A business case template in Excel is a pre-formatted spreadsheet designed to help you organize, calculate, and present the quantitative aspects of your business case. It facilitates the analysis and presentation of the financial and numerical data that support your case.
I've spent my career building these industry-specific Excel templates for all sorts of business cases.
Here's what such a template typically includes and helps you do:
Cost Analysis: To calculate initial and ongoing costs associated with the project. This could include capital expenditures, operating expenses, and indirect costs. Often times the cost will inform your pricing or basis for pricing products or services via a markup.
Benefit Analysis: To estimate the financial benefits the project will deliver. This could be increased revenue, cost savings, or other financial gains.
Cash Flow Analysis: To assess how the costs and benefits will affect cash flow over time. This can include a discounted cash flow (DCF) analysis to present the net present value (NPV) of the project.
Return on Investment (ROI): To calculate the ROI, which helps in determining the profitability of the project. This could also include calculations for payback period and internal rate of return (IRR).
Risk Assessment: To quantify potential risks and their impacts. This can include a risk register with likelihood, impact, and mitigating actions.
Break-Even Analysis: To determine when the project will start generating a profit, by comparing costs to revenue.
Sensitivity Analysis: To examine how sensitive the outcomes are to changes in key assumptions. This can help in understanding the robustness of the case under different scenarios.
Scenario Analysis: To compare different scenarios side by side, such as best case, worst case, and most likely case.
Data Charts and Graphs: To visually present the data for quick understanding and to make the business case more compelling. Excel can generate pie charts, bar graphs, line graphs, etc.
Summary Dashboards: To create an at-a-glance summary of the project's financial health, including key metrics and indicators.
Using an Excel template can greatly streamline the process of creating a business case, especially since many of the complex calculations, such as NPV or IRR, can be handled automatically by Excel's built-in functions. Templates also ensure that nothing is overlooked and that all necessary financial considerations are accounted for in a standardized format that's typically recognized across various industries.
Note, if you are trying to raise money in any capacity, investors are going to want to see a financial model that goes through all details of how the business works, the unit economics, and your plan for scaling operations. You can download my full library of financial model templates for this here (over 170 templates).
Here is a list of things a general business case document can include:
Executive Summary:
- The hook: What will grab the attention of decision-makers?
- Brief description of the proposal and its benefits.
Problem Statement:
- Identification of business needs or opportunities.
- The impact of the current problem or the potential opportunity.
Situation Analysis / Background:
- The current environment and context of the business.
- Stakeholder analysis.
Scope and Objectives:
- Boundaries of the project: What will and won't be addressed?
- Specific goals and objectives of the initiative.
Strategic Alignment:
- How the project aligns with strategic business goals.
- Contribution to the organization's mission and vision.
Options and Comparisons:
- Alternative solutions considered.
- Comparison of potential solutions.
Financial Analysis:
- Detailed cost-benefit analysis.
- Return on investment (ROI) and payback period.
- Break-even analysis.
Risk Assessment and Management:
- Identification of potential risks.
- Mitigation strategies for each risk.
Project Plan and Resources:
- Implementation timeline and key milestones.
- Resource allocation (human, capital, etc.).
- Required changes to business processes or systems.
Change Management:
- Strategies for managing change within the organization.
- Communication plan for stakeholders.
Critical Assumptions and Decision-making Criteria:
- Assumptions underpinning the business case.
- Criteria for decision-making and measuring success.
Evaluation and Benefits Realization:
- How the impact of the project will be measured.
- Plan for realizing and tracking benefits.
Sustainability:
- Considerations for long-term project viability.
- Environmental, social, and governance (ESG) factors.
Legal and Ethical Considerations:
- Compliance with relevant laws and regulations.
- Ethical implications of the project.
Technology Requirements:
- Technical infrastructure needed for the project.
- Impact of technology changes on the organization.
Market Analysis:
- Market trends and competitive landscape.
- Customer or client demands.
Stakeholder Impact and Communication:
- How different stakeholders will be affected.
- Plans for stakeholder engagement and communication.
Appendices and Supporting Documentation:
- Any additional supporting data, research, or analysis.
- Detailed project timelines and cost breakdowns.
Presentation and Visualization:
- Creation of visual aids to help present the business case.
- Charts, graphs, and dashboards for summarizing key points.
