Business Case Vs Business Plan

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Business Case and Business Plan

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Business Case and Business Plan

A business case is a documented argument consisting of the requirements to move an idea from a simple idea to an actual project. A business plan is a proposition for a new business or the expansion of an existing business. Both business plan a business case are important aspects to realizing a successful business. Below, we shall discuss these two concepts, their differences and how they relate. In addition, we will discuss why these two aspects are important in establishing a stable and successful business.

A person cannot wake up one day, out of the blues starts a business and expects it to flourish. To have a successful

A business case comes into play. The main purpose of the business case is to realize a business plan. Contrary to a business plan, a business case must have persuasive language. It gives the investor a reason to participate in achieving the business plan. It should be catchy and have reasons as to why investing in such a venture would be profitable. Just like a business plan, the business case must have the purpose of the business. Since a business case is purposely addressed to an investor, it must contain the reasons as to why the investor ought to support the business. In addition, it should include the benefits and the costs incurred. A good business case should offer an alternative to the regular business. This is because the case is meant to persuade an investor why they ought to invest in the particular

However, not all businesses require a business case. A case is only vital in a situation whereby a business owner requires endorsements. If an individual has enough capital to establish a business, then a business case is not of great help.

Consider the template format below:

A good template must outline the problem which needs to be tackled. The problem may be a financial problem or a legal problem. These are a few example of formulating a business case. The problem is followed by the solution. This entails a method of tackling the stated issue. In addition, it gives a brief description of the advantages of investing in the business. The solution is followed by the approach. This involves the methodology used to tackle the stated issue. These are the three key elements of a business plan. In addition, the risks of investing the business must be stated. This helps the investor know how safe his or her money is once they invest in the business. Lastly, a business case must include value analysis. Value analysis is a summary of the benefits of each step of investment. The value analysis is critical as it is the one which enables to decide whether to invest in the business or not. It gives a summary of the business, its pros, and cons.

Consider the business plan outline