Free Business Case Template — Word Download

01 — Template Structure

What's in the Template — All 10 Sections

The template follows the standard business case structure used in both PMI and PRINCE2 frameworks. Each section has placeholder guidance explaining not just what to include but what makes that section convincing to approvers.

Executive Summary Write Last

The problem, proposed solution, investment required and recommendation in one page. Decision-makers often read only this section — it must stand alone. The template reminds you to write it last so it accurately reflects the full document.

Strategic Alignment

How the project supports organisational strategy, current priorities and any regulatory or compliance drivers. Includes fields for strategic objective, regulatory driver and priority level.

Problem / Opportunity Statement

The quantified business need. Guidance prompts you to express the current situation in business terms — cost of the problem, revenue opportunity, compliance risk — not just a description of inconvenience.

Proposed Solution

What will be done, why this approach was chosen over alternatives, and what it will deliver. Distinct from the options section — this is your positive case for the recommended approach.

Benefits Realisation

Separate fields for financial benefits (with £/$ value and realisation date) and non-financial benefits (with measurable KPI). Every benefit should be measurable — not just "improved customer satisfaction" but "NPS score from 34 to 50 within 12 months".

Cost Summary

CapEx, OpEx (Year 1 and Years 2–5), total 5-year cost, total 5-year benefit, NPV, payback period and ROI. Fields are pre-labelled so finance reviewers can find every figure quickly.

Options Considered

Three structured option slots: Do Nothing (always required), Recommended Approach and Alternative. The "do nothing" option is mandatory in a credible business case — see the options section below.

Key Risks

Three risk fields with likelihood, impact and mitigation for each. Prompts you to include risks to the business case itself — not just project delivery risks.

Recommendation

The formal recommendation — Approve / Reject / Defer — with rationale. Guidance reminds you to be explicit and not hedge. Decision-makers need a clear ask, not a summary of both sides.

Approvals Sign-Off

Signature table with fields for author, finance approval, executive sponsor and investment committee. Four-way sign-off is standard for projects above a defined cost threshold in most organisations.

02 — Options Appraisal

Why the Options Section Is the Most Important Part

The options appraisal is where most business cases are won or lost. A business case that presents only one option looks like it was written to justify a predetermined decision — and experienced approvers will push back on it. A well-structured options section demonstrates rigour and builds confidence in the recommendation.

Option 1 — Always Required

Do Nothing

Describe what happens if the organisation takes no action. Quantify the consequence — cost of the problem continuing, regulatory risk, competitive disadvantage. This anchors the investment case.

Option 2 — Your Recommendation ★

Preferred Approach

Your recommended solution. Explain why this option was selected — cost, speed, risk profile, strategic fit. The detail from Section 4 (Proposed Solution) supports this option.

Option 3 — Alternative Considered

Alternative Approach

A genuine alternative — different vendor, different scope, phased delivery, buy vs build. Show you considered it seriously and explain why it was not recommended.

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PRINCE2 requirement: In PRINCE2, the business case must include a minimum of three options including the do-nothing option. PMI's Business Analysis Practice Guide recommends the same structure. If an approver sees only one option presented, they are entitled to ask for a proper options appraisal before signing off — costing you time and credibility.

Scoring Options Objectively

For larger investments, consider adding a weighted scoring matrix to your options appraisal. Score each option against criteria (cost, risk, timeline, strategic fit, technical complexity) weighted by importance to your organisation. This makes the recommendation visually objective and harder to challenge on the basis of personal preference.

03 — Writing Tips

How to Write a Business Case That Gets Approved

Start with the problem, not the solution

Most people write business cases backwards — they start with the solution they want approved and work backwards to justify it. Start instead with a clear, quantified statement of the problem or opportunity. "Our manual invoicing process costs £180,000 per year in staff time and generates a 12% error rate that delays customer payments by an average of 18 days" is more compelling than "we need a new invoicing system".

Quantify every benefit with a date

Non-financial benefits are legitimate but they must be measurable. "Improved customer satisfaction" is not a benefit until you can say "NPS score from 34 to 50 by Q4 2026, measured by quarterly survey". Every benefit needs a metric, a target and a date. If you cannot measure it, question whether it is a real benefit or just a hope.

Show your cost assumptions, not just the totals

Cost figures without supporting assumptions invite challenge. Show your working: "Labour cost based on 3 FTE × £450/day × 120 days = £162,000". Finance approvers will have seen too many business cases where the numbers look precise but the assumptions are vague. Transparency builds trust and speeds approval.

Write the executive summary last

The executive summary should be the last section you write, not the first. It summarises the full document — and only when the full document is complete can you write an accurate summary. A common mistake is writing the summary first and never updating it as the rest of the document evolves, creating contradictions that undermine confidence in the whole case.

Make the recommendation explicit and unambiguous

The recommendation section should contain exactly one clear statement: "We recommend that the Investment Committee approves Option 2 — the automated invoicing platform — with a total investment of £320,000, targeting payback within 22 months." Do not hedge. Do not present both sides again. Decision-makers need a clear ask. If your business case does not make a clear recommendation, it is not ready to be submitted.

04 — Context

Business Case vs Project Charter — What's the Difference?

These two documents are frequently confused. They serve different purposes and are produced at different stages.

Business Case

📌 Purpose: Justify whether the project should happen at all

📌 Question: Should we invest?

📌 Timing: Before the project is authorised

📌 Audience: Investment committee, sponsor, finance

📌 PRINCE2: Maintained throughout project lifecycle

Project Charter

📌 Purpose: Formally authorise the project to begin

📌 Question: How will we deliver it?

📌 Timing: After the business case is approved

📌 Audience: Project team, PM, sponsor

📌 PMI: PM has authority once charter is signed

In practice the business case precedes the charter. The charter references the business case as its justification. If your organisation uses PRINCE2, the business case is a living document — updated at each stage boundary to confirm the project is still viable and worth continuing. Download our Project Charter template to use alongside this business case.

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PMP exam tip: The PMP exam tests your understanding of the relationship between business documents and project initiation. Key facts to remember: the business case is an input to the Develop Project Charter process. It is created before the project begins. It is NOT a project management document — it is an organisational document that authorises the need for the project. The project manager may help develop it but does not own it. See our 200 PMP practice questions for scenario-based questions on this topic.

05 — FAQ

Business Case — 4 Common Questions

A business case is a formal document that justifies the investment of time, money and resources in a project. It explains the problem or opportunity being addressed, presents the proposed solution alongside alternatives, quantifies expected costs and benefits, assesses key risks and makes a formal recommendation. In PRINCE2, the business case is maintained throughout the project lifecycle. In PMI frameworks, it is produced during project initiation and feeds into the project charter.

A complete business case should include: (1) Executive summary — the problem, solution and recommendation in one page. (2) Strategic alignment. (3) Problem or opportunity statement — quantified in business terms. (4) Proposed solution. (5) Benefits realisation — financial and non-financial with measurable targets and dates. (6) Cost summary — CapEx, OpEx, ROI, NPV and payback period. (7) Options considered — always including do nothing. (8) Key risks with mitigations. (9) A clear recommendation — approve, reject or defer. (10) Approvals section with sign-off.

A business case answers "should we invest?" — it justifies whether the project should happen at all. A project charter formally authorises the project to begin and defines the PM's authority. The business case comes first and is approved before the charter is issued. In PMI terms, the business case is an input to the Develop Project Charter process. In PRINCE2, the business case is a living document updated at each stage boundary to confirm the project remains viable.

A business case should be as long as it needs to be — and no longer. For a small internal project under $50,000, 3–5 pages is typically sufficient. For a major capital investment or transformation programme, 15–30 pages with supporting appendices is normal. The executive summary should always fit on one page — decision-makers often read only this section. The key rule: every section should help the approver make a better decision. If a section does not do that, cut it.

Free Business Case Template Word Download