A business case for new projects and ideas is an incredibly valuable tool. Approximately 70% of the Australian workforce are either work for or own Small and Medium businesses. A very significant amount which shows the value of SMB in the economy. Despite this, SMB's all too often don't follow some simple and highly valuable business practices.
A business case is quite often thought to be a large business formality that doesn’t need to happen on the smaller scale. What is often ignored is that a business case doesn't need to be massive multi-page novel, it can be a simple one-page document to ensure staff, contractors and most importantly yourself, all maintain the right direction forward. A project in small and medium business is very often run by internal staff or the business owner - which is completely acceptable - however, there are many pitfalls that need to be safeguarded. We won't list all of these here, but a common issue is maintaining the right outcome.
When there is a clear goal and outcome in sight managers and staff will always be more productive. So why do small businesses neglect to create simple and effective outcomes for their staff? Effective being the keyword. The common practice seen is that a business owner or manager states an arbitrary and non-specific outcome. They give little to no boundaries, budgets or measurable outcomes, believing that they can control and steer the project closer to their chest. After all, they are running a business, surely they can manage a project. Some business owners learn from experience after the first project goes over budget, over time and still doesn't quite get the outcome you're expecting.
A big part of this is communication and a large part of this can be quite easily addressed with a simple and concise Business Case. The following are the key items to have in any business case:
There are other items that can be included in these business cases. I often encourage it in the larger sized companies where the distribution of the document needs to be monitored and tracked, or if there are strict compliance requirements for the organisation. The following items will be common to most organisations that need it but should be considered by those who don't use them on a day to day basis.
There are quite a few points to cover in a business case, but they are all equally as important to be able to make proper business decisions and to ensure everyone is on target. The document itself can be a single page with some good formatting a layout. The point is, it doesn't need to be novel. Keep it short, simple and easy to read and reference. This document can become part a standardised process whenever any new investment is being made. Think about using it for new staff hires, car/fleet upgrades, technology changes and when moving premises. If you want more info about this, you can book a free 15 minute consultation with me. Just click on the button below.
Read my recent blog about Process Mapping...