Business case template: how to structure a case finance will approve

A business case asks for a decision and gives the evidence to make it. Approvers read the recommendation first, then test whether the numbers and risks hold up. Structure the document around that reading order.

The structure

1. Executive summary. The decision requested, the recommended option, the cost, the benefit and the payback, on one page.

2. Strategic context. The problem or opportunity, why it matters now and how it links to business priorities.

3. Options appraisal. At least three options, including doing nothing or doing the minimum. Compare them on cost, benefit, risk and deliverability.

4. Financial case. One-off and recurring costs, quantified benefits, net present value or payback, and the assumptions behind every figure.

5. Commercial approach. How you will buy: route to market, contract length, pricing model and key terms.

6. Delivery plan. Milestones, resources, governance and who owns the benefits.

7. Risks and dependencies. The main risks, their impact and the mitigations.

8. Recommendation and next steps. The decision required, by whom and by when.

Comparing options

| | Do nothing | Option A | Option B | |---|---|---|---| | One-off cost | | | | | Annual cost | | | | | Annual benefit | | | | | Payback period | | | | | Key risk | | | |

Keep the comparison on one page. If the preferred option is not the cheapest, explain why the extra cost is worth it.

Questions approvers ask

• What happens if we do nothing?
• Which benefits are cash, and which are avoided cost or productivity?
• Who has agreed the benefit figures?
• What is the cost of exit at the end of the contract?
• What could make this fail, and what is the early warning?

Answer these in the document and the approval meeting becomes a short discussion.

Where procurement adds value

Procurement strengthens a business case with market evidence: realistic pricing from an RFI, total cost of ownership over the contract term and the commercial levers available in negotiation. Bring procurement in before the budget is fixed.

Templates

The [Demand, planning and strategy toolkit](/toolkits#toolkit-02) includes a business case template, a requirements and specification template, a market analysis toolkit and a category strategy template. The [Sourcing toolkit](/toolkits#toolkit-03) adds a total cost of ownership calculator. For the case to invest in the procurement function itself, see the procurement function business case in [Foundations](/toolkits#toolkit-00).