholders read, so make sure to leave a strong impression.

7. Review and refine

Before presenting your business case, take the time to revisit your document. Assess your business case for clarity, coherence and persuasiveness. Ensure your arguments are well-supported, your data is accurate and your language is clear and concise.

Consider using visual aids, such as diagrams or infographics, to make your case more engaging and easier to understand. Here’s how to do that in Visme:

Finally, collaborate with your team and, if possible, seek feedback from stakeholders to identify areas for improvement. Be open to constructive criticism and use it to refine your arguments, address potential objections and improve the overall quality of your document.

What Is Another Name for a Business Case?

A business case may also be referred to as a project proposal , investment proposal or feasibility study.

What Is Typically Included in a Business Case?

A business case typically includes an executive summary, project background, problem statement, proposed solution, cost-benefit analysis, implementation plan and risk assessment.

What Is a Weak Business Case?

A weak business case is one that fails to identify the project objectives and the financial value it brings to the business. It lacks consistency, contains insufficient research and does not align with organizational goals.

What Is the Difference Between a Strategic Case and a Business Case?

A strategic case focuses on how a project aligns with an organization's long-term goals and vision. On the other hand, a business case concentrates on the financial viability, risks and benefits of a project within those strategic goals.

Easily Create Beautiful & Branded Content with Visme

You’re ready to write a business case and turn your project idea into reality. Remember to follow the steps above to create a compelling document that impresses stakeholders and ticks all the boxes of a good business case.

Use Visme to create engaging business cases, business plans, project charters and other professional documents. Our all-in-one content creation tool makes it easy to build all kinds of branded content, from presentations to documents to infographics to videos.

Take your enterprise content creation efforts to the next level with Visme. With features like team collaboration, AI tools, custom branding, asset management, built-in analytics, animation and interactivity support and data visualization, Visme is the ideal platform for your company’s internal and external content creation needs.

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How to write a thorough and convincing project business case

When starting a new project, you know what that project seeks to accomplish. You’re in sync with business needs and, after brainstorming with your team, have a possible solution. But before writing a project plan and getting to work, you need to justify this work to your team, manager, and external stakeholders.

That’s why project managers create business cases: well-thought-out and concise documents that justify the time, money, and other resources necessary to complete an upcoming initiative.

What’s a business case?

A project business case is a document that explains why an initiative is worthwhile, thanks to projected benefits, and convinces stakeholders to invest their time and finances in the endeavor.

Creating a business case is part of the project planning process, as you’ll need to determine product and service details to effectively persuade your audience to jump on board.

Why do you need a business case?

A business case proves that your project benefits the organization, aligns with company core values, and uses resources wisely. It’s a comprehensive yet concise project definition stressing that this initiative is for the company's betterment.

To prove this, you must expand your reasoning beyond “We want to do this work” to include costs and possible disadvantages. Your case document should address the following questions:

• Opportunities: What problem does this initiative solve, or what opportunity does it present to the business?
• Benefits: How will this benefit the company, aside from direct opportunities?
• Risk: Are there any risks involved?
• Technical recommendations: How will this affect current business technology?
• Timeline: When do we expect to complete this project?
• Operational impact: How will this impact the business regarding resources and labor?
• Capacity: Do we have the available resources to complete this project?

Answering these questions gives decision-makers all the data points they need to decide on approval.

A business case versus a business plan

The difference between a business case and plan is scope: The former proposes a new strategy or project based on business needs, and the latter details a strategy for starting a new enterprise.

A business plan would include a complete start-up strategy, mission statements, and operational procedures with the intent to build a company from the ground up. Entrepreneurs use this document to plan their business or showcase it to potential investors, hoping to gain financing.

The key elements of a business case

While you can make your business case as thorough or concise as you want, here are some elements most documents include:

• An executive summary that’s brief and states what the project is, who’s involved, and why it’s important.
• A project definition that describes the project’s deliverables and purpose in more detail.
• Goals and objectives that align with employer or client expectations.
• A project scope that roughly estimates project tasks, milestones, and deliverables.
• Context explaining the problem your project seeks to solve, tying it to the company's strategic plan.
• Success criteria that define markers for success beyond simply completing the project.
• Stakeholder demands, like what project terms exist to meet stakeholder needs.
• A budget proposal breaking down costs to inform financial decision-making.
• A schedule like a Gantt chart that clearly showcases due dates and dependencies.
• Rules, like roles, responsibilities, and approval processes, as well as any company procedures that apply to your project.
• Communication details such as a scheduled reviewal plan and how your team will communicate with external stakeholders.
• An update plan defining how and when you'll provide project progress updates.
• A risk assessment defining threats and offering mitigation plans.

Additionally, some business cases include market research, competitor analysis, and marketing strategies if projects require it.

8 tips for writing an excellent business case

It’s time to show your work. Feel free to create a template from the above business case elements, filling it in as you follow these eight tips.

1. Highlight problems the project solves

Employers care about solving target audience pain points because, if they do, they gain customer interest and retention. To persuade the reader it’s a worthwhile initiative, stress how this project solves consumer problems.

Another convincing factor is how your project solves business issues. Throughout your business case development, stress how this project might mitigate challenges like decreased revenue or staffing difficulties.

2. Research alternative solutions

The best way to empathically articulate this project’s benefits is if you can show that alternatives aren’t worthwhile. You don’t want a C-suite exec to respond to your business case with another method you hadn’t considered yet — that suggests you didn’t do your due diligence in researching this solution. So spend some time in your business case acknowledging alternatives and explaining why your solution is best.

3. Fill out each section considering your audience

As you fill out your document, always keep the reader in mind. You might even create separate cases for different audiences, like one that convinces your manager to approve and run a project and one that persuades a client to invest. Personalize the entire document by addressing each audience’s concerns so they feel you’ve thoroughly considered their needs.

4. Outline your implementation plan

Remember: Creating this document is already part of the project planning phase, and it can help you develop an implementation plan. Touch on this roadmap in your business case so readers understand next steps and see that you’ve thoroughly considered how to execute your chosen solution.

5. Create a compelling story

Engage your audience by adding visual stimuli and storytelling elements, like using emotion-focused language to effectively express your target audience’s pain points. Add illustrations and charts that support your research and objectives so the reader gains quick and convincing data-driven takeaways. And when explaining your case, use real-world analogies and metaphors to make the material more human and relatable.

6. Use previous examples

One way to sell your case is to mention similar situations where project rejection led to adverse business outcomes. You could present this information as a business case analysis, comparing similar factors in related cases.

7. Simplify your case

Consider the executive summary an "elevator pitch,” using it to quickly convince the reader and allowing all other details to simply bolster what they already think is a great initiative.

8. Use everyday language

The decision-maker might not be a project manager or industry-relevant professional, so use plain, easy-to-digest language, avoiding technical jargon and complex details.

Make your business case a reality with Roadmunk by Tempo

Once you have a successful business case, it's time to start working on your project plan. Roadmunk by Tempo helps you create audience-friendly, comprehensive, and flexible roadmaps your team can easily update. Then, use Timesheets by Tempo to track team progress and ensure you meet project deadlines.

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How To Write Business Plans and Business Cases

Setting the scene

“What’s the difference between a business case and a business plan?”

Few people can produce a ready answer to that question. After all, both business plans and business cases make predictions about future outcomes, but there is a big difference between the two.

Business plans

are based on the business model or business line of an organisation. They explain how the business will achieve its operational and financial goals by capitalising on the capability of the organisation.

Business plans may be written to explain how a business may meet its growth targets over one or more years.

Business cases

are based on a cost model. Business cases comprise an argument to convince a decision maker to approve a specific course of action over another.

A business case may be produced to justify the purchase of capital equipment.

1. What is a business plan?

2. how do i prepare, 3. how do i start, 4. how long should a business plan be, 5. how should i clarify my ideas, 6. what should a business plan contain, a) executive summary, b) management profiles, c) vision statement, d) mission statement.

e) Your proposition – company, product or service

f) Market description, analysis, segmentation, targeting and positioning

G) explanation of how the product, service or idea is different, h) outline marketing plan, i) outline sales plan and forecast, j) resources.

k) Financials (to include ROI and cash flow)

l) How to make it happen

7. should i use images and colour, 8. how should i present charts, 9. what is a business case, 10. what is the first stage, 11. how do i test my ideas, 12. defining options, 13. structure of a business case, 14. how do i encourage a decision, 15. any winning tips.

16. One last thing…

Business Plan

A business plan is a written document which describes your business, your goals and how you intend to achieve them over a given period. It is a forecast. It describes your starting point and the strategy you need to reach your proposed end point in one, two or three years.

It details your aims, describes your products and services, analyses market demand, and details the resources you need, the capability you have, and the income you anticipate to generate over a period of time.

In essence, your plan should provide sufficient information for the reader to calculate the credibility of your strategy, your chance of success, and in some cases, the risk people may take by investing in your business.

Ensure that you can answer questions about your plan with logic, completeness and clear thinking. You need to be able to describe three things:

• The situation – opportunity or problem
• Your plan to address the situation
• The payback

Creating an effective business plan means converting an exciting idea in your head into a compelling story on paper. It means applying logic and reasoning to your thoughts and creating a credible plan of action. Above all, it requires clarity of thought.

Clarity is the connection of your idea – your business proposition – to a coherent set of words, sentences, and numbers. It details what you wish to achieve – the business benefits – the why and who and when and where and how you are going to achieve them.

You must be able to answer why people should buy your business, product, service, or idea, in preference to someone else’s. Your answer should include the financial reasons why people should buy from you, which then means that your answer is essentially your value proposition.

A value proposition is a statement of value which you propose to deliver to potential buyers. This should be your starting point for developing your business plan.

Think of your value proposition as your elevator pitch. It should be clear, concise and compelling. It is about how you can deliver greater value or offer a better deal to potential customers than the current market can offer.

A value proposition details how your business, product or service can offer higher quality, lower cost, or something else desired by your customers, that your competitors can neither offer nor replicate easily. A value proposition should comprise a simple set of statements which:

• Describe how your business, product, service, or idea addresses the situation – problem or opportunity.
• Detail why the situation should be addressed or needs to be addressed in terms of opportunity, difficulty, or cost.
• Explain the benefits of your business plan – your business, product, service, or idea over alternatives.
• State the cost advantages of your business, product, service, or idea over competitive alternatives.

A business plan should contain essential information and no more than essential information necessary for the plan. The plan should be as short and as concise as possible. But it must contain everything necessary. In other words, it must be complete and leave no obvious questions unanswered.

A business plan can be as short as a couple of pages to many pages long depending on the product, service, market, and complexity of the proposition.

You need to have clarity about all aspects of your business plan and the influences upon it. SWOT may help you to distinguish between unimportant and important aspects which you need to consider. A SWOT analysis is a way of focusing on factors which may influence your success.

In particular, you need to be clear about threats to your plan. Readers need to see that you are knowledgeable about the environment in which you will be trading. That means you should never skip over areas of potential difficulty. Instead, define, analyse and conclude how and why you can overcome them. Realism is desirable in all business plans.

The number of sections your plan needs depends on the focus, technology or complexity of the proposed offering and may include:

b) Management profiles (if relevant)

The executive summary is the most important part of the document because it is likely to be read by all stakeholders. But don’t think of it as purely a summary of your business plan.

Think of it as an opportunity to “sell” your business idea. Think impact, engagement, and appeal. From your first word to your last, your executive summary requires high energy.

Your first sentence should be a benefit-focused entrée into an appealing, scene setting, first paragraph.

It should detail your vision, mission, the situation, proposal, and payback. It needs to mirror your document in the precise order of your document – from the proposition, market description, considerations, resources required and return on investment to cash flow. It needs to be well-structured, appealing, and highly credible.

Sketch out your executive summary in draft before starting your document. It should represent the skeleton of your document. Produce it in rough before writing your document and complete it after writing your whole document.

An executive summary – over one or perhaps two pages – should have seven parts:

• Proposition summary and how it meets the customer/market needs
• Situation definition - problem or opportunity
• Approach and proposition
• Financials/costings/payback
• Benefits/rationale to approach
• How to make it happen

If the business plan is to secure funding, investors will want to know the capability, experience, and track record of the people who will be driving the business. Short biographies of key people should be detailed.

State where you see your business in the future. A vision statement is a high-level overview of the business, the characteristics the business will display, and the goals that it will have achieved by a specific time.

Summarise your company’s purpose, means of operation, market, and scope of activity.

e) Your proposition - company, product or service

This section should start with an outline of why you have developed your offering – the need for it – and how it fits within the market, competitively. You should position your company, product or service in the mind of the reader.

The main focus of this section is on what you will offer the market in terms of business, product or service, technically and operationally. You should include charts, diagrams, and images as necessary to enable the reader to understand your offering and its comparative capability.

Ensure that the information you give is complete, that your narrative explains essential details, and that no questions are begged.

You should describe your product or service in terms of what marketers call a marketing mix. It’s a means of structuring an offering from a marketing perspective. It comprises: Product, Price, Placement, and Promotion, otherwise known as the 4 Ps.

This is about describing your product range or service, and how you will adapt it to support your customers’ needs and desires.

You should also include guarantees, support, and maintenance. Also include product variation, differentiation, and innovation.

This is the process of setting product prices. It may include discounts which relate to what you think customers are prepared to pay, and how they may wish to pay.

This might involve distribution channels, direct sales, indirect sales or e-commerce. In essence, you need to detail how you will get your product to market. Don’t go into detail here – instead, give detail at the section on sales plan and forecast.

This is about how you will promote your product, product line or company.

Markets are divided into groups of buyers – or segments. You should describe your market in segments.

Tailoring an approach to one or more groups – or one or more segments – over others is the only way to promote your offering. That’s why airlines promote first class services differently from economy class services.

One other thing you need to be aware of is that the segment or segments you propose are valid. Provided that a segment can be identified, is of reasonable size and can be reached economically, then it is a valid marketing target. Here are some variables:

These relate to age, gender, income, race, and ethnicity for the purpose of creating a clear and complete picture of the characteristics.

There are often regional differences. Customer preferences differ depending on which part of the country they may live.

Some customers are brand loyal. Others are heavy users while others are identified as light users.

This is based on activities, interests and opinions.

Segmentation

Segments which should be attractive are those which complement your business’s strengths and where demand, profitability, and growth are favourable.

Identify the variables, and then:

• Group potential customers into segments
• Group products into categories
• Produce Market/Product grid/s

You should also detail market influences. Markets are influenced by a number of factors such as technology, economics, politics, geography, social views, and so on. Refer to your SWOT analysis. You need to identify market factors which may influence your business plan and link them to justify your approach to achieving your proposition.

Link your marketing mix to your target segment. To do so, you need to answer these questions:

• How well is our target segment served by existing suppliers?
• What would be the cost of reaching that segment?
• How compatible with our strengths is this new target segment?
• What is our competitive position?
• What is the market growth potential?

Positioning

You need to think about how you compare with competitive products and services. You then need to decide how you wish to position your product or service in the eyes of your market.

Positioning is the process by which you create an image or identity in the minds of your target market. It is the “relative competitive comparison” your product or service occupies in a given market – as perceived by the market.

It is about identifying the differential advantage of your business to your target segments. For example, a Rolls Royce Dawn is positioned differently from a Ford Fiesta even though both products are classified as cars.

Your business plan may be focused on an existing product or service or developing something completely new. Alternatively, you may wish to compare what you are offering with a competitive product or service.

Differentiation is about a product, service or idea which is perceived by the market – not purely by you – as being different. Differentiation is the aim of most businesses.

It may relate to lower cost, faster delivery, higher quality, greater adaptability and so on. The aim of differentiation is to match your offering to customer needs, attract your market and generate market advantage. You need to be clear about how you are going to achieve this.

At this point, you should also detail the uniqueness of your offering – your unique selling proposition (USP) – which distinguishes you from the competition.

Think through each element of your offering and link it to the process of getting your offering to market.

Produce an outline marketing plan – summarising essential points. Leave full detail to the marketing plan. Digital marketing is likely to play a role in promoting your business, product or service, so you need to detail how it will achieve your goals.

A typical marketing plan includes the following:

Detail the income the plan is to generate.

• Environment – Focus on every  external influence on getting your offering to market. It includes economics, social trends, political influences, legal and technological influences. Some factors may be advantageous to you, some not. Whatever they are, you need to detail them.
• Competitors – You need to detail the market positioning of all relevant competitors and their comparative strengths and weaknesses with specific reference to your market. 

Based on the above analysis.

Segmentation, targeting, and positioning.

The four Ps – Product, Price, Promotion, and Placement.

Activity is likely to include search engine optimisation (SEO), content marketing, paid advertising (PPC) and social media marketing. Whatever it is that you decide to do, you need to detail it. Produce a chart of proposed activity against forecast return, over time.

Link these through to the financial section of your business plan.

The outline sales plan and forecast should include essential sales information from your full sales plan, and nothing more. It should detail the tactics you intend to use to reach your sales goals. If B2B, you should specify the market segments you intend to target and the companies and people you intend to approach.

You need to provide a chart which specifies sales resourcing needs and timescales of the complete sales lifecycle. It should be designed so that it is understood at a glance.

If you have prospects stating an intent to buy, these statements should be included here. The sales plan is the sharp end of your business plan.

The purpose of this section is to give readers confidence by demonstrating realism about your market and credibility about your forecast.

You should detail the resources you need to achieve your business goals – people, time, equipment and money. Specify lead times – recruitment times if relevant – and whatever else you deem essential. Demonstrate how you will achieve what you propose to achieve with the resources you propose to have.

k) Financials

The primary purpose of business, any business, is to make a profit. There is no other primary purpose. For that reason, the methods by which profit will be made needs to be detailed, clear and understandable at a glance

It should be complete and presented simply and clearly, and include:

• Funding requirements, envisaged return on investment, and cashflow.
• Clear description attached to numbers and lines as appropriate.
• Tables and charts with a consistent style.
• Key messages highlighted from each table or chart.

Include a timeline of who has to agree on what and by when.

The answer is yes. Images are a good way of getting points across. If colour makes your proposal look more attractive to read, then use it. Ensure, however, that images and colour support your message and don’t get in the way of it.

Give your chart a figure number and provide a summary underneath explaining the message your chart conveys. Provide narrative. Never leave it to the reader to interpret what your image or chart might mean.

Business Case

A business case is a justification for a proposed project or plan of action on the basis of its expected commercial benefit. It is a business argument.

It reveals a situation which is either a problem or an opportunity and details how the situation could be addressed in terms of benefits and risks.

It needs to show a compelling case for change, value for money, commercial viability, affordability, and achievability.

The first stage is to produce a rough justification for addressing a problem or opportunity. It may start with your belief that you can improve a situation, save cost, make money, or achieve competitive advantage.

Whatever it is, you are unlikely to have complete information straight away, but you should have a rough idea.

For instance, you should have an approximate idea of feasibility factors. These may include situation knowledge, market size, competition, income opportunity, costs, funding, resourcing, and risk.

What you should be clear about are the drivers for addressing the situation and why your idea, product or service may have commercial traction. While you might not have complete information, you should have sufficient data to list your anticipated business benefits.

The result of this information is called your value proposition and is the basis of your business case. Refer to section 3 to remind yourself of what a value proposition should contain.

At this stage and at every stage of writing your business case, you need to probe and test your ideas. Great business narrative doesn’t beg questions but answers them, so every one of your statements needs to be supported and credible.

All options need to be defined, and your analysis needs to be non-controversial. Your analysis should be written in such a way that interested parties would agree with your analysis – even those who are likely to oppose your recommendations.

You should deal with researched facts and not show bias, or reveal recommendations. All reasonable options need to be considered including that of doing nothing (provided that is a reasonable option).

Options need to be detailed in precisely the same way – proposed option, implications, and payback – so that they can be compared equally. Consideration may be:

This relates to business synergy and strategic fit. It answers the question whether the option will be good for the overall business.

This aspect relates to whether it is good value for money.

This relates to how the business case will be structured financially and whether it can be considered to be a good deal.

This is primarily focused on whether the proposal can be funded and is affordable.

This aspect is concerned with whether the preferred option can be delivered successfully as outlined in the business case.

It should have 7 sections comprising:

Executive summary

Problem or opportunity definition, proposed business case, market analysis.

This is the most important section of your business case as it is likely to be read by all stakeholders. Produce a benefit-focused first sentence as an entrée into an appealing, scene setting, first paragraph. Your complete summary should be written so that it can be understood at a glance. It should be credible and highly persuasive.

You should draft your executive summary after you have drafted your value proposition but before writing your document. The draft will be approximate and should be finalised after the document has been written.

This section should mirror your document in the precise order of your document – from the proposition, market description, considerations, resources required to the return on investment.

From your first word to your last, your writing requires high energy. It should detail the purpose of your business case, the situation which it addresses, and above all, the benefits of your business case.

• Summary of proposed solution.
• Summary of the situation - problem or opportunity.
• Expected outcomes.
• Summary of benefits of proposal solution.

Detail the problem or opportunity so that it can be understood at a glance. Your writing should be jargon-free and easily understood by anyone not associated with your business idea.

Your analysis should be non-contentious and utterly factual of the problem or opportunity. It should provide a background and context to your business case and include research data both favourable and unfavourable to your proposition.

Identify all sources of information which contribute towards your proposition. These may include:

This is the main body of your business case. Your proposition and your approach to the problem or market should be detailed stage by stage. Start with a description of your offering in terms of benefits, features and advantages in that order.

Above all you must explain why your proposition is well-placed to address the situation and precisely how your approach complements your current business strategy.

Three questions your proposition needs to answer at every stage are: How does your idea compare against competitive ideas? How will you reach the market? Where’s the proof that you are likely to succeed?

Anticipate reader questions and answer them within your business case. Provide credibility and proof if possible at every stage.

As a conclusion to this section, you should detail your prospects – or likely users of your proposition or offering – along with their job titles. Readers will be looking for assurance that you really do know your market, can reach it, and are able to generate your forecast financial return.

• Explanation of how the solution addresses the problem or opportunity
• Cost savings
• Non-economic (perhaps relating to regulatory compliance)

If your business case is opportunity focused, then market analysis, competitor analysis and factors related to the selling environment need to be evaluated.

Show complete understanding of the market, and provide a detailed explanation of how you will reach the market.

Identify which organisational objectives the business case supports and explain how it will support them. (These may include policy, regulatory requirements or commercial governance.)

• List assumptions which drive the business case.
• Detail the environment (financial, operational, political or other) on which the solution is dependent.

Summarise competitive practices or competitor positioning. If helpful, produce a SWOT analysis.

List alternative solutions including “do nothing” provided it’s a realistic alternative.

• Timescales for agreement stages.
• Invite questions.
• Summarise and conclude with strong benefit statement.

This section should provide a cost-benefit analysis detailing the pros and cons of your case. Use facts, figures, and charts to get your messages across and use captions to emphasise them.

Readers need to assimilate critical points from your data at a glance.

• Detail funding requirements, envisaged return on investment, and cash flow.
• Make sure description is attached to numbers and lines as appropriate.
• Ensure every table and chart has a consistent style.
• Highlight key messages from each table or chart.

List the benefits in order of importance. These should relate to all considerations from the financial to the strategic.

Specify the critical path – a timeline – of all stages of approval necessary to proceed. Include the names of the people who need to give their approval.

Once you’ve checked the coherence of your argument and the completeness of your document, it is time to cast a critical eye. In addition to being complete, your document needs to look highly readable.

Make sure that your proposition is business-appealing, logical, strong, well-written and with all essential facts and figures.

Ensure your document is clear, complete, and looks good. Appearance is important. Something which looks good is likely to be read. Masses of text is unappealing. Short paragraphs and clear structure is appealing. Ensure that essential information can be read at a glance.

16. One last thing...

Mistakes in spelling, punctuation or grammar not only distract but reduce the credibility of your document. Ask others to proofread. Then check and recheck before submitting what will become your highly effective business case.

This blog was written by Richard Walker, a director of Walkerstone Limited.

He can be contacted at: [email protected]

Walkerstone comprises business case writers, proposal writers and professional trainers.

We delivery scheduled courses, in-company training and executive coaching to people and organisations throughout Europe.

Courses include:

Business Case Writing

Essential Business Writing Skills

Report Writing

If you would  like to know more, do contact us . We’d be delighted to hear from you.

Email : [email protected]

Telephone : 01252 792 270

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How to Write a Business Case (Template Included)

Table of Contents

What is a business case, how to write a business case, business case template, watch our business case training video, key elements of a business case, how projectmanager helps with your business case.

A business case is a project management document that explains how the benefits of a project overweigh its costs and why it should be executed. Business cases are prepared during the project initiation phase and their purpose is to include all the project’s objectives, costs and benefits to convince stakeholders of its value.

A business case is an important project document to prove to your client, customer or stakeholder that the project proposal you’re pitching is a sound investment. Below, we illustrate the steps to writing one that will sway them.

The need for a business case is that it collects the financial appraisal, proposal, strategy and marketing plan in one document and offers a full look at how the project will benefit the organization. Once your business case is approved by the project stakeholders, you can begin the project planning phase.

Projects fail without having a solid business case to rest on, as this project document is the base for the project charter and project plan. But if a project business case is not anchored to reality, and doesn’t address a need that aligns with the larger business objectives of the organization, then it is irrelevant.

Get your free

Use this free Business Case Template for Word to manage your projects better.

The research you’ll need to create a strong business case is the why, what, how and who of your project. This must be clearly communicated. The elements of your business case will address the why but in greater detail. Think of the business case as a document that is created during the project initiation phase but will be used as a reference throughout the project life cycle.

Whether you’re starting a new project or mid-way through one, take time to write up a business case to justify the project expenditure by identifying the business benefits your project will deliver and that your stakeholders are most interested in reaping from the work. The following four steps will show you how to write a business case.

Step 1: Identify the Business Problem

Projects aren’t created for projects’ sake. They should always be aligned with business goals . Usually, they’re initiated to solve a specific business problem or create a business opportunity.

You should “Lead with the need.” Your first job is to figure out what that problem or opportunity is, describe it, find out where it comes from and then address the time frame needed to deal with it.

This can be a simple statement but is best articulated with some research into the economic climate and the competitive landscape to justify the timing of the project.

Step 2: Identify the Alternative Solutions

How do you know whether the project you’re undertaking is the best possible solution to the problem defined above? Naturally, prioritizing projects is hard, and the path to success is not paved with unfounded assumptions.

One way to narrow down the focus to make the right solution clear is to follow these six steps (after the relevant research, of course):

• Note the alternative solutions.
• For each solution, quantify its benefits.
• Also, forecast the costs involved in each solution.
• Then figure out its feasibility .
• Discern the risks and issues associated with each solution.
• Finally, document all this in your business case.

Step 3: Recommend a Preferred Solution

You’ll next need to rank the solutions, but before doing that it’s best to set up criteria, maybe have a scoring mechanism such as a decision matrix to help you prioritize the solutions to best choose the right one.

Some methodologies you can apply include:

• Depending on the solution’s cost and benefit , give it a score of 1-10.
• Base your score on what’s important to you.
• Add more complexity to your ranking to cover all bases.

Regardless of your approach, once you’ve added up your numbers, the best solution to your problem will become evident. Again, you’ll want to have this process also documented in your business case.

Step 4: Describe the Implementation Approach

So, you’ve identified your business problem or opportunity and how to reach it, now you have to convince your stakeholders that you’re right and have the best way to implement a process to achieve your goals. That’s why documentation is so important; it offers a practical path to solve the core problem you identified.

Now, it’s not just an exercise to appease senior leadership. Who knows what you might uncover in the research you put into exploring the underlying problem and determining alternative solutions? You might save the organization millions with an alternate solution than the one initially proposed. When you put in the work on a strong business case, you’re able to get your sponsors or organizational leadership on board with you and have a clear vision as to how to ensure the delivery of the business benefits they expect.

Our business case template for Word is the perfect tool to start writing a business case. It has 9 key business case areas you can customize as needed. Download the template for free and follow the steps below to create a great business case for all your projects.

One of the key steps to starting a business case is to have a business case checklist. The following is a detailed outline to follow when developing your business case. You can choose which of these elements are the most relevant to your project stakeholders and add them to our business case template. Then once your business case is approved, start managing your projects with a robust project management software such as ProjectManager.

1. Executive Summary

The executive summary is a short version of each section of your business case. It’s used to give stakeholders a quick overview of your project.

2. Project Definition

This section is meant to provide general information about your projects, such as the business objectives that will be achieved and the project plan outline.

3. Vision, Goals and Objectives

First, you have to figure out what you’re trying to do and what is the problem you want to solve. You’ll need to define your project vision, goals and objectives. This will help you shape your project scope and identify project deliverables.

4. Project Scope

The project scope determines all the tasks and deliverables that will be executed in your project to reach your business objectives.

5. Background Information

Here you can provide a context for your project, explaining the problem that it’s meant to solve, and how it aligns with your organization’s vision and strategic plan.

6. Success Criteria and Stakeholder Requirements

Depending on what kind of project you’re working on, the quality requirements will differ, but they are critical to the project’s success. Collect all of them, figure out what determines if you’ve successfully met them and report on the results .

7. Project Plan

It’s time to create the project plan. Figure out the tasks you’ll have to take to get the project done. You can use a work breakdown structure template  to make sure you are through. Once you have all the tasks collected, estimate how long it will take to complete each one.

Project management software makes creating a project plan significantly easier. ProjectManager can upload your work breakdown structure template and all your tasks are populated in our tool. You can organize them according to your production cycle with our kanban board view, or use our Gantt chart view to create a project schedule.

8. Project Budget

Your budget is an estimate of everything in your project plan and what it will cost to complete the project over the scheduled time allotted.

9. Project Schedule

Make a timeline for the project by estimating how long it will take to get each task completed. For a more impactful project schedule , use a tool to make a Gantt chart, and print it out. This will provide that extra flourish of data visualization and skill that Excel sheets lack.

10. Project Governance

Project governance refers to all the project management rules and procedures that apply to your project. For example, it defines the roles and responsibilities of the project team members and the framework for decision-making.

11. Communication Plan

Have milestones for check-ins and status updates, as well as determine how stakeholders will stay aware of the progress over the project life cycle.

12. Progress Reports

Have a plan in place to monitor and track your progress during the project to compare planned to actual progress. There are project tracking tools that can help you monitor progress and performance.

Again, using a project management tool improves your ability to see what’s happening in your project. ProjectManager has tracking tools like dashboards and status reports that give you a high-level view and more detail, respectively. Unlike light-weight apps that make you set up a dashboard, ours is embedded in the tool. Better still, our cloud-based software gives you real-time data for more insightful decision-making. Also, get reports on more than just status updates, but timesheets, workload, portfolio status and much more, all with just one click. Then filter the reports and share them with stakeholders to keep them updated.

13. Financial Appraisal

This is a very important section of your business case because this is where you explain how the financial benefits outweigh the project costs . Compare the financial costs and benefits of your project. You can do this by doing a sensitivity analysis and a cost-benefit analysis.

14. Market Assessment

Research your market, competitors and industry, to find opportunities and threats

15. Competitor Analysis

Identify direct and indirect competitors and do an assessment of their products, strengths, competitive advantages and their business strategy.

16. SWOT Analysis

A SWOT analysis helps you identify your organization’s strengths, weaknesses, opportunities and threats. The strengths and weaknesses are internal, while the opportunities and threats are external.

17. Marketing Strategy

Describe your product, distribution channels, pricing, target customers among other aspects of your marketing plan or strategy.

18. Risk Assessment

There are many risk categories that can impact your project. The first step to mitigating them is to identify and analyze the risks associated with your project activities.

ProjectManager , an award-winning project management software, can collect and assemble all the various data you’ll be collecting, and then easily share it both with your team and project sponsors.

Once you have a spreadsheet with all your tasks listed, you can import it into our software. Then it’s instantly populated into a Gantt chart . Simply set the duration for each of the tasks, add any dependencies, and your project is now spread across a timeline. You can set milestones, but there is so much more you can do.

You have a project plan now, and from the online Gantt chart, you can assign team members to tasks. Then they can comment directly on the tasks they’re working on, adding as many documents and images as needed, fostering a collaborative environment. You can track their progress and change task durations as needed by dragging and dropping the start and end dates.

But that’s only a taste of what ProjectManager offers. We have kanban boards that visualize your workflow and a real-time dashboard that tracks six project metrics for the most accurate view of your project possible.

Try ProjectManager and see for yourself with this 30-day free trial .

If you want more business case advice, take a moment to watch Jennifer Bridges, PMP, in this short training video. She explains the steps you have to take in order to write a good business case.

Here’s a screenshot for your reference.

Transcription:

Today we’re talking about how to write a business case. Well, over the past few years, we’ve seen the market, or maybe organizations, companies or even projects, move away from doing business cases. But, these days, companies, organizations, and those same projects are scrutinizing the investments and they’re really seeking a rate of return.

So now, think of the business case as your opportunity to package your project, your idea, your opportunity, and show what it means and what the benefits are and how other people can benefit.

We want to take a look today to see what’s in the business case and how to write one. I want to be clear that when you look for information on a business case, it’s not a briefcase.

Someone called the other day and they were confused because they were looking for something, and they kept pulling up briefcases. That’s not what we’re talking about today. What we’re talking about are business cases, and they include information about your strategies, about your goals. It is your business proposal. It has your business outline, your business strategy, and even your marketing plan.

Why Do You Need a Business Case?

And so, why is that so important today? Again, companies are seeking not only their project managers but their team members to have a better understanding of business and more of an idea business acumen. So this business case provides the justification for the proposed business change or plan. It outlines the allocation of capital that you may be seeking and the resources required to implement it. Then, it can be an action plan . It may just serve as a unified vision. And then it also provides the decision-makers with different options.

So let’s look more at the steps required to put these business cases together. There are four main steps. One, you want to research your market. Really look at what’s out there, where are the needs, where are the gaps that you can serve? Look at your competition. How are they approaching this, and how can you maybe provide some other alternatives?

You want to compare and finalize different approaches that you can use to go to market. Then you compile that data and you present strategies, your goals and other options to be considered.

And then you literally document it.

So what does the document look like? Well, there are templates out there today. The components vary, but these are the common ones. And then these are what I consider essential. So there’s the executive summary. This is just a summary of your company, what your management team may look like, a summary of your product and service and your market.

The business description gives a little bit more history about your company and the mission statement and really what your company is about and how this product or service fits in.

Then, you outline the details of the product or service that you’re looking to either expand or roll out or implement. You may even include in their patents may be that you have pending or other trademarks.

Then, you want to identify and lay out your marketing strategy. Like, how are you gonna take this to your customers? Are you going to have a brick-and-mortar store? Are you gonna do this online? And, what are your plans to take it to market?

You also want to include detailed information about your competitor analysis. How are they doing things? And, how are you planning on, I guess, beating your competition?

You also want to look at and identify your SWOT. And the SWOT is your strength. What are the strengths that you have in going to market? And where are the weaknesses? Maybe some of your gaps. And further, where are your opportunities and maybe threats that you need to plan for? Then the overview of the operation includes operational information like your production, even human resources, information about the day-to-day operations of your company.

And then, your financial plan includes your profit statement, your profit and loss, any of your financials, any collateral that you may have, and any kind of investments that you may be seeking.

So these are the components of your business case. This is why it’s so important. And if you need a tool that can help you manage and track this process, then sign up for our software now at ProjectManager .

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ORGANIZING4INNOVATION

Business plan, case, model, or canvas?

While related, business plans, business cases, business models, and business model canvases are very different things that serve different purposes. What to use when?

Let me first explain what is what.

A business plan

A business plan is a detailed description of how you plan to start and grow your business. Typically it is a plan for a time period of 1 to 3 years. It details what the organization plans to do. That is, what the cost structure will be, the expected revenues, and how you will go about the execution. As you can imagine, writing such a plan requires a lot of data. Data often does not exist when the service is novel or when you are just starting the innovation journey for a new offering. Nevertheless, most investors ask for a business model before they are willing to invest in a start-up. For some useful dos and don’ts, including templates, go here .

A business case

A business case explains why it is worth exploring an opportunity. It is the justification for a proposed project. Making the case why spending money figuring out how to address a problem or going after an opportunity makes sense. This terminology is more used in project management than entrepreneurship. In sum, it explains why the organization should fund the adventure. Our hands-on approach will help you create a business case for your project in just a few weeks. More than you want to know about writing a business case can be found here .

A Business model

A business model explains how a new service or company is going to generate revenues and serve its customers. There are various standard models, such as a fee-for-service, razor-blade, or subscription models, see here for nine commonly used models .  Combinations of these models are of course possible too. Please beware that the business model is not cast in stone. It takes most start-ups about two years, to figure out which business model works best for them.

A business model canvas

A business model canvas is an abbreviated one-page overview that provides a snapshot picture of a start-up. It sketches who the start-up targets as clients. What the benefits are of the provided solution. How customers will be reached etc. All these topics are subject to change in the early phases of a start-up. Therefore, the canvas is meant as a snapshot. A picture that requires periodic if not constant updating. More on the business model canvas, including templates, can be found on Strategyzer.com .

Throwing business plans out of the window?

In the entrepreneurship community, business plans are no longer in vogue, because most start-ups lack the data to write an accurate and truthful plan. Instead, entrepreneurs are now using the business model canvas, especially in the early stages of their start-up. The canvas is part of the lean start-up methodology . Following this methodology, a start-up is a series of experiments to collect data and figure out what actually works. The business model canvas helps to ensure these experiments are aligned. It also ensures all the necessary components that will be needed to run the business are being addressed.

What about organizations, should they abandon the business plan too?

Not so fast I would say. Companies have a huge advantage over start-ups. They have experience. Many of the innovation projects a company undertakes are variations on a theme. If that is the case for your project, new product, or new service, you should dig up the data on these previous projects and undertakings. Those experiences provide useful information that will help you plan the future and write your business plan. After all, if the data is there, you should use it to learn valuable lessons from the past. Stand on the shoulders of giants if you can!

However, if the project entails venturing into novel territory, then it will be a waste of time to write a business plan. You will lack the data necessary to make meaningful projections about the future.

The business model canvas is most suited to address changes and uncertainties, however, it does not provide sufficient information to get approval for your project.

While helpful at the start, the business model canvas or variations made for organizations alone will be insufficient. Most organizations require you to create a business case, as a justification, before an investment can be made in your innovation project.

Planning for the future

In sum, whether it is a case, plan or canvas, all these templates enable teams to plan for the future. They describe why it is worth the time and effort to explore an opportunity, how (new) clients will be served, and what it will take to get there. The more data you have, the more elaborate and detailed you can – and should- make your plans. If you have data from similar experiences in the past - or if you have sufficient data on your present endeavor - that you can use to extrapolate and project the future, write a business plan. A plan that not only justifies your project but also provides targets for the execution.

If you don’t have such data, start with a light version. Use the business model canvas to start collecting necessary data. If you wonder how, consider signing up for one of our support plans .

A final note

Whether you ask - or are asked- to create a canvas, write a case, or draft a business plan, you need the knowledge and tools to do so. While not overly complex, there are dos and don'ts that can save your project or business from failure. Many professionals - physicians, lawyers, and engineers - are trained to practice your trade, not in the business aspects of your profession. Creating a business case provides an excellent opportunity to get engaged in the business side of your organization.

Getting your project set up properly will save you a lot of time and money down the road, in the execution of your project.

Creating a business case can be a challenge if you have to Google your way through on your own. I have seen many innovators wasting a lot of their valuable time trying to figure out what template to use, what information to add, and where to find the relevant data. Consider signing up for one of our support plans,   if you want to get results 3x faster and with a 5x higher chance of success.

Related blogs:

• Prioritizing in uncertain times
• Business Model Innovation
• How to differentiate between good and superior business case proposals?
• It takes more than a business case to get your innovation project approved

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How to Write a Business Case (With Example & Template)

May 19, 2022 - 10 min read

A business plan is a straightforward document. In it, you’ll include market research, your overall goals for the business , and your strategies for achieving those goals. 

But what is a business case and why do you need one if a business plan outlines everything else?

A business case takes a closer look at a specific problem and how you can solve it. Think of a business case as the reason you create a project you’re going to manage in the first place. 

The article provides a step-by-step guide on how to write a successful business case, including a checklist for identifying problems, researching solutions, and presenting to stakeholders. As a bonus, we’ll show you how to use Wrike to manage your product business cases with a requirements management template or implement them with a project scheduling template .

What is a business case?

A business case is a project you’ll assemble for identifying, addressing, and solving a specific business problem. 

The key to a business case is the change it creates in your business. Developing a business case starts with identifying a problem that needs a permanent solution. Without that lasting change, a business case is only an observation about what’s going wrong. A complete business case addresses how a company can alter its strategy to fix that problem.

Front-to-back, a business case is a complete story. It has a beginning, a middle, and an end. It typically looks like this:

• Beginning: Someone identifies a problem within the business and presents the business case to the key decision-makers.
• Middle: With the project go-ahead, the company launches an internal team to address the business case and deliver results.
• End: The team delivers a presentation on the changes made and their long-term effects.

In short, a business case is the story of a problem that needs solving.

Examples of business cases

The problem for many companies is that they can turn a blind eye to challenges that are right in front of their faces. This is even the case when the company has a compelling product to sell.

Consider the example of Febreze . In the mid-1990s, a researcher at Procter & Gamble was working with hydroxypropyl beta-cyclodextrin. His wife noticed that his clothes no longer smelled like cigarettes, which was a frequent complaint.

P&G had something of a miracle product on its hands. However, their approach was wrong. They initially marketed Febreze as a way to eliminate embarrassing smells. Predictably, the product flopped. 

But P&G stuck at it. They had a potential business case on their hands: a highly marketable product proved difficult to market. What was going wrong? Working on the business case from beginning to end provided the answer.

After some focus group testing, P&G found out that few consumers recognized the nasty odors they were used to. Instead, they learned to use a different business case for Febreze: it was a cleaning product now, a way to make the house smell nice when the floors are vacuumed and the counters are wiped clean. They gave it its own pleasant smell and fashioned it into a cleaning product. And because it worked so well, so did the campaign. 

That’s an example of a business case overall. But let’s get specific: developing a business case is easier when you have a template to look at. Let’s build an example using a made-up company, ABC Widgets, and a hypothetical business case. Let’s call our business case example “Operation Super Widgets”:

Business Case: ABC Widgets

Section 1: summary.

Briefly describe the problem and the opportunities.  

ABC Widgets’ latest widget, the Super Widget, is suffering from supply issues, requiring higher shipping costs to procure the necessary resources, and eating into profits. We need to switch to a new supplier to restore the viability of the Super Widget.

Section 2: Project Scope

This section should include the following:

• Financial appraisal of the situation. Super Widgets are now 20% more expensive to produce than in the year prior, resulting in -1% profits with each Super Widget sold.
• Business objectives. To get revenues back up, we need to restore profit margins on Cost Per Unit Sold for every Super Widget back to 2020 levels. Benefits/limitations. Restoring Cost Per Unit Sold will restore 5% of sagging revenues. However, we are limited to three choices for new Super Widget suppliers.
• Scope and impact. We will need to involve supply chain managers and Super Widget project management teams, which may temporarily reduce the number of widgets we’re able to produce, potentially resulting in $25,000 in lost revenue.
• Plan . Project Management Teams A and B will take the next two weeks to get quotes from suppliers and select one while integrating an immediate plan to bring in new Super Widget parts for manufacturing within four weeks.
• Organization. Team Member Sarah will take the lead on Operation Super Widget Profit. Both teams will report to Sarah.

This is a bare-bones example of what a business case might look like, but it does hit on the key points: what’s the problem, how can you fix it, what’s the plan to fix it, and what will happen if you succeed?

How do you write and develop a business case?

When writing your own business case, the above example is a good guide to follow as you get started with the basics. 

But, once you’re more familiar with the nuts and bolts, it’s also worth being prepared for some potential roadblocks you could face along the way. 

Challenges of writing a good business case

Why don’t more companies create a business case? It might come down to a lack of good communication. Many people don’t even know how to write a business case, let alone present one.

“The idea may be great, but if it’s not communicated well, it won’t get any traction,” said Nancy Duarte , communication and author who wrote The HBR Guide to Persuasive Presentations.

The key challenge, notes Duarte, is taking abstract business concepts (like lagging numbers) and turning them into an immediately recognizable problem. After all, if a company already had perfect awareness that it was making a mistake, it likely would find a way to stop the error in its tracks. 

A business case is challenging because it usually means you’ll have to persuade someone that change is needed. And change can be difficult. In a thriving business, it’s especially problematic because it’s easy to point to the bottom line and say that whatever the company is doing is already working.

How do you present a business case?

The tips and examples above give you some nice remedies for creating a business case without the typical problems. But you’ll still want to present a business case with the straightforward proposals and numbers you’d associate with any new project. 

Essentially, it all comes down to how well your business case can persuade the decision-makers. That’s why you shouldn’t just build a case off of raw numbers. The bottom line might be a compelling argument, but it’s not always what “clicks.” 

If you’re presenting a business case, you’re a salesperson. And not every sale is a matter of precise logic. It’s also about emotion—the story of why something’s gone wrong and what needs doing if you’re going to overcome it. 

The art of a good business case is the art of persuasion. Keep these specific points in mind as you craft one of your own:

• Point to an example of a bad business case and liken it to the present case . No one likes the idea of watching themselves walk into a mistake. Presenting an example of a business that made the same mistake your company is making and then translating it into the present moment is a compelling way to craft a business case that makes ears perk up.
• Build a narrative. Nancy Duarte pointed out that in one business case, a client convinced a CEO to follow through with a project by using simple illustrations. It’s not that the idea of adding illustrations to the business case was so great. It’s that the illustrations were able to tell a compelling story about why the case needed to go through.
• Distill the idea into an elevator pitch. Try this exercise: get your business case down to one sentence. If you can’t explain it any more simply than that, your business case might not be as memorable as it needs to be to sway decision-makers.
• Use analogies to drive the point home. Let’s say you discovered a problem in a growing business. Overall, revenues are good — but you’ve noticed an associated cost that has the potential to explode in the future and tank the business. But it’s not compelling to use dollars and cents when the business is doing so well. Instead, consider introducing the business case with a simple analogy: “Without repair, every leaky boat eventually sinks.” You now have their attention. Use the numbers to drive the point home, but not to make the point.

If you’re presenting a business case to decision-makers, remember that it’s not only the logic of your argument that will convince people — it’s how persuasive you can be.

Business case checklist

Before you can check “learn how to write a business case” off your list, you have to know the essentials. Make sure you include the following elements in your business case checklist (and, of course, your business case itself):

• Reasons. This should be the most compelling part of your business case. You can tell a story here. And the most compelling stories start with a loss or a complication of some sort. What is the threat to the business that needs remedy? What are the reasons for moving forward?
• Potential courses of action. It’s not a complete story until we know the next chapter. A business case isn’t just about the problem — it’s about rectifying a problem through the solution. Recommend a few specific courses of action to help spur discussion about what to do next.
• Risks and benefits. Not every solution is going to be perfectly clean. There are going to be solutions with downsides. There are going to be costs along with the benefits. Make sure to include each of these to give a clear and complete picture. This is the time to manage expectations — but also the time to inspire action.
• Cost. What’s it going to cost to complete the project? The people making the decisions need to know the bottom line figure to assess which business cases to prioritize.
• Timeline. A good project isn’t only measured in dollars but in days, weeks, and months. What is the expected timeline for the business case? How quickly can the problem meet its solution? 

With every business case, specificity is key. A vague timeline won’t help — a timeline with specific weekly milestones looks more achievable. To make your business case more compelling, always look for the specific details that tie your story together.

Business case template

A business case template is a document that outlines the key elements of a business case in a structured format. By using a standardized template, companies can ensure that all relevant information is captured and shared in a clear and consistent manner.

Depending on the size of your business and the scope of your project, your business case template can be as detailed or as simple as you like. For a smaller project, you can use a one-pager to get started, detailing the main points of your project, which include:

• Executive summary: An overview of your project, its goals, and the benefits of completing it for your business
• Team and stakeholders: A list of the relevant people involved in your project, and their contact information
• SWOT analysis : An analysis of how your strengths, weaknesses, opportunities, and threats weigh up against your competitors
• Risk analysis: An overview of the kind of risks that are involved with your project and how you may avoid them
• Budget and financial plan: Details of your budget and where you may secure financing for your project
• Project plan: A schedule of how you plan to implement your project and what tasks are involved

Let's see what that might look like.

How to write a business case with Wrike

Wrike’s project management software can step in and turn a business case from the seedling of an idea to a full-fledged initiative. 

The requirements management pre-built template can help you document and track project requirements in a structured manner. The template includes sections for capturing stakeholder requirements and business cases, as well as any constraints that may affect the project’s success. By using this template, you can ensure that all necessary requirements are identified and that potential issues are addressed early in the project planning process.

If you want to move from the business case description to the actual implementation faster, consider using the project scheduling template . This template can help you create a detailed project timeline with milestones, identify task dependencies, and assign resources. By utilizing this template, you can ensure that the project is realistically achievable and meets all business needs, giving stakeholders confidence in the project’s success.

Kat Boogaard

Kat is a Midwest-based contributing writer. She covers topics related to careers, self-development, and the freelance life. She is also a columnist for Inc., writes for The Muse, is Career Editor for The Everygirl, and a contributor all over the web.

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It helps users identify which requirements produced the most number of defects during a testing cycle.  Not only does this show areas in need of improvement, but it also helps mitigate future roadblocks and identify process weaknesses.  What is a requirements traceability matrix? A requirements traceability matrix (RTM) is a tool that helps identify and maintain the status of the project’s requirements and deliverables. It does so by establishing a thread for each component. It also manages the overall project requirements. This method is straightforward and can be easily done by anyone.  There are many kinds of RTMs. For example, a test matrix is used to prove that tests were conducted. It can also be used to identify issues and requirements during the development of software. What are the benefits of a requirements traceability matrix? An RTM ensures that projects do everything they set out to do. This step-by-step process helps identify the requirements and the products that are required to be tested successfully. It also helps in determining the project's direction and timeline.  First, it will support the identification of all requirements in a work product. Then, it will check to make sure there is coverage of all the requirements throughout the project’s lifetime.  The RTM will show the requirements coverage in terms of the number of test cases, design status, and execution status. It will also show the UAT status for a specific test case. With all this information at your fingertips, your team will be able to analyze changes in requirements and make informed product development decisions on the fly.  And because traceability links artifacts across the development lifecycle, it helps teams identify and resolve issues before they become problems. It can also help avoid the pressure of an audit. 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Deviation: Add a sub-column for any issues.  Requirements traceability matrix example Here is a basic requirements traceability matrix example, including a description of the requirements, their business justification, and the status of the task.   How to create a requirements traceability matrix in Wrike The matrix should be created early in the project life cycle to ensure it is up-to-date and incorporates all the details necessary for the project to be successful. A project management tool like Wrike is perfect for tracking, organizing, and assessing every last rule.  First, gather your requirements list. Add them as individual projects in Wrike. Assign a due date, priority level, and set of corresponding tasks needed to achieve compliance to each one.  Next, each requirement must have a unique and clearly defined purpose. 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Difference between business model, business plan, business case

The business model

The business plan, the business case, the chronological order.

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How to Write a Business Case (+ Free Template and Example)

Table of Contents

Let’s say you are a project manager — and you notice the communication tool your team is using is outdated and difficult to use. 

It frequently causes issues in communication — team members don’t always receive meeting invites, messages get lost, you can’t save important information without writing it down somewhere separately, etc.

You discovered a new communication tool that you think would be great to switch to, but that would require the whole company to transition from one to the other. You can’t just suggest this to your superiors, without offering concrete evidence as to why the switch is necessary.

This is where a business case comes into play. It outlines why and how an endeavor or a project is worth undertaking. In this text, we will talk about:

• What a business case is,
• How it differs from similar documents,
• How to write and present a business case, 
• The Five Case Model for preparing a business case, and
• The key elements of a business case.

We will also provide you with a business case template you can use, and an example you can reference.

What is a business case?

As per the PMBOK 7th Edition , “ a business case is a value proposition for a proposed project that may include financial and nonfinancial benefits. ” 

On top of this, “ a business case can contain information about strategic alignment, assessment of risk exposure, economic feasibility study, return on investments, expected key performance measures, evaluations, and alternative approaches. ”

Basically, a business case is a document that acts as the summary of your project idea, providing the reasons it should be executed and focusing on the benefits it brings.

Writing one should be among the first steps to starting your project — as you will use it to gain the attention of the stakeholders and convince them to support your project. 

We’ll get into detail on writing it, but first — let’s clear up the difference between a business case and some terms it’s often confused with.

Business case vs. business plan

A business case and business plan seem similar at first glance — they both outline a project and can be used for stakeholder propositions. 

In reality, though, they are used for different things.

The main difference between the two is what they focus on. 

Business cases are created for endeavors within a business — projects, acquisitions, events — while business plans are typically used when starting a new business. 

A business plan will contain broader aspects of a business — like a mission statement or target market. Business cases are more specific, and they deal with an aspect of a business — be it an issue or an opportunity.

💡 Plaky Pro Tip

You can find examples of how to write a business plan in our guides on starting a business in different US states:

• How to start a business in Connecticut
• How to start a business in Arizona
• How to start a business in Alabama
• How to start a business in Arkansas

Business case vs. project plan

A business case can also be confused with a project plan . However, a business case should justify why a project should exist. Only after a project is approved, post business case review, a project plan is created.

Where a business case will speak on how a project should look, a project plan will determine how it will look. Meaning, business cases are broader and more theoretical. Project plans need to be exact, as they will serve as guidelines for all project team members .

Business case vs project charter

The main difference between a business case and a project charter lies in their similarities — a business case is used to justify a project’s existence, while a project charter is used to authorize its execution. Again, a business case is created before the project charter.

The second difference between the two is in how concrete they are. A business case suggests project managers, while the project charter authorizes them. Essentially, the project charter makes the final calls on how things should be done. 

The same goes for the project scope — while a business case can suggest the schedule and budget of a project, the project charter will make the final decision.

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How to complete a business case in 3 steps

The business case is one of the most important documents to create for your project. Therefore, you should approach the process of making one with utmost care and attention.

For ease of reference, this process can be separated into the following steps:

• Do your research,
• Write incrementally, and
• Present your business case.

Step #1: Do your research

Rushing into things blindly will practically always result in failure. So, before you begin writing a business case, you must gather as much information as possible regarding the desired project.

It’s good to seek out information on matters you know little about. Consult experts in the fields required for your project. 

For example, if you are creating an app to help tourists experience lesser-known landmarks, you want to consult both with IT experts and tourism experts for the appropriate locations.

Now, instead of relying on data you’re unsure of, you have concrete, confirmed information that you can create your project around. 

Basically — you’re taking the guesswork out of the equation.

Step #2: Write incrementally

Now that you have all the information necessary for your project, it’s time to start writing your business case. 

This is where you’ll determine where certain pieces of information you’ve gathered will fit — which piece of your project they are necessary for.

Knowing how to utilize what you’ve learned is essential for this step. For example, if you’ve gathered information on what it would take to create your app, you should know the:

• Employee skill sets required, and
• The number of employees needed for your project.

Once you have all the information, try to present it in a concise but compelling manner.

It’s good to check in with your project stakeholders for updated information and change the business case incrementally with their input. After all, the stakeholders have your project’s best interest at heart, so their advice is to the project’s benefit.

You want to save the executive summary for last since it will be a recap of all you’ve written in your business case.

Step #3: Present your business case

Now that you’ve completed your business case, it’s time to convince your stakeholders that it’s an endeavor worth pursuing. 

Whether it’s external financiers or company seniors, you need to have important stakeholders on your side for the project to take off. 

Your business case might be incredible, but if you cannot sell the idea you’re pushing, it will be difficult to get any backing. So, organize a presentation for your stakeholders or try an elevator pitch — a quick way of presenting your key points.

If you’re inexperienced with presenting your ideas, practicing an elevator pitch is a great way to realize what the main selling points of your project are. 

An elevator pitch should last around 30 seconds — about as much as an elevator ride lasts — and include the main reasons someone should invest (be it their time, funds, or effort) into your project.

The Five Case Model for developing a business case

When writing your business case, you should not only be concerned with what the contents of your business case will look like but who will be reading that content as well.

There are many different kinds of stakeholders, and all of them will be looking for different appeals in your business case. To help you write one that can get positive remarks from all of them, you can use the Five Case model .

It suggests that a business case should be written from five different points of view, named:

• The strategic case,
• The economic case,
• The commercial case,
• The financial case, and
• The management case.

POV #1: The strategic case

The strategic case is written from the perspective of the business itself. It aims to show how a project will keep in line with the business objectives, goals, and vision — and benefit them.

The goal is to show how this project will positively impact the business — whether directly, through perhaps a product, or indirectly, through something like a PR stunt.

Check out the free strategic planning templates we offer in the post below:

• 14 Free Strategic Planning Templates (2024)

POV #2: The economic case

The economic case is written to show how the project brings social value, including environmental effects. The most important part of the economic case is the options analysis, which we will touch on in the next segment.

Not surprisingly, you want to focus on the economic case if you are making a project that will interact with the public. 

POV #3: The commercial case

The commercial case is written to show the commercial strategy and cost-effective procurement of project resources . It shows that you have a good understanding of the marketplace by assessing supply options.

You’ll need to keep updated on costs, the resources you’ll need, as well as any risks that might come when acquiring them. 

POV #4: The financial case

The financial case, in essence, wants to answer the question — can we afford it? It speaks on the funding of the project and the support of stakeholders and customers.

For the financial case, you need a thorough understanding of the capital, revenue, and whole-life costs of your project. You also need to address any possible gaps in funding that might arise during the course of the project.

POV #5: The management case

The management case is written to show the delivery, monitoring, and evaluation of the project. You need to assure your stakeholders that your project will be managed with the best practices and that all timelines are set with appropriate goals assigned to them.

It mostly covers the project governance and risk management elements of the business case, which we will talk about soon.

7 Key elements of a business case

A business case can have many elements — there can be over 50 elements in a detailed document. 

However, we can divide and combine them into 7 key elements that should exist in every business case, namely:

• Executive summary 
• Financial assessment
• Business objectives
• Project options analysis
• Cost-benefit analysis
• Project governance
• Risk management

Let’s dive further into them and see what you should look into when writing each of these elements in your business case.

Element #1: Executive summary

You could view the executive summary as a retelling of the essence of the business case. It gathers all the most important information from the rest of the document in one place.

An executive summary should start with an introduction and answer the following questions:

• What issue does the project solve or what opportunity does it take advantage of? 
• What options exist to tackle this issue/opportunity?
• What option is the preferred solution?

Next, you want to present the research you went through to create this business case. Then, go through your recommended actions — the conclusion of your research. This is essentially where the bulk of your project expectancies go.

By the end, the reader of your executive summary should understand what they’re getting into for the rest of the document.

Element #2: Financial assessment

In the financial assessment, you want to predict the cash flows of your project. The first thing you want to show in this section is detailed cost estimates and risks.

You should produce cost estimates for different aspects of the project — for the app example, think UI design or marketing — and determine them at both the P50 and P90 levels of confidence. 

P50 means a cost estimate with a 50% probability of not exceeding it, and P90 means a 90% chance of the same. 

For example, you’re 50% sure that the UI design costs will not exceed $50k, but you’re 90% sure they won’t be over $70k.

Next, you want to present the following:

• Project funding analysis, 
• Development analysis (the cost of scoping a project),
• Staffing impact summary, and 
• Summary of costs for each project phase. 

Element #3: Business objectives

The business objective answers a simple question — why are you doing the project? 

Think back on what we described first in the executive summary. What opportunities or issues arose that require this project to exist?

How does this project relate to the current business strategy? You need to convince everyone reading that your project needs to happen. 

What are your project goals? Once you determine project goals, you can determine:

• Project scope,
• Project constraints , and
• Project deliverables .

Element #4: Project options analysis

Now that you’ve justified the reason your project should exist, it’s time to take on different options for its execution. 

This element is dedicated to analyzing the strengths, weaknesses, opportunities, and threats of each option — basically, doing a SWOT analysis for each of them. 

Then you want to shortlist the options by discarding the ones that don’t lead to the desired outcome. Finally, do a reassessment of the shortlisted options and discard options accordingly.

Take a look at the external stakeholder impact of each option. More specifically, you want to look at the nature and level of impacts, specify the negative ones, and propose how they should be managed and mitigated.

While this boils down to a risk analysis for each option, it’s broader and used to determine the overall risk of each option. A more detailed risk analysis, determining the weight of specific risks and building contingency plans, comes later.

The project that comes out of this will be the preferred option for tackling the issue or opportunity described, which will be used as a reference when the actual project is executed. Finally, determine target outcomes for the reference project, measured with project KPIs . The targets must be realistic and measurable, yet challenging.

Element #5: Cost-benefit analysis

A cost-benefit analysis is used to prove that your project is worth doing from a business point of view. It proves that the benefits of doing a project are greater than the costs, thus justifying the project.

The cost-benefit analysis is done in 4 steps:

• Establish a framework — in this step, ask yourself what the measurement of your project’s success is (hint — take a look at the KPIs you’ve determined) and make sure both costs and benefits are measurable.
• Analyze costs and benefits — measure the costs and benefits of your project separately. Some are obvious — material or employee costs — but some are more elusive. If you are using an owned facility to house the project in, you are not spending any money for rent, per se — but that facility’s worth is being directed towards your project, so it’s an indirect cost.
• Establish a value for the costs and benefits — to compare the costs and benefits, they must share an equal “value unit”. Traditionally, monetary currencies are used, but you can be more creative if the situation calls for it. Intangible costs and benefits can be difficult to place a specific value on, but not impossible to achieve still.
• Compare the value of the costs and benefits — compare the sums of both the costs and benefits of your project. If the benefits outweigh your costs, your business case is good to go. If it’s the opposite, maybe you should revise the option you chose in the previous element.

Element #6: Project governance

Who will do what in your project? This is the question you want to answer in the project governance element of your business case. A typical hierarchy is set as:

• Responsible minister,
• The project control group,
• Project sponsor, and lastly,
• Project team.

Next, you want to analyze communications. In essence, how and how frequently will you communicate with certain stakeholders? 

You can use:

• Progress reports for superiors, 
• Team meetings for team members as internal stakeholders, or 
• Even social media for communication with customers as external stakeholders.

If you want to know more about the importance of communication in a project, check out this article:

• Why is communication important in project management?

Element #7: Risk management

Lastly, an element you mustn’t underestimate is risk management . Risk assessment is so vital to every project that it’s done while writing a business case, so even before the project is approved.

Risks are analyzed through 2 criteria — likelihood, and impact.

By likelihood, they can be: 

• Almost certain,
• Possible, and 

By impact, they can be: 

• Major, and 
• Catastrophic.

These criteria are used to create a risk matrix, determine the categories of risks, and make us aware of how urgent action is. Safe to say, if a risk is both catastrophic in impact and almost certain in likelihood, action on it is prioritized over any other.

You can vary these parameters of likelihood and severity to keep your analysis flexible, as seen here:

After all the risks have been identified, you want to construct a risk management plan , outlining all risks and their categories, as well as figuring out contingency plans for all of them.

If you want to learn more about managing risk in your projects, check out this guide:

• What is risk in project management?

Business case template + example

Knowing the steps to make a business case, however, does not properly explain what a business case looks like. 

A business case can be very detailed — the sheer number of points in it could be as long as an academic paper. 

But, we’ve created a business case template with 7 of the most important points it should have:

•  Executive summary
• Cost benefit analysis

🔽 Get the free business case template here

A filled-out business plan template can be extensive, spanning many pages of documentation. So, to give you an idea of what you should be writing about in a specific situation — we have filled in a business case template with the thought process that will come into writing each element:

Project title: Poetry Night event

Start date: 10/5/2023

Project manager: William Cambridge

Contact info: [email protected]

Executive summary: Reasoning for a poetry night might come from doing a poll, showing that the local area has no such events, yet the populace shows a good number of aspiring writers and poets.

Financial assessment: Cost estimates for this project may vary — renting space may be mandatory, and you might want catering for the event. Both of these may vary in cost depending on the number of attendees, so for your P90 analysis you should take a look at the poll results to estimate the maximum number of guests.

Business objectives: This project is done for public benefit, but can also serve to boost the PR of an organization. The project goals might be viewed through the attendees’ satisfaction, a boost in your organization’s online presence, or a rise in the popularity of a poet you were trying to promote with the event.

Project options analysis: This section would be dedicated to analyzing the different kinds of executions of the poetry night. Should it be in public, or in a closed rented space? Should there be light music in the background, and would it be beneficial to the event if the music was live? If you’re unsure of the answer — consult with stakeholders. In this case, you could do another poll.

Cost benefit analysis: The benefits of this project will largely be intangible — the rise in your organization’s popularity or the satisfaction of attendees would be difficult to quantify with dollar signs. However, there might be tangible benefits to find — if your organization offers a product or service, is there an expected rise in procurement after the project’s completion?

Project governance: Who will be in charge of the organization of the project? Who will be the sponsor? Who will tend to the catering? Who will be the presenter, and whose poetry will be presented? Answering these questions gives us project governance in this example.

Risk management: Is there a possibility that very few people will show up? Is there a possibility that the vendor of the rented space or the catering cancels last minute? In that case, is there a backup you can use and how can you notify all attendees of the change effectively?

Conclusion: Use a business case to pitch your ideas correctly 

By now, you should be aware that just having an idea usually isn’t enough to make someone want to support it. Analyzing it, justifying it, and creating a detailed business case around it are the essence of selling an idea to superiors or potential investors.

Always start with the idea itself — the best way to bring someone closer to it is to explain how you came up with it in the first place. Be sure to compare with alternatives, and show why your case is the one to go with.

A business case is a great tool to facilitate growth, whether it be small or large in scale. 

✉️ Do you have experience with writing business cases and have additional advice on the subject? If yes, write to us at [email protected] and we may include your advice in this or future articles.

Luka Bogavac is a project management author and researcher who focuses on making project management topics approachable and informative. Experienced in entrepreneurial projects, education, and writing, he aims to make articles his younger self would appreciate. During free time, he enjoys hiking trips, or staying indoors with a good film.

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The Business Plan: Making Strategy Work How to Plan the Route to Strategic Objectives in 7 Steps

Business Encyclopedia ISBN 978-1-929500-10-9  Copyright © MMXXIV Solution Matrix Ltd

Building the Business Plan How to Plan the Route to Strategic Objectives

Business Encyclopedia ISBN 978-1-929500-10-9 Copyright © MMXXIV Solution Matrix Ltd

What is a Business Plan?

Financial accounting is about history—what has happened. By contrast, Business Plans look forward in time, to future financial performance and position.

Strictly speaking, the term Business Plan applies to any working plan for running a business for a given time. The "business" in view may be a profit-making company, a government organization, a non-profit organization, a group, or an individual. A business plan may also represent a product line, an individual product, a line of service products, or another part of a larger business entity. All engage in business planning.

The broad meaning above is correct, but organizations that practice formal business planning, and businesspeople who rely on the "business plan" for day-to-day guidance, usually have in mind a more helpful definition:

Define Business Plan

A Business Plan is a practical working plan for approaching critical objectives, maintaining budgetary discipline, and continuous tracking of operational performance, covering a specific time span.

A plan that serves these purposes qualifies as a "business plan" if the plan:

• Specifies clearly the entity whose business the plan represents.
• Names specific near-term business goals in concrete, measurable terms.
• Fixes the timeline for actions targeting these goals.
• Forecasts costs and incoming funds across the timeline

For companies in private industry, the heart of the business plan is a Business Model and Business Strategy which describe how and where the company expects to make and spend money. All other parts of the business plan stem from the model.

The Business Plan Looks Forward in Time

Accounting records are business history. They describe what has happened. By contrast, the business plan looks forward in time, describing what planners aim to achieve or expect to happen. Business plans usually look forward for one to three years to a "planning horizon," which moves forward periodically with plan reviews and updates.

Business plans for different organizations will differ somewhat in content and structure, but most are designed to address two fundamental kinds of questions:

• What will the business look like in one year? Two, or three years? That is, what will business performance look like and what will the financial position look like then?
• How does the organization bring about the desired performance and build a stable financial situation?

Founders and owners typically develop an initial business plan before startup. They build the plan anticipating using it as a tool for supporting their requests for investment capital or loans to start the business. Once the company is operating, the business plan becomes a living document, which management reviews and revises at least quarterly.

Explaining the Business Plan in Context

Following sections further describe and illustrate Business Plan concepts in context with concepts from business strategy and business case analysis, focusing on four themes:

• First, definition, purpose, and role of the Business Plan.
• Second, typical Business Plan structure and contents.
• Third, how to create a Business Plan in 7 Steps.
• Fourth, Comparing and contrasting the Business Plan with the Business Case.

Business Plan Purpose What Are the Primary Uses for the Business Plan?

The business plan typically serves quite a few different purposes including the following. An in-depth business plan:

Projects the Financial Future

The main item of interest in the business plan, for many people, is a picture of the financial future. The plan projects the future economic situation and financial performance of the company, for owners, investors, and potential investors.

Identifies and Measures Risks

An in-depth business plan Identifies and measures significant risks for the business. These are events that would lead to different financial situations and financial performance results. The document must therefore also present strategies for dealing with threats and managing risks. 

Describes the Business Model

The business plan defines and outlines the company's business model. The model shows where and how the company expects to spend money, bring in revenues and earn margins. And, the model includes a quantitative Pro-forma Income statement estimating gross margin, operating margin, and profit margin. 

Identifies Key Assumptions

A complete business plan Identifies critical assumptions and trends underlying future financial results for the company. These may include trends in business volume, market demand, competitors actions, or prices of goods and services crucial to the business. As a result, senior managers watch these trends closely and update the plan when they change.

Helps Prioritize Business Objectives

A complete business plan guides management in setting and prioritizing business objectives. The business plan thereby provides a basis for:

• Setting financial targets for financial goals.
• Setting targets for key performance indicators for nonfinancial objectives.
• Identifying contingencies and critical success factors critical for meeting objectives. 

Source for Budgeting

The business plan serves as the primary starting resource for developing budgets. The business plan serves as the primary starting resource for developing budgets. In this role, it is indispensable for budgetary work because it captures the company's forecasts for spending and incoming revenues.

Serves as a Resource for Business Case Analysis

The business plan is a critical resource for those building or evaluating business case analyses. Business Case Analysis is central for instance, for supporting capital acquisitions, investments, product or marketing decisions, and project proposals.

What Are Business Plan Contents? How Are Business Plans Structured?

The contents, structure, and emphasis in the business plan are designed to address purposes that are most important to management, owners, and investors.

Business Plan For a Startup Company

Founders of a business startup construct a business plan, intending to show potential investors or loan sources all of the following:

• The company's business prospects are good.
• Managers and Directors are competent.
• Officers and managers understand the company's products, markets, and competition.
• The company's strategy is sound.
• Planning is robust and realistic.
• Investors can expect a good return on their investment. 

Business Plan for an Established Company

A business plan for an established company that is performing well will emphasize the same points as the plan for a startup company, above. By contrast, the business plan for a poorly performing company poorly will try to make these points:

• Officers and managers understand the reasons for poor business performance. 
• Company leadership has a promising strategy for improving performance. One such approach, for instance, could be changing the business model.
• Officers and managers have the means and ability to implement an improvement plan.

Business Plan for Government and non-profit organizations

Business plans for government and non-profit organizations can be very similar to those for companies in private industry sell goods and services. The similarity is necessary because governments and non-profit organizations still must:

• Deliver services.
• Recognize they have a "market" and "customers, " These organizations, in other words, have a population to serve.
• Create and operate within spending budgets.
• Find ways to receive funds to cover expenses.

Create a Business Plan in 7 Steps How to Write the Business Plan for Achieving Strategic Objectives

The emphasis and order of business plan components can, of course, differ from business to business. Nevertheless, a business plan template or business plan model for most companies would almost certainly include at least some treatment of all of the following sections.

Step 1. Write High-Level Description of the Business

Describe the business of the company or organization and provides a brief history and status summary of the firm.

Step 2. Describe Products and Services

Describe what the organization sells or delivers. Include the company's value proposition. Also, include a strategy for continuing or evolving products/services to remain competitive and grow the business. This section may also include product, manufacturing, distribution, and service plans.

Step 3. Describe the Market.

Describe the market the business addresses (or the population served). The description should include the following:

Also, include marketing strategy and marketing plan.

Step 4. Describe the Business Location and Manner of Doing Business.

Describe the role physical location does or does not play in the business and the manner of selling. Also, describe how the firm delivers products and services. Such descriptions could refer to "brick and mortar" stores, internet sales, or mail order sales and delivery, for instance. And, finally, describe the role (if any) of a direct sales force.

Step 5. Describe Management and Governance.

Describe management organization and management levels, lines of reporting and accountability. Also, describe capabilities and professional experience and skills necessary for management.

6. Develop and Summarize Company Financial Information

Include the following:

• Pro-forma (projected future) financial accounting statements for several years or more into the future (Income statement, Balance sheet, statement of changes in financial position, and retained earnings statement).
• Expected sources of funds, e.g., invested capital, sales revenues, loans, and other funding sources,
• Cost structure and expected uses of funds.
• Working capital requirements and expected cash inflows/outflows.
• Business performance projections and financial position financial metrics (including investment metrics, such as return on assets, leverage metrics such as the debt/equities ratio, and profitability metrics such as operating margin and profit margin.

7. Explain the Firm's Business Strategy

Explain how the company defines and distinguishes itself from the competition and identify critical strategic objectives. For instance, explain how the firm expects to achieve industry-leading customer satisfaction. Or, show how the firm will successfully "brand" company products and services for design and quality leadership.

8. Build and Test The Quantitative Business Model

It is fair to say that the business model is the "heart" of the business plan. Or, more accurately, the business model is the framework for describing the business and projected results. Sections 1-7 above show how the company will build on that framework to achieve good results and what they will look in Pro-forma statements.

Business Plan vs. Business Case What Are the Differences? How Are They Related?

The business case is organized around an action or decision, to address business case questions like those given above. Those questions contrast with the focus of the business plan, which addresses similar issues about the organization (or about the business). The business plan address questions like these:

• What will the "business" look like in one year? In Three Years? That is, what will its financial position and business performance look like then?
• How does the business get to those results?
• What sales, margins, and revenues can we expect next year?
• How many years will it take this startup firm to become profitable?

Confusion sometimes arises about the differences between the business case and the business plan and the ways they complement each other.

In brief, a business plan (as it appears above) is "all about" the "business" (or the organization, or a part of the firm). The business case is designed to address questions about a single action or decision. 

Whereas the business plan asks what the business will look like, the business case asks: What will be the consequences (in business terms) if we take this or that action?  In contrast to the business plan questions above, the business case addresses issues like these:

Business cases are designed to answer questions like these about the consequences of an action or decision:

• What will be the financial consequences if we choose X or do Y?
• Are there critical nonfinancial outcomes can we expect in either case? 
• What will we need as a capital budget next year if we decide to buy the service vehicles instead of leasing them?
• Is the investment in new phone technology justified? Is there a positive ROI?

Business Case and Business Plan Compared

The table below summarizes and contrasts the essential differences between a business case and a business plan.

A business case can support a business plan by helping answer questions like this: "How will the action impact the organization's business performance?

A business plan can support a business case by helping case developers estimate costs and expenses, revenues, and expected changes in these areas.

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Business Case vs. Business Plan

A business case is a business-related concept that is both practical and profitable; while a business plan gives the details and elucidates the financial steps necessary to create or grow a successful business. Its purpose is to examine the business dynamics of a proposed project as part of the evaluation and selection process. It shows how the project along with its lifecycle is a complete business venture that will contribute to its results. Thus it also shows how the project will align with and support the strategy of the organization. Finally, it demonstrates how the project will contribute to the company’s economic value.

For example, you could make a business case for investing in billboard advertising for your motel. You would cite the success stories other motels have had from such advertising.

A business plan will do two very important things for you and your new business. First, it will be your guide to creating or growing your business. It will address every major aspect, especially those related to expenses and income over a period of time. Second, it will show you and your stakeholders, such as probable investors, the value or profitability of your idea and your approach.

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Thank, useful distinction. Gary

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The 7 Best Business Plan Examples (2024)

As an aspiring entrepreneur gearing up to start your own business , you likely know the importance of drafting a business plan. However, you might not be entirely sure where to begin or what specific details to include. That’s where examining business plan examples can be beneficial. Sample business plans serve as real-world templates to help you craft your own plan with confidence. They also provide insight into the key sections that make up a business plan, as well as demonstrate how to structure and present your ideas effectively.

Example business plan

To understand how to write a business plan, let’s study an example structured using a seven-part template. Here’s a quick overview of those parts:

• Executive summary: A quick overview of your business and the contents of your business plan.
• Company description: More info about your company, its goals and mission, and why you started it in the first place.
• Market analysis: Research about the market and industry your business will operate in, including a competitive analysis about the companies you’ll be up against.
• Products and services: A detailed description of what you’ll be selling to your customers.
• Marketing plan: A strategic outline of how you plan to market and promote your business before, during, and after your company launches into the market.
• Logistics and operations plan: An explanation of the systems, processes, and tools that are needed to run your business in the background.
• Financial plan: A map of your short-term (and even long-term) financial goals and the costs to run the business. If you’re looking for funding, this is the place to discuss your request and needs.

7 business plan examples (section by section)

In this section, you’ll find hypothetical and real-world examples of each aspect of a business plan to show you how the whole thing comes together. 

• Executive summary

Your executive summary offers a high-level overview of the rest of your business plan. You’ll want to include a brief description of your company, market research, competitor analysis, and financial information. 

In this free business plan template, the executive summary is three paragraphs and occupies nearly half the page:

• Company description

You might go more in-depth with your company description and include the following sections:

• Nature of the business. Mention the general category of business you fall under. Are you a manufacturer, wholesaler, or retailer of your products?
• Background information. Talk about your past experiences and skills, and how you’ve combined them to fill in the market. 
• Business structure. This section outlines how you registered your company —as a corporation, sole proprietorship, LLC, or other business type.
• Industry. Which business sector do you operate in? The answer might be technology, merchandising, or another industry.
• Team. Whether you’re the sole full-time employee of your business or you have contractors to support your daily workflow, this is your chance to put them under the spotlight.

You can also repurpose your company description elsewhere, like on your About page, Instagram page, or other properties that ask for a boilerplate description of your business. Hair extensions brand Luxy Hair has a blurb on it’s About page that could easily be repurposed as a company description for its business plan. 

• Market analysis

Market analysis comprises research on product supply and demand, your target market, the competitive landscape, and industry trends. You might do a SWOT analysis to learn where you stand and identify market gaps that you could exploit to establish your footing. Here’s an example of a SWOT analysis for a hypothetical ecommerce business: 

You’ll also want to run a competitive analysis as part of the market analysis component of your business plan. This will show you who you’re up against and give you ideas on how to gain an edge over the competition. 

• Products and services

This part of your business plan describes your product or service, how it will be priced, and the ways it will compete against similar offerings in the market. Don’t go into too much detail here—a few lines are enough to introduce your item to the reader.

• Marketing plan

Potential investors will want to know how you’ll get the word out about your business. So it’s essential to build a marketing plan that highlights the promotion and customer acquisition strategies you’re planning to adopt. 

Most marketing plans focus on the four Ps: product, price, place, and promotion. However, it’s easier when you break it down by the different marketing channels . Mention how you intend to promote your business using blogs, email, social media, and word-of-mouth marketing. 

Here’s an example of a hypothetical marketing plan for a real estate website:

Logistics and operations

This section of your business plan provides information about your production, facilities, equipment, shipping and fulfillment, and inventory.

Financial plan

The financial plan (a.k.a. financial statement) offers a breakdown of your sales, revenue, expenses, profit, and other financial metrics. You’ll want to include all the numbers and concrete data to project your current and projected financial state.

In this business plan example, the financial statement for ecommerce brand Nature’s Candy includes forecasted revenue, expenses, and net profit in graphs.

It then goes deeper into the financials, citing:

• Funding needs
• Project cash-flow statement
• Project profit-and-loss statement
• Projected balance sheet

You can use Shopify’s financial plan template to create your own income statement, cash-flow statement, and balance sheet. 

Types of business plans (and what to write for each)

A one-page business plan is a pared down version of a standard business plan that’s easy for potential investors and partners to understand. You’ll want to include all of these sections, but make sure they’re abbreviated and summarized:

• Logistics and operations plan
• Financials 

A startup business plan is meant to secure outside funding for a new business. Typically, there’s a big focus on the financials, as well as other sections that help determine the viability of your business idea—market analysis, for example. Shopify has a great business plan template for startups that include all the below points:

• Market research: in depth
• Financials: in depth

Your internal business plan acts as the enforcer of your company’s vision. It reminds your team of the long-term objective and keeps them strategically aligned toward the same goal. Be sure to include:

• Market research

Feasibility 

A feasibility business plan is essentially a feasibility study that helps you evaluate whether your product or idea is worthy of a full business plan. Include the following sections:

A strategic (or growth) business plan lays out your long-term vision and goals. This means your predictions stretch further into the future, and you aim for greater growth and revenue. While crafting this document, you use all the parts of a usual business plan but add more to each one:

• Products and services: for launch and expansion
• Market analysis: detailed analysis
• Marketing plan: detailed strategy
• Logistics and operations plan: detailed plan
• Financials: detailed projections

Free business plan templates

Now that you’re familiar with what’s included and how to format a business plan, let’s go over a few templates you can fill out or draw inspiration from.

Bplans’ free business plan template

Bplans’ free business plan template focuses a lot on the financial side of running a business. It has many pages just for your financial plan and statements. Once you fill it out, you’ll see exactly where your business stands financially and what you need to do to keep it on track or make it better.

PandaDoc’s free business plan template

PandaDoc’s free business plan template is detailed and guides you through every section, so you don’t have to figure everything out on your own. Filling it out, you’ll grasp the ins and outs of your business and how each part fits together. It’s also handy because it connects to PandaDoc’s e-signature for easy signing, ideal for businesses with partners or a board.

Miro’s Business Model Canvas Template

Miro’s Business Model Canvas Template helps you map out the essentials of your business, like partnerships, core activities, and what makes you different. It’s a collaborative tool for you and your team to learn how everything in your business is linked.

Better business planning equals better business outcomes

Building a business plan is key to establishing a clear direction and strategy for your venture. With a solid plan in hand, you’ll know what steps to take for achieving each of your business goals. Kickstart your business planning and set yourself up for success with a defined roadmap—utilizing the sample business plans above to inform your approach.

Business plan FAQ

What are the 3 main points of a business plan.

• Concept. Explain what your business does and the main idea behind it. This is where you tell people what you plan to achieve with your business.
• Contents. Explain what you’re selling or offering. Point out who you’re selling to and who else is selling something similar. This part concerns your products or services, who will buy them, and who you’re up against.
• Cash flow. Explain how money will move in and out of your business. Discuss the money you need to start and keep the business going, the costs of running your business, and how much money you expect to make.

How do I write a simple business plan?

To create a simple business plan, start with an executive summary that details your business vision and objectives. Follow this with a concise description of your company’s structure, your market analysis, and information about your products or services. Conclude your plan with financial projections that outline your expected revenue, expenses, and profitability.

What is the best format to write a business plan?

The optimal format for a business plan arranges your plan in a clear and structured way, helping potential investors get a quick grasp of what your business is about and what you aim to achieve. Always start with a summary of your plan and finish with the financial details or any extra information at the end.

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14 Reasons Why You Need a Business Plan

10 min. read

Updated May 10, 2024

There’s no question that starting and running a business is hard work. But it’s also incredibly rewarding. And, one of the most important things you can do to increase your chances of success is to have a business plan.

A business plan is a foundational document that is essential for any company, no matter the size or age. From attracting potential investors to keeping your business on track—a business plan helps you achieve important milestones and grow in the right direction.

A business plan isn’t just a document you put together once when starting your business. It’s a living, breathing guide for existing businesses – one that business owners should revisit and update regularly.

Unfortunately, writing a business plan is often a daunting task for potential entrepreneurs. So, do you really need a business plan? Is it really worth the investment of time and resources? Can’t you just wing it and skip the whole planning process?

Good questions. Here’s every reason why you need a business plan.

• 1. Business planning is proven to help you grow 30 percent faster

Writing a business plan isn’t about producing a document that accurately predicts the future of your company. The  process  of writing your plan is what’s important. Writing your plan and reviewing it regularly gives you a better window into what you need to do to achieve your goals and succeed. 

You don’t have to just take our word for it. Studies have  proven that companies that plan  and review their results regularly grow 30 percent faster. Beyond faster growth, research also shows that companies that plan actually perform better. They’re less likely to become one of those woeful failure statistics, or experience  cash flow crises  that threaten to close them down. 

• 2. Planning is a necessary part of the fundraising process

One of the top reasons to have a business plan is to make it easier to raise money for your business. Without a business plan, it’s difficult to know how much money you need to raise, how you will spend the money once you raise it, and what your budget should be.

Investors want to know that you have a solid plan in place – that your business is headed in the right direction and that there is long-term potential in your venture. 

A business plan shows that your business is serious and that there are clearly defined steps on how it aims to become successful. It also demonstrates that you have the necessary competence to make that vision a reality. 

Investors, partners, and creditors will want to see detailed financial forecasts for your business that shows how you plan to grow and how you plan on spending their money. 

• 3. Having a business plan minimizes your risk

When you’re just starting out, there’s so much you don’t know—about your customers, your competition, and even about operations. 

As a business owner, you signed up for some of that uncertainty when you started your business, but there’s a lot you can  do to reduce your risk . Creating and reviewing your business plan regularly is a great way to uncover your weak spots—the flaws, gaps, and assumptions you’ve made—and develop contingency plans. 

Your business plan will also help you define budgets and revenue goals. And, if you’re not meeting your goals, you can quickly adjust spending plans and create more realistic budgets to keep your business healthy.

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• 4. Crafts a roadmap to achieve important milestones

A business plan is like a roadmap for your business. It helps you set, track and reach business milestones. 

For your plan to function in this way, your business plan should first outline your company’s short- and long-term goals. You can then fill in the specific steps necessary to reach those goals. This ensures that you measure your progress (or lack thereof) and make necessary adjustments along the way to stay on track while avoiding costly detours.

In fact, one of the top reasons why new businesses fail is due to bad business planning. Combine this with inflexibility and you have a recipe for disaster.

And planning is not just for startups. Established businesses benefit greatly from revisiting their business plan. It keeps them on track, even when the global market rapidly shifts as we’ve seen in recent years.

• 5. A plan helps you figure out if your idea can become a business

To turn your idea into reality, you need to accurately assess the feasibility of your business idea.

You need to verify:

• If there is a market for your product or service
• Who your target audience is
• How you will gain an edge over the current competition
• If your business can run profitably

A business plan forces you to take a step back and look at your business objectively, which makes it far easier to make tough decisions down the road. Additionally, a business plan helps you to identify risks and opportunities early on, providing you with the necessary time to come up with strategies to address them properly.

Finally, a business plan helps you work through the nuts and bolts of how your business will work financially and if it can become sustainable over time.

6. You’ll make big spending decisions with confidence

As your business grows, you’ll have to figure out when to hire new employees, when to expand to a new location, or whether you can afford a major purchase. 

These are always major spending decisions, and if you’re regularly reviewing the forecasts you mapped out in your business plan, you’re going to have better information to use to make your decisions.

7. You’re more likely to catch critical cash flow challenges early

The other side of those major spending decisions is understanding and monitoring your business’s cash flow. Your  cash flow statement  is one of the three key financial statements you’ll put together for your business plan. (The other two are your  balance sheet  and your  income statement  (P&L). 

Reviewing your cash flow statement regularly as part of your regular business plan review will help you see potential cash flow challenges earlier so you can take action to avoid a cash crisis where you can’t pay your bills. 

• 8. Position your brand against the competition

Competitors are one of the factors that you need to take into account when starting a business. Luckily, competitive research is an integral part of writing a business plan. It encourages you to ask questions like:

• What is your competition doing well? What are they doing poorly?
• What can you do to set yourself apart?
• What can you learn from them?
• How can you make your business stand out?
• What key business areas can you outcompete?
• How can you identify your target market?

Finding answers to these questions helps you solidify a strategic market position and identify ways to differentiate yourself. It also proves to potential investors that you’ve done your homework and understand how to compete. 

• 9. Determines financial needs and revenue models

A vital part of starting a business is understanding what your expenses will be and how you will generate revenue to cover those expenses. Creating a business plan helps you do just that while also defining ongoing financial needs to keep in mind. 

Without a business model, it’s difficult to know whether your business idea will generate revenue. By detailing how you plan to make money, you can effectively assess the viability and scalability of your business. 

Understanding this early on can help you avoid unnecessary risks and start with the confidence that your business is set up to succeed.

• 10. Helps you think through your marketing strategy

A business plan is a great way to document your marketing plan. This will ensure that all of your marketing activities are aligned with your overall goals. After all, a business can’t grow without customers and you’ll need a strategy for acquiring those customers. 

Your business plan should include information about your target market, your marketing strategy, and your marketing budget. Detail things like how you plan to attract and retain customers, acquire new leads, how the digital marketing funnel will work, etc. 

Having a documented marketing plan will help you to automate business operations, stay on track and ensure that you’re making the most of your marketing dollars.

• 11. Clarifies your vision and ensures everyone is on the same page

In order to create a successful business, you need a clear vision and a plan for how you’re going to achieve it. This is all detailed with your mission statement, which defines the purpose of your business, and your personnel plan, which outlines the roles and responsibilities of current and future employees. Together, they establish the long-term vision you have in mind and who will need to be involved to get there. 

Additionally, your business plan is a great tool for getting your team in sync. Through consistent plan reviews, you can easily get everyone in your company on the same page and direct your workforce toward tasks that truly move the needle.

• 12. Future-proof your business

A business plan helps you to evaluate your current situation and make realistic projections for the future.

This is an essential step in growing your business, and it’s one that’s often overlooked. When you have a business plan in place, it’s easier to identify opportunities and make informed decisions based on data.

Therefore, it requires you to outline goals, strategies, and tactics to help the organization stay focused on what’s important.

By regularly revisiting your business plan, especially when the global market changes, you’ll be better equipped to handle whatever challenges come your way, and pivot faster.

You’ll also be in a better position to seize opportunities as they arise.

Further Reading: 5 fundamental principles of business planning

• 13. Tracks your progress and measures success

An often overlooked purpose of a business plan is as a tool to define success metrics. A key part of writing your plan involves pulling together a viable financial plan. This includes financial statements such as your profit and loss, cash flow, balance sheet, and sales forecast.

By housing these financial metrics within your business plan, you suddenly have an easy way to relate your strategy to actual performance. You can track progress, measure results, and follow up on how the company is progressing. Without a plan, it’s almost impossible to gauge whether you’re on track or not.  

Additionally, by evaluating your successes and failures, you learn what works and what doesn’t and you can make necessary changes to your plan. In short, having a business plan gives you a framework for measuring your success. It also helps with building up a “lessons learned” knowledge database to avoid costly mistakes in the future.

• 14. Your business plan is an asset if you ever want to sell

Down the road, you might decide that you want to sell your business or position yourself for acquisition. Having a solid business plan is going to help you make the case for a higher valuation. Your business is likely to be worth more to a buyer if it’s easy for them to understand your business model, your target market, and your overall potential to grow and scale. 

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• Writing your business plan

By taking the time to create a business plan, you ensure that your business is heading in the right direction and that you have a roadmap to get there. We hope that this post has shown you just how important and valuable a business plan can be. While it may still seem daunting, the benefits far outweigh the time investment and learning curve for writing one. 

Luckily, you can write a plan in as little as 30 minutes. And there are plenty of excellent planning tools and business plan templates out there if you’re looking for more step-by-step guidance. Whatever it takes, write your plan and you’ll quickly see how useful it can be.

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

Table of Contents

• 6. You’ll make big spending decisions with confidence
• 7. You’re more likely to catch critical cash flow challenges early

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The Different Types of Business Plans

Free Business Plan Template

Ayush Jalan

• December 14, 2023

A business plan is a blueprint for your business. No matter if you’re running a startup or a well-established company, every entrepreneur needs to create a business plan. It helps you have a clear idea of your goals, and objectives, the execution of your strategies, and tracking progress.

Business plans come in all shapes and sizes.

You can create a plan based on your unique requirements and goals. Often, businesses require different types of plans for different situations and to tackle different problems. Having just one standard business plan is not enough.

A meticulously crafted business plan will efficiently serve its intended purpose . In fact, business plans are categorized based on the type of audience, the scope of the plan, and the purpose and format of the plan.

Understanding the basics of each type will help you pick out the right one for your business requirements. In this article, you will learn the different types of business plans and when and where they are used.

Based on Audience

Business plans are broadly categorized into two types based on the type of audience. They are:

• 1. Internal business plans: As the name suggests, an internal business plan is solely for the people inside the company. These can be specific to certain departments such as marketing, HR, production, etc. Internal business plans focus primarily on the company’s goals, and the personnel and processes aimed to achieve them.
• 2. External business plans: On the contrary, external business plans are intended for people outside the company, such as investors, banks, partners, etc. These plans usually contain detailed information about the company’s background, finances, and overall operation of the business.

Based on the Scope

Similarly, business plans are classified into two types based on their size and the depth of information they encompass. They are:

1. Standard business plans

A standard business plan is a bulky document that contains every detail of the company. Most external plans slide into this category as they often need to be detailed for presentation to people outside the company.

A standard business plan contains these sections:

• Executive summary
• Company Overview
• Problem analysis
• Market analysis
• Customer analysis
• Competitive analysis
• SWOT analysis
• Marketing Plan
• Operations plan
• Management team
• Finances plan
• Supporting documentation

A standard plan is usually presented to banks and any potential investors as it provides a complete view of the company, and future financial projections , and helps attain funding. But oftentimes, drafting a traditional business plan can be a tedious task as it takes a lot of time and effort.

2. Lean business plans

A lean plan is a condensed version of the standard business plan. It includes the highlights of a standard business plan and summaries of all the sections. It is a compact document that emphasizes achieving milestones and tracking finances.

Drafting a lean business plan is easier, faster, and is considered to be more efficient compared to a standard plan. It is flexible and can be revised effortlessly as many times as needed, which provides room for adjusting milestones, and improvising.

A lean business plan is apt for situations where you are uncertain about the process of creating a business plan, and it can be the essential first draft for your business. Everything in a lean business plan should be concise and represented in bullet points or short texts.

These are the elements that a lean business plan focuses on:

Based on purpose and format.

Business plans are further classified based on their purpose and format into seven types, they are:

1. One-page business plans

A one-page business plan can be described as an outline of a lean business plan . It is also called a business pitch or a quick summary. It is sometimes used to present a quick overview of your business to your vendors, partners, and employees and as a summary to banks and investors.

This encapsulates all the essential parts of a business plan on a single page. This summarizes the target market, business offering, main milestones, and essential sales forecast.

2. Startup business plans

A startup business plan can be defined as a lean plan with elements of a standard plan included to seek investors. The primary purpose of a startup plan is to put forth the steps required to get a business up and running. Later on, it should also serve as a plan that will help score investment.

The steps of establishing a new company include acquiring licenses and permits, setting up an office or store, getting equipment, and hiring and managing employees. All of these should be included in the startup business plan.

A startup plan should include information about the company, its products, and services, a detailed analysis of the industry, market, competition, SWOT, the bios of management, their responsibilities and roles, complete financial details and analysis, and projections of the usage of funding.

3. Strategic business plans

A strategic business plan is a lean business plan that contains details of the strategies and their implementation to achieve the goals and objectives of a company. These are internal plans that will focus entirely on the strategies with almost no inclusion of finances.

Conduct SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to begin an effective strategic business plan. This will help you better understand the factors that play a role in the decision-making process of a business.

A SWOT analysis will help you decide the strategies that will best suit your company and accomplish the goals, utilizing the available resources. Every strategic plan should contain these five elements:

• Mission statement
• Vision statement
• Factors that determine success
• Strategies to achieve goals
• Implementation process

4. Feasibility business plans

You require a feasible plan in case the business is stepping into a new market or introducing a new product or service. It is more a decision-making plan than a business plan as it focuses on two primary concerns:

• Determining the existence of a market
• Determining the profits of the initiative

A feasibility plan is a quick analysis of the practicality of a business idea.

This type of business plan usually excludes all the other sections and solely focuses on the scope of the initiative, its profitability, analysis of the market and competition, and acquiring the funding for it.

It is mostly crafted for internal management and ends with recommendations on whether the decision of entering a new market or introducing a new product or service is viable or not.

5. Operational business plans

An operational plan is a type of lean plan that focuses on the implementation process, achieving milestones, project deadlines, and the responsibilities of management, departments, and employees. It also focuses on the funding required to accomplish the milestones.

This business plan is called an annual plan, as businesses often use it to plan and specify milestones and their implementation for the coming year.

Some of the key elements every operational plan should contain are:

• Objectives for the operations
• Activities required to achieve objectives
• Resources required
• Staffing requirements
• Deadlines for implementation
• Tracking progress

6. Growth business plans

Draft a growth business plan when a company looks to expand its business into new markets. It is essentially a startup plan for a new segment of your business. This is also known as an expansion plan as it focuses on the long-term goals of a business.

This business plan can be both external and internal.

An external growth plan includes complete financial details and a funding request. On the other hand, an internal one contains details of the forecast of sales and expenses of the upcoming venture.

7. What-if business plan

Use a what-if plan when a business is taking a risky decision and needs a plan if the outcome turns unfavorable. This plan is usually less formal unless a funding request is included.

It entails a contingency plan that considers the worst-case scenarios.

This plan provides a glimpse into the possible outcomes of taking that risky decision and its effects on the company. It makes sense when taking a major business decision, merging with another company, raising the prices of products, etc. These are all the different types of business plans from which you can hand-pick the best fit for your company.

A Plan for Every Priority

Planning is essential for every business, without one a business is not likely to sustain itself in the long run. Although daunting sometimes, choosing the right plan for your business requirement can help you achieve your goals faster and with smart use of resources.

Every situation needs a unique approach to tackle effectively. Fortunately, there’s a plan for every purpose to help your business stand the test of time. Feel free to pick one that suits your business the best. Make sure to update it regularly.

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About the Author

Ayush is a writer with an academic background in business and marketing. Being a tech-enthusiast, he likes to keep a sharp eye on the latest tech gadgets and innovations. When he's not working, you can find him writing poetry, gaming, playing the ukulele, catching up with friends, and indulging in creative philosophies.

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What Is a QBR? (And How to Plan One Your Customers Will Appreciate)

QBRs create alignment with your customers and help you identify opportunities to increase your impact.

Kristen Handler

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Bringing in new business is a huge part of sales — but retaining customers is essential, too. Put yourself in your customer’s shoes. Next time your internal champion pushes to renew your product or service, will they be able to make a convincing business case for keeping you? Make sure the answer is “yes” by perfecting your quarterly business review (QBR) chops.

What is a QBR? It’s a chance to build that business case throughout the year — and presenting a memorable QBR is an indispensable skill.

My team’s QBRs have improved our customer relationships , putting the end goal of the partnership center stage rather than letting it get lost in the day-to-day minutia. Here’s the best of what we’ve learned.

What you’ll learn:

What is a qbr, why is a qbr important, the benefits of qbrs, how to prepare for a qbr, how to structure a qbr and what to include, how to follow up after a qbr, sales planning can be delightful. no, really..

Our Sales Planning solution keeps sellers on track with easy-to-build and easy-to-optimize sales plans.

A quarterly business review is just what the name implies: a meeting with customers every three months to review the partnership. You schedule this one-hour meeting to remind your customer why they went with you to begin with and what you planned to achieve together. You highlight your progress by sharing key metrics, playing up big wins, and talking about any challenges. You can also ask for feedback, plan how to improve your process, align on goals, and look at the coming quarter. Done right, QBRs deliver a critical message: You care about your customer’s success, and you deliver value throughout the entire year.

Wondering who you invite to a QBR? It’s a given that there will be representatives from both your company and your customer’s. Typically, we include the account manager, executive sponsor, and project manager. Because a QBR is a space for feedback, consider limiting the number of attendees from your team. That way, your customer will feel comfortable being transparent. 

Executive business review (EBR) vs. QBR

One more thing to clear up: You may have heard the term executive business review (EBR) and wonder how it relates to QBRs. EBRs are similar, but they’re typically higher level than QBRs and don’t always happen as often. Sometimes, the goal of an EBR is to inform and align while other times their purpose relates to a renewal decision. The relationship between QBRs and EBRs is not one-size-fits-all. Some executives only attend an annual EBR and ask for summarized versions of each QBR. So when you’re planning your QBRs, keep in mind that the information is likely to get passed up several levels beyond your immediate stakeholders. This is another reason to make sure the meeting content supports your customer’s business strategy and goals.

Either way, there’s still a chance executives you don’t normally see may join your QBR. If that happens, take advantage of the moment. Ask for their views of the partnership so you can better understand how to make the relationship a slam dunk from their perspective.

( Back to top )

QBRs yield business value on both sides. You get the chance to share your customer’s recent successes with their team while reaffirming their overarching business goals. When you do this several times throughout the year, you’ll be more aligned with your customer and identify opportunities to improve, creating a bigger impact. Bonus: QBRs also help you build the case for either a renewal or increasing their spend as you go, rather than at the end of a contract. When you wait to meet in person and only for renewal summaries, building a business case as partners over time just isn’t possible.

If you don’t hold QBRs, you’ll either have to scramble when asked for a surprise business review or prepare for an annual “year in review” meeting. In that case, you’ll need to comb through 12 months of data instead of three, and you’ll have more (and older) stories to tell in the same amount of time. I’ve been there, and it’s a challenge.  The fact is, most clients will have forgotten many of your successes by then, and it’s even possible that your stakeholders will have changed.

By holding regular QBRs, you create the following benefits for both sides:

Opportunities to collaborate with your primary customer contacts

This builds your relationship with them and helps you better understand their organization. As you involve them in the process of preparing for the QBR, you can get a better sense of their goals and what they think will matter most to their leaders.

Regular feedback keeps an open flow of communication

Holding several QBRs throughout the year encourages more thoughtful feedback than you’d get without these more formal check-ins.

Face time with customer executives

Use it to strengthen the ties between organizations at a higher level. And if you impress the higher-ups, you may even earn the opportunity to expand your business with their company.

A chance to strengthen working relationships

I like to think of my main point of contact (POC) as our customer champion. When you highlight your customer champion’s efforts to improve their organization’s outcomes and bottom line, you’re more likely to gain their trust and loyalty.

Ways to do better and deliver more value

QBRs give you focused time to ask for constructive feedback. When you get it, take it to heart and follow up with specific ways to improve even more.

A chance to collaborate on challenges

Sometimes the roadblocks to success come from the customer’s side. QBRs present the time, place, and neutral space to explain these challenges and plan how to address them in a collaborative way.

Time to highlight service trends and share key metrics

Even if you email regular reports to your customer champion, and even if they share them with their bosses, there’s no guarantee they all make the time to review them. During your QBR, you’ll have their undivided attention to share data and show progress toward goals.

Input on building your service story over four quarters

Collaborating with your customer champion on QBRs not only keeps you more aligned, but also gives you several chances throughout the year to understand and articulate what you achieve together.

A progress check-in on your most important objectives

Without a formal meeting on a regular basis, it can be easy for people to get lost in their day-to-day tasks, putting check-ins on the backburner and making it all too easy to start moving in different directions. QBRs gather key stakeholders for an update and a chance to make sure everyone is on the same page.

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I’ll be honest. The first quarter we delivered QBRs, I built them up to be a big, scary gauntlet I’d have to run. But they’re much more manageable than I thought. In fact, it’s been a great opportunity to highlight my customers’ projects, high-five over good work, and solicit customer feedback that helps us deliver what’s needed. Here are a few tips to help you do the same.

Get into the right mindset

Think of your QBR as an opportunity to speak to your successes. You also get to show your customer champion in a good light, so share the great work that both your team and your customer’s team finished during the last quarter. And remember: QBRs don’t come with the pressure of an annual renewal. While you can certainly focus on the good stuff, there’s no reason to shy away from challenges. During a QBR, those are just opportunities to improve. After all, there’s still plenty of time to get things going in the right direction.

Begin with a project plan

Get clarity on who will spearhead QBR preparation and which people will help them. At Red Argyle, the account manager is responsible for the QBR project plan. I work with a support team that helps gather metrics, craft the story, and create the presentation. I start by setting the agenda and areas of focus to keep things organized. I also use a checklist and shared calendar to ensure we are meeting deadlines. If you’re the one who owns the QBR, schedule time on your own calendar and on everyone else’s to work on it. Reach out to your services team early. Tell them what you need, when you need it, and how you’ll use it. That way, the QBR won’t sneak up on you.

Involve your customer champion

While preparing for your QBR, talk to your main customer contact. Ask them what story they want to tell and what their management will likely focus on. That way you can plan to share stories and metrics that align with their goals. Making them look good helps both of you.

Each QBR agenda may look similar, but that doesn’t mean there’s a one-size-fits-all plan. Ask your customer for input as you prepare. Tailor your QBR plan to focus on their priorities, including how they prefer to get information and what their upcoming needs are. I’ve found that some QBRs focus heavily on historic metrics and data while others focus most of their time on how to achieve important future outcomes. While the order and the amount of time you spend on each topic will probably differ from customer to customer, here are the key ingredients to include in your QBRs:

• History of the partnership : Briefly review business goals and realign on service level agreements (SLAs) and objectives.
• Data : Present key metrics. Compare trends with those from your last QBR.
• Insights : Use data to deliver new understanding. Tell a story that showcases success and identify areas for improvement.
• Customer stories : Share stories of your wins and how they’ve made an impact on customer success.
• Financial check-in : Cover budgeted versus actual spend. If you’re over or under budget, be honest about it. Just make sure you support that information with a good reason and have a plan for how to recalibrate.
• Feedback : Ask for feedback, including what might be helpful to include in the next QBR.
• A look ahead : Agree on a roadmap for next quarter and assign specific action items if needed.

One last note: You’re asking your customer for an hour. Depending on how many people attend the QBR, this easily adds up to several hours of work time. Plan a compelling meeting, so they don’t feel like that time was wasted. Stay out of the minutiae and instead take a higher-level, strategic view of your services. Make it clear how those services support your customer’s goals — and how you can improve them.

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• Email a recap to all attendees within 24 hours.
• Include high-level notes and takeaways, listing out related action items (e.g., Kacey will send an updated XYZ report by Thursday).
• Attach a copy of the slide deck.

I also highly recommend scheduling a debrief with your customer champion. It should take place within a week of the QBR so everything is still fresh in their mind. A debrief reinforces your partnership and gives you a chance to ask how things went from the customer’s perspective. You can also ask how their higher-ups felt about it.

Afterward, give your internal support team a recap of the debrief. If the reaction was positive, celebrate that with them and give credit where it’s due.

Highlight the victories and review the playbook

Great QBRs help you keep customer’s goals at the forefront of your work and build a solid partnership throughout the year. This is a great way to support your project stakeholders. They can more easily make the business case for continued (or increased) budget at renewal time, and they may even thank you for showing their work in a positive light. Well-planned, strategic QBRs are a win-win.

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Kristen Handler is a Senior Account Manager at Red Argyle, a team of curious people building intentional Salesforce solutions for some of the biggest brands in the world. She fell in love with Salesforce during her time as a Sales Operations Analyst, and is now joyful to be working with customers ... Read More directly in an account management role. She is 3x Salesforce Certified, a Trailhead Ranger, CSPO certified, and an active member of the Salesblazer Community.

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Chapter 11 - Bankruptcy Basics

This chapter of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.

A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy. Usually, the debtor remains “in possession,” has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money. A plan of reorganization is proposed, creditors whose rights are affected may vote on the plan, and the plan may be confirmed by the court if it gets the required votes and satisfies certain legal requirements.

How Chapter 11 Works

A chapter 11 case begins with the filing of a petition with the bankruptcy court serving the area where the debtor has a domicile, residence, or principal place of business. A petition may be a voluntary petition, which is filed by the debtor, or it may be an involuntary petition, which is filed by creditors that meet certain requirements. 11 U.S.C. §§ 301, 303. A voluntary petition must adhere to the format of Form B 101 of the Official Forms prescribed by the Judicial Conference of the United States. Unless the court orders otherwise, the debtor also must file with the court:

• schedules of assets and liabilities;
• a schedule of current income and expenditures;
• a schedule of executory contracts and unexpired leases; and
• a statement of financial affairs. Fed. R. Bankr. P. 1007(b).

If the debtor is an individual (or a married couple filing jointly), there are additional document filing requirements. Such debtors must file: a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling; evidence of payment from employers, if any, received 60 days before filing; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest the debtor has in federal or state qualified education or tuition accounts. 11 U.S.C. § 521. A married couple may file a joint petition or individual petitions. 11 U.S.C. § 302(a). ( Download the official forms .)

An individual cannot file under chapter 11 or any other chapter if, during the preceding 180 days, a prior bankruptcy petition was dismissed due to the debtor's willful failure to appear before the court or comply with orders of the court, or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d)-(e). In addition, no individual may be a debtor under chapter 11 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. 11 U.S.C. §§ 109, 111. There are exceptions in emergency situations or where the U.S. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to provide the required counseling. If a debt management plan is developed during required credit counseling, it must be filed with the court.

The courts are required to charge a $1,167 case filing fee and a $571 miscellaneous administrative fee. The fees must be paid to the clerk of the court upon filing or may, with the court's permission, be paid by individual debtors in installments. 28 U.S.C. § 1930(a); Fed. R. Bankr. P. 1006(b); Bankruptcy Court Miscellaneous Fee Schedule, Item 8. Fed. R. Bankr. P. 1006(b) limits to four the number of installments for the filing fee. The final installment must be paid not later than 120 days after filing the petition. For cause shown, the court may extend the time of any installment, provided that the last installment is paid not later than 180 days after the filing of the petition. Fed. R. Bankr. P. 1006(b). The $571 administrative fee may be paid in installments in the same manner as the filing fee. If a joint petition is filed, only one filing fee and one administrative fee are charged. Debtors should be aware that failure to pay these fees may result in dismissal of the case. 11 U.S.C. § 1112(b)(10).

The voluntary petition will include standard information concerning the debtor's name(s), social security number or tax identification number, residence, location of principal assets (if a business), the debtor's plan or intention to file a plan, and a request for relief under the appropriate chapter of the Bankruptcy Code. Upon filing a voluntary petition for relief under chapter 11 or, in an involuntary case, the entry of an order for relief, the debtor automatically assumes an additional identity as the "debtor in possession." 11 U.S.C. § 1101. The term refers to a debtor that keeps possession and control of its assets while undergoing a reorganization under chapter 11, without the appointment of a case trustee. A debtor will remain a debtor in possession until the debtor's plan of reorganization is confirmed, the debtor's case is dismissed or converted to chapter 7, or a chapter 11 trustee is appointed. The appointment or election of a trustee occurs only in a small number of cases. Generally, the debtor, as "debtor in possession," operates the business and performs many of the functions that a trustee performs in cases under other chapters. 11 U.S.C. § 1107(a).

Generally, a written disclosure statement and a plan of reorganization must be filed with the court. 11 U.S.C. §§ 1121, 1125. The disclosure statement is a document that must contain information concerning the assets, liabilities, and business affairs of the debtor sufficient to enable a creditor to make an informed judgment about the debtor's plan of reorganization. 11 U.S.C. § 1125. The information required is governed by judicial discretion and the circumstances of the case. The contents of the plan must include a classification of claims and must specify how each class of claims will be treated under the plan. 11 U.S.C. § 1123. Creditors whose claims are "impaired," i.e., those whose contractual rights are to be modified or who will be paid less than the full value of their claims under the plan, vote on the plan by ballot. 11 U.S.C. § 1126. After the disclosure statement is approved by the court and the ballots are collected and tallied, the court will conduct a confirmation hearing to determine whether to confirm the plan. 11 U.S.C. § 1128.

In the case of individuals, chapter 11 bears some similarities to chapter 13. For example, property of the estate for an individual debtor includes the debtor's earnings and property acquired by the debtor after filing until the case is closed, dismissed or converted; funding of the plan may be from the debtor's future earnings; and the plan cannot be confirmed over a creditor's objection without committing all of the debtor's disposable income over five years unless the plan pays the claim in full, with interest, over a shorter period of time. 11 U.S.C. §§ 1115, 1123(a)(8), 1129(a)(15).

The Chapter 11 Debtor in Possession

Chapter 11 is typically used to reorganize a business, which may be a corporation, sole proprietorship, or partnership. A corporation exists separate and apart from its owners, the stockholders. The chapter 11 bankruptcy case of a corporation (corporation as debtor) does not put the personal assets of the stockholders at risk other than the value of their investment in the company's stock. A sole proprietorship (owner as debtor), on the other hand, does not have an identity separate and distinct from its owner(s). Accordingly, a bankruptcy case involving a sole proprietorship includes both the business and personal assets of the owners-debtors. Like a corporation, a partnership exists separate and apart from its partners. In a partnership bankruptcy case (partnership as debtor), however, the partners' personal assets may, in some cases, be used to pay creditors in the bankruptcy case or the partners, themselves, may be forced to file for bankruptcy protection.

Section 1107 of the Bankruptcy Code places the debtor in possession in the position of a fiduciary, with the rights and powers of a chapter 11 trustee, and it requires the debtor to perform of all but the investigative functions and duties of a trustee. These duties, set forth in the Bankruptcy Code and Federal Rules of Bankruptcy Procedure, include accounting for property, examining and objecting to claims, and filing informational reports as required by the court and the U.S. trustee or bankruptcy administrator (discussed below), such as monthly operating reports. 11 U.S.C. §§ 1106, 1107; Fed. R. Bankr. P. 2015(a). The debtor in possession also has many of the other powers and duties of a trustee, including the right, with the court's approval, to employ attorneys, accountants, appraisers, auctioneers, or other professional persons to assist the debtor during its bankruptcy case. Other responsibilities include filing tax returns and reports which are either necessary or ordered by the court after confirmation, such as a final accounting. The U.S. trustee is responsible for monitoring the compliance of the debtor in possession with the reporting requirements.

Railroad reorganizations have specific requirements under subchapter IV of chapter 11, which will not be addressed here. In addition, stock and commodity brokers are prohibited from filing under chapter 11 and are restricted to chapter 7. 11 U.S.C. § 109(d).

The Small Business Case and Small Business Debtors

The Bankruptcy Code allows small business debtors to file for relief under two different special categories of chapter 11 intended to streamline processes and reduce costs. The first, referred to as a small business case (by definition in 11 U.S.C. § 101(51C)), was created in 2005 by the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), and the second, referred to as subchapter V, was created in 2019 by the Small Business Reorganization Act (SBRA). A debtor may elect either of these two options based on certain eligibility criteria. Both small business and subchapter V cases are treated differently than a traditional chapter 11 case primarily due to accelerated deadlines and the speed with which the plan is confirmed. The two types of cases have different debt limits, defined as the total amount of noncontingent liquidated secured and unsecured debt at the time the debtor files their bankruptcy case.

In order to file a small business case, the debtor must be engaged in commercial or business activities (other than primarily owning or operating a single piece of real property) with total secured and unsecured debts of $3,024,725 or less, not less than 50 percent of which arose from the commercial or business activities of the debtor. In order to file a subchapter V case, the debtor must be engaged in commercial or business activities (other than primarily owning or operating a single piece of real property) with combined total secured and unsecured debts of $7,500,000 or less, not less than 50 percent of which arose from the commercial or business activities of the debtor. For both types of small business cases the combined total of secured and unsecured debts must be owed as of the date of filing for bankruptcy relief.

In addition to accelerated deadlines and faster plan confirmation, small business and subchapter V cases have other key differences from ordinary chapter 11 cases:  a creditors’ committee is not automatically appointed and instead will only be appointed upon a showing of cause, 11 U.S.C. § 1102(a)(3), and the debtor or debtor in possession has additional duties, 11 U.S.C. § 1116.

In both small business cases and subchapter V cases, the debtor must, among other things, attach its most recent balance sheet, statement of operations, cash-flow statement and Federal income tax return to the petition, or provide a statement under oath explaining the absence of such documents, and must attend meetings scheduled by the court or the U.S. trustee through senior management personnel and counsel. The debtor must make ongoing filings with the court concerning its profitability and projected cash receipts and disbursements and must report whether it is in compliance with the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure and whether it has paid its taxes and filed its tax returns. 11 U.S.C. §§ 308, 1116, 1187.

In contrast to subchapter V and other chapter 11 debtors, debtors in small business cases are subject to additional oversight by the U.S. trustee. Early in the case, the debtor must attend an "initial debtor interview" with the U.S. trustee at which time the U.S. trustee will evaluate the debtor's viability, inquire about the debtor's business plan, and explain certain debtor obligations including the debtor's responsibility to file various reports. 28 U.S.C. § 586(a)(7). The U.S. trustee will also monitor the activities of the debtor during the case to identify as promptly as possible whether the debtor will be unable to confirm a plan.

In a subchapter V case, a trustee will be appointed to administer the debtor’s estate and oversee its reorganization. The trustee’s role in a subchapter V case is similar to that of a chapter 12 or 13 trustee:  facilitating the development of and overseeing the debtor’s plan of reorganization; appearing at major hearings; investigate the debtor’s conduct, assets and liabilities, financial condition, and the operation of the debtor’s business as a going concern; and ensuring that payments are made under the plan. 11 U.S.C. § 1183. The U.S. trustee has the same oversight responsibilities as ordinary chapter 11 cases. 28 U.S.C. § 586.

Because certain filing deadlines are different and extensions are more difficult to obtain, a small business case normally proceeds more quickly than other chapter 11 cases. In a small business case, only the debtor may file a plan during the first 180 days after the case is filed. 11 U.S.C. § 1121(e). This "exclusivity period" may be extended by the court, but only to 300 days, and only if the debtor demonstrates by a preponderance of the evidence that the court will confirm a plan within a reasonable period of time. In a subchapter V small business case, only the debtor may file a plan. 11 U.S.C. § 1189. In other chapter 11 cases, however, the court may extend the exclusivity period "for cause" up to 18 months. Another example of the faster pace of small business and subchapter V cases is that the debtor may not need to file a separate disclosure statement if the court determines that adequate information is contained in the plan. 11 U.S.C. §§ 1125(f), 1181, 1187. In a traditional chapter 11 case, the debtor must file a separate disclosure statement. 11 U.S.C. § 1125.

Subchapter V cases go beyond other chapter 11 and small business cases by allowing for relaxed plan confirmation requirements. Plans can be confirmed as long as they do not discriminate unfairly, are fair and equitable with respect to each class of claims or interests, provide that all projected disposable income of the debtor (or equivalent value) is paid into the plan for a three to five year period. 11 U.S.C. § 1191.

The Single Asset Real Estate Debtor

Single asset real estate debtors are subject to special provisions of the Bankruptcy Code. The term "single asset real estate" is defined as "a single property or project, other than residential real property with fewer than four residential units, which generates substantially all of the gross income of a debtor who is not a family farmer and on which no substantial business is being conducted by a debtor other than the business of operating the real property and activities incidental." 11 U.S.C. § 101(51B). The Bankruptcy Code provides circumstances under which creditors of a single asset real estate debtor may obtain relief from the automatic stay which are not available to creditors in ordinary bankruptcy cases. 11 U.S.C. § 362(d). On request of a creditor with a claim secured by the single asset real estate and after notice and a hearing, the court will grant relief from the automatic stay to the creditor unless the debtor files a feasible plan of reorganization or begins making interest payments to the creditor within 90 days from the date of the filing of the case, or within 30 days of the court's determination that the case is a single asset real estate case. The interest payments must be equal to the non-default contract interest rate on the value of the creditor's interest in the real estate. 11 U.S.C. § 362(d)(3).

Single asset real estate cases are ineligible for the small business or subchapter V election. 11 U.S.C. § 101(51D), 1182(1)(A).

The U.S. Trustee or Bankruptcy Administrator

The U.S. trustee plays a major role in monitoring the progress of a chapter 11 case and supervising its administration. The U.S. trustee is responsible for monitoring the debtor in possession's operation of the business and the submission of operating reports and fees. Additionally, the U.S. trustee monitors applications for compensation and reimbursement by professionals, plans and disclosure statements filed with the court, and creditors' committees. The U.S. trustee conducts a meeting of the creditors, often referred to as the "section 341 meeting," in a chapter 11 case. 11 U.S.C. § 341. The U.S. trustee and creditors may question the debtor under oath at the section 341 meeting concerning the debtor's acts, conduct, property, and the administration of the case.

The U.S. trustee also imposes certain requirements on the debtor in possession concerning matters such as reporting its monthly income and operating expenses, establishing new bank accounts, and paying current employee withholding and other taxes. By law, the debtor in possession must pay a quarterly fee to the U.S. trustee for each quarter of a year until the case is converted or dismissed. 28 U.S.C. § 1930(a)(6). The amount of the fee, which may range from $325 to $30,000, depends on the amount of the debtor's disbursements during each quarter. Should a debtor in possession fail to comply with the reporting requirements of the U.S. trustee or orders of the bankruptcy court, or fail to take the appropriate steps to bring the case to confirmation, the U.S. trustee may file a motion with the court to have the debtor's chapter 11 case converted to another chapter of the Bankruptcy Code or to have the case dismissed.

In North Carolina and Alabama, bankruptcy administrators perform similar functions that U.S. trustees perform in the remaining forty-eight states. The bankruptcy administrator program is administered by the Administrative Office of the United States Courts, while the U.S. trustee program is administered by the Department of Justice. For purposes of this publication, references to U.S. trustees are also applicable to bankruptcy administrators.

Creditors' Committees

Creditors' committees can play a major role in chapter 11 cases. The committee is appointed by the U.S. trustee and ordinarily consists of unsecured creditors who hold the seven largest unsecured claims against the debtor. 11 U.S.C. § 1102. Among other things, the committee: consults with the debtor in possession on administration of the case; investigates the debtor's conduct and operation of the business; and participates in formulating a plan. 11 U.S.C. § 1103. A creditors' committee may, with the court's approval, hire an attorney or other professionals to assist in the performance of the committee's duties. A creditors' committee can be an important safeguard to the proper management of the business by the debtor in possession.

Appointment or Election of a Case Trustee

Although the appointment of a case trustee is a rarity in a chapter 11 case, a party in interest or the U.S. trustee can request the appointment of a case trustee or examiner at any time prior to confirmation in a chapter 11 case. The court, on motion by a party in interest or the U.S. trustee and after notice and hearing, shall order the appointment of a case trustee for cause, including fraud, dishonesty, incompetence, or gross mismanagement, or if such an appointment is in the interest of creditors, any equity security holders, and other interests of the estate. 11 U.S.C. § 1104(a). Moreover, the U.S. trustee is required to move for appointment of a trustee if there are reasonable grounds to believe that any of the parties in control of the debtor "participated in actual fraud, dishonesty or criminal conduct in the management of the debtor or the debtor's financial reporting." 11 U.S.C. § 1104(e). The trustee is appointed by the U.S. trustee, after consultation with parties in interest and subject to the court's approval. Fed. R. Bankr. P. 2007.1. Alternatively, a trustee in a case may be elected if a party in interest requests the election of a trustee within 30 days after the court orders the appointment of a trustee. In that instance, the U.S. trustee convenes a meeting of creditors for the purpose of electing a person to serve as trustee in the case. 11 U.S.C. § 1104(b).

The case trustee is responsible for management of the property of the estate, operation of the debtor's business, and, if appropriate, the filing of a plan of reorganization. Section 1106 of the Bankruptcy Code requires the trustee to file a plan "as soon as practicable" or, alternatively, to file a report explaining why a plan will not be filed or to recommend that the case be converted to another chapter or dismissed. 11 U.S.C. § 1106(a)(5).

Upon the request of a party in interest or the U.S. trustee, the court may terminate the trustee's appointment and restore the debtor in possession to management of bankruptcy estate at any time before confirmation.11 U.S.C. § 1105.

As discussed above, a trustee is appointed in each subchapter V case. 11 U.S.C. § 1183.

The Role of an Examiner

The appointment of an examiner in a chapter 11 case is rare. The role of an examiner is generally more limited than that of a trustee. The examiner is authorized to perform the investigatory functions of the trustee and is required to file a statement of any investigation conducted. If ordered to do so by the court, however, an examiner may carry out any other duties of a trustee that the court orders the debtor in possession not to perform. 11 U.S.C. § 1106. Each court has the authority to determine the duties of an examiner in each particular case. In some cases, the examiner may file a plan of reorganization, negotiate or help the parties negotiate, or review the debtor's schedules to determine whether some of the claims are improperly categorized. Sometimes, the examiner may be directed to determine if objections to any proofs of claim should be filed or whether causes of action have sufficient merit so that further legal action should be taken. The examiner may not subsequently serve as a trustee in the case. 11 U.S.C. § 321.

Examiners may not be appointed in subchapter V cases. 11 U.S.C. § 1181(a) (making section 1106 inapplicable in subchapter V cases).

The Automatic Stay

The automatic stay provides a period of time in which all judgments, collection activities, foreclosures, and repossessions of property are suspended and may not be pursued by the creditors on any debt or claim that arose before the filing of the bankruptcy petition. As with cases under other chapters of the Bankruptcy Code, a stay of creditor actions against the chapter 11 debtor automatically goes into effect when the bankruptcy petition is filed. 11 U.S.C. § 362(a). The filing of a petition, however, does not operate as a stay for certain types of actions listed under 11 U.S.C. § 362(b). The stay provides a breathing spell for the debtor, during which negotiations can take place to try to resolve the difficulties in the debtor's financial situation.

Under specific circumstances, the secured creditor can obtain an order from the court granting relief from the automatic stay. For example, when the debtor has no equity in the property and the property is not necessary for an effective reorganization, the secured creditor can seek an order of the court lifting the stay to permit the creditor to foreclose on the property, sell it, and apply the proceeds to the debt. 11 U.S.C. § 362(d).

The Bankruptcy Code permits applications for fees to be made by certain professionals during the case. Thus, a trustee, a debtor's attorney, or any professional person appointed by the court may apply to the court at intervals of 120 days for interim compensation and reimbursement payments. In very large cases with extensive legal work, the court may permit more frequent applications. Although professional fees may be paid if authorized by the court, the debtor cannot make payments to professional creditors on prepetition obligations, i.e., obligations which arose before the filing of the bankruptcy petition. The ordinary expenses of the ongoing business, however, continue to be paid.

Who Can File a Plan

The debtor (except for a "small business debtor") has a 120-day period during which it has an exclusive right to file a plan. 11 U.S.C. § 1121(b). This exclusivity period may be extended or reduced by the court. But in no event may the exclusivity period, including all extensions, be longer than 18 months. 11 U.S.C. § 1121(d). After the exclusivity period has expired, a creditor or the case trustee may file a competing plan. The U.S. trustee may not file a plan. 11 U.S.C. § 307.

A chapter 11 case may continue for many years unless the court, the U.S. trustee, the committee, or another party in interest acts to ensure the case's timely resolution. The creditors' right to file a competing plan provides incentive for the debtor to file a plan within the exclusivity period and acts as a check on excessive delay in the case.

Only the debtor may file a plan in a subchapter V case. 11 U.S.C. § 1189.

Avoidable Transfers

The debtor in possession or the trustee, as the case may be, has what are called "avoiding" powers. These powers may be used to undo a transfer of money or property made during a certain period of time before the filing of the bankruptcy petition. By avoiding a particular transfer of property, the debtor in possession can cancel the transaction and force the return or "disgorgement" of the payments or property, which then are available to pay all creditors. Generally, and subject to various defenses, the power to avoid transfers is effective against transfers made by the debtor within 90 days before filing the petition. But transfers to "insiders" (i.e., relatives, general partners, and directors or officers of the debtor) made up to a year before filing may be avoided. 11 U.S.C. §§ 101(31), 101(54), 547, 548. In addition, under 11 U.S.C. § 544, the trustee is authorized to avoid transfers under applicable state law, which often provides for longer time periods. Avoiding powers prevent unfair prepetition payments to one creditor at the expense of all other creditors.

Cash Collateral, Adequate Protection, and Operating Capital

Although the preparation, confirmation, and implementation of a plan of reorganization is at the heart of a chapter 11 case, other issues may arise that must be addressed by the debtor in possession. The debtor in possession may use, sell, or lease property of the estate in the ordinary course of its business, without prior approval, unless the court orders otherwise. 11 U.S.C. § 363(c). If the intended sale or use is outside the ordinary course of its business, the debtor must obtain permission from the court.

A debtor in possession may not use "cash collateral" without the consent of the secured party or authorization by the court, which must first examine whether the interest of the secured party is adequately protected. 11 U.S.C. § 363. Section 363 defines "cash collateral" as cash, negotiable instruments, documents of title, securities, deposit accounts, or other cash equivalents, whenever acquired, in which the estate and an entity other than the estate have an interest. It includes the proceeds, products, offspring, rents, or profits of property and the fees, charges, accounts or payments for the use or occupancy of rooms and other public facilities in hotels, motels, or other lodging properties subject to a creditor's security interest.

When "cash collateral" is used (spent), the secured creditors are entitled to receive additional protection under section 363 of the Bankruptcy Code. The debtor in possession must file a motion requesting an order from the court authorizing the use of the cash collateral. Pending consent of the secured creditor or court authorization for the debtor in possession's use of cash collateral, the debtor in possession must segregate and account for all cash collateral in its possession. 11 U.S.C. § 363(c)(4). A party with an interest in property being used by the debtor may request that the court prohibit or condition this use to the extent necessary to provide "adequate protection" to the creditor.

Adequate protection may be required to protect the value of the creditor's interest in the property being used by the debtor in possession. This is especially important when there is a decrease in value of the property. The debtor may make periodic or lump sum cash payments or provide an additional or replacement lien that will result in the creditor's property interest being adequately protected. 11 U.S.C. § 361.

When a chapter 11 debtor needs operating capital, it may be able to obtain it from a lender by giving the lender a court-approved "superpriority" over other unsecured creditors or a lien on property of the estate. 11 U.S.C. § 364.

Before confirmation of a plan, several activities may take place in a chapter 11 case. Continued operation of the debtor's business may lead to the filing of a number of contested motions. The most common are those seeking relief from the automatic stay, the use of cash collateral, or to obtain credit. There may also be litigation over executory (i.e., unfulfilled) contracts and unexpired leases and the assumption or rejection of those executory contracts and unexpired leases by the debtor in possession. 11 U.S.C. § 365. Delays in formulating, filing, and obtaining confirmation of a plan often prompt creditors to file motions for relief from stay, to convert the case to chapter 7, or to dismiss the case altogether.

Adversary Proceedings

Frequently, the debtor in possession will institute a lawsuit, known as an adversary proceeding, to recover money or property for the estate. Adversary proceedings may take the form of lien avoidance actions, actions to avoid preferences, actions to avoid fraudulent transfers, or actions to avoid post-petition transfers. These proceedings are governed by Part VII of the Federal Rules of Bankruptcy Procedure. At times, a creditors' committee may be authorized by the bankruptcy court to pursue these actions against insiders of the debtor if the plan provides for the committee to do so or if the debtor has refused a demand to do so. Creditors may also initiate adversary proceedings by filing complaints to determine the validity or priority of a lien, revoke an order confirming a plan, determine the dischargeability of a debt, obtain an injunction, or subordinate a claim of another creditor.

The Bankruptcy Code defines a claim as: (1) a right to payment; (2) or a right to an equitable remedy for a failure of performance if the breach gives rise to a right to payment. 11 U.S.C. § 101(5). Generally, any creditor whose claim is not scheduled (i.e., listed by the debtor on the debtor's schedules) or is scheduled as disputed, contingent, or unliquidated must file a proof of claim (and attach evidence documenting the claim) in order to be treated as a creditor for purposes of voting on the plan and distribution under it. Fed. R. Bankr. P. 3003(c)(2). But filing a proof of claim is not necessary if the creditor's claim is scheduled (but is not listed as disputed, contingent, or unliquidated by the debtor) because the debtor's schedules are deemed to constitute evidence of the validity and amount of those claims. 11 U.S.C. § 1111. If a scheduled creditor chooses to file a claim, a properly filed proof of claim supersedes any scheduling of that claim. Fed. R. Bankr. P. 3003(c)(4). It is the responsibility of the creditor to determine whether the claim is accurately listed on the debtor's schedules. The debtor must provide notification to those creditors whose names are added and whose claims are listed as a result of an amendment to the schedules. The notification also should advise such creditors of their right to file proofs of claim and that their failure to do so may prevent them from voting upon the debtor's plan of reorganization or participating in any distribution under that plan. When a debtor amends the schedule of liabilities to add a creditor or change the status of any claims to disputed, contingent, or unliquidated, the debtor must provide notice of the amendment to any entity affected. Fed. R. Bankr. P. 1009(a).

Equity Security Holders

An equity security holder is a holder of an equity security of the debtor. Examples of an equity security are a share in a corporation, an interest of a limited partner in a limited partnership, or a right to purchase, sell, or subscribe to a share, security, or interest of a share in a corporation or an interest in a limited partnership. 11 U.S.C. § 101(16), (17). An equity security holder may vote on the plan of reorganization and may file a proof of interest, rather than a proof of claim. A proof of interest is deemed filed for any interest that appears in the debtor's schedules, unless it is scheduled as disputed, contingent, or unliquidated. 11 U.S.C. § 1111. An equity security holder whose interest is not scheduled or is scheduled as disputed, contingent, or unliquidated must file a proof of interest in order to be treated as a creditor for purposes of voting on the plan and distribution under it. Fed. R. Bankr. P. 3003(c)(2). A properly filed proof of interest supersedes any scheduling of that interest. Fed. R. Bankr. P. 3003(c)(4). Generally, most of the provisions that apply to proofs of claim, as discussed above, are also applicable to proofs of interest.

Conversion or Dismissal

A debtor in a case under chapter 11 has a one-time absolute right to convert the chapter 11 case to a case under chapter 7 unless: (1) the debtor is not a debtor in possession; (2) the case originally was commenced as an involuntary case under chapter 11; or (3) the case was converted to a case under chapter 11 other than at the debtor's request. 11 U.S.C. § 1112(a). A debtor in a chapter 11 case does not have an absolute right to have the case dismissed upon request.

A party in interest may file a motion to dismiss or convert a chapter 11 case to a chapter 7 case "for cause." Generally, if cause is established after notice and hearing, the court must convert or dismiss the case (whichever is in the best interests of creditors and the estate) unless it specifically finds that the requested conversion or dismissal is not in the best interest of creditors and the estate. 11 U.S.C. § 1112(b). Alternatively, the court may decide that appointment of a chapter 11 trustee or an examiner is in the best interests of creditors and the estate. 11 U.S.C. § 1104(a)(3). Section 1112(b)(4) of the Bankruptcy Code sets forth numerous examples of cause that would support dismissal or conversion. For example, the moving party may establish cause by showing that there is substantial or continuing loss to the estate and the absence of a reasonable likelihood of rehabilitation; gross mismanagement of the estate; failure to maintain insurance that poses a risk to the estate or the public; or unauthorized use of cash collateral that is substantially harmful to a creditor.

Cause for dismissal or conversion also includes an unexcused failure to timely compliance with reporting and filing requirements; failure to attend the meeting of creditors or attend an examination without good cause; failure to timely provide information to the U.S. trustee; and failure to timely pay post-petition taxes or timely file post-petition returns Fed. R. Bankr. P. 2004. Additionally, failure to file a disclosure statement or to file and confirm a plan within the time fixed by the Bankruptcy Code or order of the court; inability to effectuate a plan; denial or revocation of confirmation; inability to consummate a confirmed plan represent "cause" for dismissal under the statute. In an individual case, failure of the debtor to pay post-petition domestic support obligations constitutes "cause" for dismissal or conversion.

Section 1112(c) of the Bankruptcy Code provides an important exception to the conversion process in a chapter 11 case. Under this provision, the court is prohibited from converting a case involving a farmer or charitable institution to a liquidation case under chapter 7 unless the debt or requests the conversion.

The Disclosure Statement

Generally, the debtor (or any plan proponent) must file and get court approval of a written disclosure statement before there can be a vote on the plan of reorganization. The disclosure statement must provide "adequate information" concerning the affairs of the debtor to enable the holder of a claim or interest to make an informed judgment about the plan. 11 U.S.C. § 1125. In a small business case, however, the court may determine that the plan itself contains adequate information and that a separate disclosure statement is unnecessary. 11 U.S.C. § 1125(f). A disclosure statement is not required in a subchapter V case unless otherwise ordered by the court for cause. 11 U.S.C. § 1181(b). After the disclosure statement is filed, the court must hold a hearing to determine whether the disclosure statement should be approved. Acceptance or rejection of a plan usually cannot be solicited until the court has first approved the written disclosure statement. 11 U.S.C. § 1125(b). An exception to this rule exists if the initial solicitation of the party occurred before the bankruptcy filing, as would be the case in so-called "prepackaged" bankruptcy plans (i.e., where the debtor negotiates a plan with significant creditor constituencies before filing for bankruptcy). Continued post-filing solicitation of such parties is not prohibited. After the court approves the disclosure statement, the debtor or proponent of a plan can begin to solicit acceptances of the plan, and creditors may also solicit rejections of the plan.

Upon approval of a disclosure statement, the plan proponent must mail the following to the U.S. trustee and all creditors and equity security holders: (1) the plan, or a court approved summary of the plan; (2) the disclosure statement approved by the court; (3) notice of the time within which acceptances and rejections of the plan may be filed; and (4) such other information as the court may direct, including any opinion of the court approving the disclosure statement or a court-approved summary of the opinion. Fed. R. Bankr. P. 3017(d). In addition, the debtor must mail to the creditors and equity security holders entitled to vote on the plan or plans: (1) notice of the time fixed for filing objections; (2) notice of the date and time for the hearing on confirmation of the plan; and (3) a ballot for accepting or rejecting the plan and, if appropriate, a designation for the creditors to identify their preference among competing plans. Id. But in a small business case, if a disclosure statement is filed, the court may conditionally approve a disclosure statement subject to final approval after notice and a combined disclosure statement/plan confirmation hearing. 11 U.S.C. § 1125(f).

Acceptance of the Plan of Reorganization

As noted earlier, only the debtor may file a plan of reorganization during the first 120-day period after the petition is filed (or after entry of the order for relief, if an involuntary petition was filed). The court may grant extension of this exclusive period up to 18 months after the petition date. In addition, the debtor has 180 days after the petition date or entry of the order for relief to obtain acceptances of its plan. 11 U.S.C. § 1121. The court may extend (up to 20 months) or reduce this acceptance exclusive period for cause. 11 U.S.C. § 1121(d). In practice, debtors typically seek extensions of both the plan filing and plan acceptance deadlines at the same time so that any order sought from the court allows the debtor two months to seek acceptances after filing a plan before any competing plan can be filed.

If the exclusive period expires before the debtor has filed and obtained acceptance of a plan, other parties in interest in a case, such as the creditors' committee or a creditor, may file a plan. Such a plan may compete with a plan filed by another party in interest or by the debtor. If a trustee is appointed, the trustee must file a plan, a report explaining why the trustee will not file a plan, or a recommendation for conversion or dismissal of the case. 11 U.S.C. § 1106(a)(5). A proponent of a plan is subject to the same requirements as the debtor with respect to disclosure and solicitation.

In a chapter 11 case, a liquidating plan is permissible. Such a plan often allows the debtor in possession to liquidate the business under more economically advantageous circumstances than a chapter 7 liquidation. It also permits the creditors to take a more active role in fashioning the liquidation of the assets and the distribution of the proceeds than in a chapter 7 case.

Section 1123(a) of the Bankruptcy Code lists the mandatory provisions of a chapter 11 plan, and section 1123(b) lists the discretionary provisions. Section 1123(a)(1) provides that a chapter 11 plan must designate classes of claims and interests for treatment under the reorganization. Generally, a plan will classify claim holders as secured creditors, unsecured creditors entitled to priority, general unsecured creditors, and equity security holders.

Under section 1126(c) of the Bankruptcy Code, an entire class of claims is deemed to accept a plan if the plan is accepted by creditors that hold at least two-thirds in amount and more than one-half in number of the allowed claims in the class. Under section 1129(a)(10), if there are impaired classes of claims, the court cannot confirm a plan unless it has been accepted by at least one class of non-insiders who hold impaired claims (i.e., claims that are not going to be paid completely or in which some legal, equitable, or contractual right is altered). Moreover, under section 1126(f), holders of unimpaired claims are deemed to have accepted the plan.

Under section 1127(a) of the Bankruptcy Code, the plan proponent may modify the plan at any time before confirmation, but the plan as modified must meet all the requirements of chapter 11. When there is a proposed modification after balloting has been conducted, and the court finds after a hearing that the proposed modification does not adversely affect the treatment of any creditor who has not accepted the modification in writing, the modification is deemed to have been accepted by all creditors who previously accepted the plan. Fed. R. Bankr. P. 3019. If it is determined that the proposed modification does have an adverse effect on the claims of non-consenting creditors, then another balloting must take place.

Because more than one plan may be submitted to the creditors for approval, every proposed plan and modification must be dated and identified with the name of the entity or entities submitting the plan or modification. Fed. R. Bankr. P. 3016(b). When competing plans are presented that meet the requirements for confirmation, the court must consider the preferences of the creditors and equity security holders in determining which plan to confirm.

Any party in interest may file an objection to confirmation of a plan. The Bankruptcy Code requires the court, after notice, to hold a hearing on confirmation of a plan. If no objection to confirmation has been timely filed, the Bankruptcy Code allows the court to determine whether the plan has been proposed in good faith and according to law. Fed. R. Bankr. P. 3020(b)(2). Before confirmation can be granted, the court must be satisfied that there has been compliance with all the other requirements of confirmation set forth in section 1129 of the Bankruptcy Code, even in the absence of any objections. In order to confirm the plan, the court must find, among other things, that: (1) the plan is feasible; (2) it is proposed in good faith; and (3) the plan and the proponent of the plan are in compliance with the Bankruptcy Code. In order to satisfy the feasibility requirement, the court must find that confirmation of the plan is not likely to be followed by liquidation (unless the plan is a liquidating plan) or the need for further financial reorganization.

The Discharge

Section 1141(d)(1) generally provides that confirmation of a plan discharges a debtor from any debt that arose before the date of confirmation. After the plan is confirmed, the debtor is required to make plan payments and is bound by the provisions of the plan of reorganization. The confirmed plan creates new contractual rights, replacing or superseding pre-bankruptcy contracts.

There are, of course, exceptions to the general rule that an order confirming a plan operates as a discharge. Confirmation of a plan of reorganization discharges any type of debtor – corporation, partnership, or individual – from most types of prepetition debts. It does not, however, discharge an individual debtor from any debt made nondischargeable by section 523 of the Bankruptcy Code. (1) Moreover, except in limited circumstances, a discharge is not available to an individual debtor unless and until all payments have been made under the plan. 11 U.S.C. § 1141(d)(5). Confirmation does not discharge the debtor if the plan is a liquidation plan, as opposed to one of reorganization, unless the debtor is an individual. When the debtor is an individual, confirmation of a liquidation plan will result in a discharge (after plan payments are made) unless grounds would exist for denying the debtor a discharge if the case were proceeding under chapter 7 instead of chapter 11. 11 U.S.C. §§ 727(a), 1141(d).

Postconfirmation Modification of the Plan

At any time after confirmation and before "substantial consummation" of a plan, the proponent of a plan may modify the plan if the modified plan would meet certain Bankruptcy Code requirements. 11 U.S.C. § 1127(b), 1193(b). This should be distinguished from preconfirmation modification of the plan. A modified postconfirmation plan does not automatically become the plan. A modified postconfirmation plan in a chapter 11 case becomes the plan only "if circumstances warrant such modification" and the court, after notice and hearing, confirms the plan as modified. If the debtor is an individual, the plan may be modified postconfirmation upon the request of the debtor, the trustee, the U.S. trustee, or the holder of an allowed unsecured claim to make adjustments to payments due under the plan. 11 U.S.C. § 1127(e).

Postconfirmation Administration

Notwithstanding the entry of the confirmation order, the court has the authority to issue any other order necessary to administer the estate. Fed. R. Bankr. P. 3020(d). This authority would include the postconfirmation determination of objections to claims or adversary proceedings, which must be resolved before a plan can be fully consummated. Sections 1106(a)(7) and 1107(a) of the Bankruptcy Code require a debtor in possession or a trustee to report on the progress made in implementing a plan after confirmation. A chapter 11 trustee or debtor in possession has a number of responsibilities to perform after confirmation, including consummating the plan, reporting on the status of consummation, and applying for a final decree.

Revocation of the Confirmation Order

Revocation of the confirmation order is an undoing or cancellation of the confirmation of a plan. A request for revocation of confirmation, if made at all, must be made by a party in interest within 180 days of confirmation. The court, after notice and hearing, may revoke a confirmation order "if and only if the [confirmation] order was procured by fraud." 11 U.S.C. § 1144.

The Final Decree

• Debts not discharged include debts for alimony and child support, certain taxes, debts for certain educational benefit overpayments or loans made or guaranteed by a governmental unit, debts for willful and malicious injury by the debtor to another entity or to the property of another entity, debts for death or personal injury caused by the debtor's operation of a motor vehicle while the debtor was intoxicated from alcohol or other substances, and debts for certain criminal restitution orders.11 U.S.C. § 523(a). The debtor will continue to be liable for these types of debts to the extent that they are not paid in the chapter 11 case. Debts for money or property obtained by false pretenses, debts for fraud or defalcation while acting in a fiduciary capacity, and debts for willful and malicious injury by the debtor to another entity or to the property of another entity will be discharged unless a creditor timely files and prevails in an action to have such debts declared nondischargeable. 11 U.S.C. § 523(c); Fed. R. Bankr. P. 4007(c).

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Having a marketing plan can help you to:

• identify your target market and how your product or service can benefit it
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1. Analyse your market

Market research can help you to understand your strengths, weaknesses and the opportunities that you can take advantage of. Analysing your own business and your competition can help you identify where you're positioned in the market.

It’s important to analyse your competition to identify their strengths and weaknesses. This can help you refine your marketing strategy and what's unique about your business.

A strengths, weaknesses, opportunities and threats (SWOT) analysis can help you determine where your business fits within the market and your unique selling point. Use it to help identify what your business is doing well and how you can improve.

Identifying and understanding your customers is an essential part of your marketing plan. Not everyone is your potential buyer, so it’s important to have a clear understanding of your target market early on.

Identify your target market, competitors and potential customers .

2. Set your goals and objectives

Once you're clear about your business and its positioning, you can start thinking about what you want to achieve. Think about your main business goals, whether it's the size of your business, expansion plans or desired sales. Set specific, measurable, achievable, relevant and time bound (SMART) goals to increase your chances of success in achieving them.

3. Outline your marketing strategies

Once you’ve set some goals, consider what marketing activity, process or price will help you achieve them.

Try and choose marketing activities that suit your business and your customers. For example, if you want to target young adults, newspaper advertising may not be as effective as a social media campaign.

Choosing multiple activities that complement each other is a good way to help you get your message across. For example, if you're trying to establish a new product in the market, you may choose to advertise on the local radio, as well as setting up  social media channels  and introducing a low-cost pricing strategy for first-time buyers. When used together, these strategies complement each other and help you reach a broader market.

4. Set your marketing budget

Knowing how much you have to spend on marketing and how to spend it is critical to the success of your business. A marketing budget will ensure you accurately calculate your marketing campaign or advertising.

When developing your marketing budget, make sure you're only spending money on the activities that contribute to your current marketing goals. Advertising and promotion can be expensive. Make sure to pick options that will give you the best value while still reaching your target customers.

5. Keep your marketing plan up-to-date

It's important to evaluate your marketing activities. Analysing your results and being aware of new marketing trends is important to keeping your marketing plan up-to-date and reaching your business goals. You should tweak and change your plan as your business and market grow and change.

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7 Organizational Structure Types (With Examples)

Updated: May 29, 2024, 5:39pm

Table of Contents

What is an organizational structure, 4 common types of organizational structures, 3 alternative organizational structures, how to choose the best organizational structure, frequently asked questions (faqs).

Every company needs an organizational structure—whether they realize it or not. The organizational structure is how the company delegates roles, responsibilities, job functions, accountability and decision-making authority. The organizational structure often shows the “chain of command” and how information moves within the company. Having an organizational structure that aligns with your company’s goals and objectives is crucial. This article describes the various types of organizational structures, the benefits of creating one for your business and specific elements that should be included.

Employees want to understand their job responsibilities, whom they report to, what decisions they can and should make and how they interact with other people and teams within the company. An organizational structure creates this framework. Organizational structures can be centralized or decentralized, hierarchical or circular, flat or vertical.

Centralized vs. Decentralized

Many companies use the traditional model of a centralized organizational structure. With centralized leadership, there is a transparent chain of command and each role has well-defined responsibilities.

Conversely, with a decentralized organizational structure, teams have more autonomy to make decisions and there may be cross-collaboration between groups. Decentralized leadership can help companies remain agile and adapt to changing needs.

Hierarchical vs. Circular

A hierarchical organization structure is the pyramid-shaped organization chart many people are used to seeing. There is one role at the top of the pyramid and the chain of command moves down, with each level decreasing in responsibilities and authority.

On the other hand, a circular organization chart looks like concentric circles with company leadership in the center circle. Instead of information flowing down to the next “level,” information flows out to the next ring of management.

Vertical vs. Flat

A vertical organizational chart has a clear chain of command with a small group of leaders at the top—or in the center, in the case of a circular structure—and each subsequent tier has less authority and responsibility. As discussed below, functional, product-based, market-based and geographical organizational structures are vertical structures.

With a flat organization structure, a person may report to more than one person and there may be cross-department responsibilities and decision-making authority. The matrix organizational structure described below is an example of a flat structure.

Benefits of Creating an Organizational Structure

There are many benefits to creating an organizational structure that aligns with the company’s operations, goals and objectives. Clearly disseminating this information to employees:

• Provides accountability
• Clarifies expectations
• Documents criteria for promotion
• Designates decision-making authority
• Creates efficiency
• Fosters collaboration

Essential Elements of Clear Organizational Structure

Regardless of the special type of organizational structure you choose, it should have the following components:

• Chain of command
• Roles and responsibilities
• Scope of control
• Decision-making authority
• Departments or teams within the organization

Functional/Role-Based Structure

A functional—or role-based—structure is one of the most common organizational structures. This structure has centralized leadership and the vertical, hierarchical structure has clearly defined roles, job functions, chains of command and decision-making authority. A functional structure facilitates specialization, scalability and accountability. It also establishes clear expectations and has a well-defined chain of command. However, this structure runs the risk of being too confining and it can impede employee growth. It also has the potential for a lack of cross-department communication and collaboration.

Product- or Market-Based Structure

Along with the functional structure, the product- or market-based structure is hierarchical, vertical and centralized. However, instead of being structured around typical roles and job functions, it is structured around the company’s products or markets. This kind of structure can benefit companies that have several product lines or markets, but it can be challenging to scale. It can also foster inefficiency if product or market teams have similar functions, and without good communication across teams, companies run the risk of incompatibility among various product/market teams.

Geographical Structure

The geographical structure is a good option for companies with a broad geographic footprint in an industry where it is essential to be close to their customers and suppliers. The geographical structure enables the company to create bespoke organizational structures that align with the location’s culture, language and professional systems. From a broad perspective, it appears very similar to the product-based structure above.

Process-Based Structure

Similar to the functional structure, the process-based structure is structured in a way that follows a product’s or service’s life cycle. For instance, the structure can be broken down into R&D, product creation, order fulfillment, billing and customer services. This structure can foster efficiency, teamwork and specialization, but it can also create barriers between the teams if communication isn’t prioritized.

Matrix Structure

With a matrix organizational structure, there are multiple reporting obligations. For instance, a marketing specialist may have reporting obligations within the marketing and product teams. A matrix structure offers flexibility, enables shared resources and fosters collaboration within the company. However, the organizational structure can be complex, so it can cause confusion about accountability and communication, especially among new employees.

Circular Structure

Similar to the functional and product-based structure, a circular structure is also centralized and hierarchical, but instead of responsibility and decision-making authority flowing down vertically, responsibility and decision-making authority flow out from the center. A circular structure can promote communication and collaboration but can also be confusing, especially for new employees, because there is no clear chain of command.

Organic Structure

Unlike vertical structures, this structure facilitates communication between and among all staff. It is the most complex, but it can also be the most productive. Although it can be challenging to know who has ultimate decision-making authority, it can also foster a positive company culture because employees don’t feel like they have “superiors.” This structure can also be more cost-efficient because it reduces the need for middle managers.

There is no one “right” organizational structure. When deciding which structure will work best for your company, consider the following:

• Current roles and teams within the company. How are job functions currently organized? Does it foster communication and productivity? Does it impede or encourage employee growth?
• Your strategic plan. What are your company’s goals for the short-term and long-term?
• Feedback from employees, leadership and other stakeholders. What do those within your company say about how the company is structured? What feedback do you have from other stakeholders, such as customers and suppliers?
• Alignment. What structure will best support your strategic plans and address any feedback received?

What is the most common organizational structure?

A functional organizational structure is one of the most common organizational structures. If you are still determining what kind of structure to use, this organizational structure can be an excellent place to start.

What is the difference between an organizational structure and an organizational chart?

An organizational chart is a graphic that depicts the organizational structure. The chart may include job titles or it can be personalized to include names and photos.

What are the four types of organizational structures?

A functional—or role-based—structure is one of the most common organizational structures. The second type—the product- or market-based structure—is also hierarchical, vertical and centralized. Similar to these is the third structure—the process-based structure—which is structured in a way that follows a product’s or service’s life cycle. Lastly, the geographical structure is suitable for businesses with a broad geographic footprint.

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Christine is a non-practicing attorney, freelance writer, and author. She has written legal and marketing content and communications for a wide range of law firms for more than 15 years. She has also written extensively on parenting and current events for the website Scary Mommy. She earned her J.D. and B.A. from University of Wisconsin–Madison, and she lives in the Chicago area with her family.