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It becomes more important as the cost and complexity of the project increases. This Factsheet will help municipalities and not-for-profit organizations prepare an effective business case for raising funds — both within the community and through government programs.
A business case is similar to a business plan prepared for private business. Its purpose is to outline the business rationale for undertaking the project and to define the parameters and management factors involved in the project itself. It provides the project manager with a tool to guide the design, management and evaluation of the project.
Business planning software is available wherever business books and computer programs are sold. The business case provides evidence that the project is a good investment for both the funding partner and the community.
Funding partners and government funding programs usually require a business case before committing to the project. The grant application is separate from the business case. It merely conveys the basic information required by the granting body.
The business case accompanies the grant application. Its purpose is to sell the idea or concept to the funding administration. Therefore write in clear, plain language, avoiding technical jargon.
This helps the program administrator and the potential partner to understand the need to help fund the project.
If specific forms are requested as part of a program application, complete the information in full, using the format provided. Make sure you thoroughly understand both the terms of reference of the program, and the nature of the project, both the wording and the intent, before beginning to prepare the application form.
The business case is attached to the application form, along with letters of commitment and support from potential partners. The business case serves four purposes: It helps the applicant think through the project in a systematic, step-by-step manner.
It explains to program administrators, funding partners and other interested parties why the project should be undertaken. It helps potential funding partners understand the economic value of the project. It provides a framework for completion of the project on time and on budget.
An effective business case is one that matches the purpose and parameters of the funding program that it seeks to attract. In short, an effective business case justifies: While the business case may be presented in various formats, there are certain elements to include in any written document.
The description that follows is a logical sequence for the final business case.
This format can be adapted to almost any project, but be sure to present the business case in a manner that will create a favourable impression on the funding partner or program administrator.
Make sure it is neat and orderly, simple, balanced and easy to read. Table of Contents The table of contents lists the major headings in the business case, and the page on which each is found. Remember to number the pages in the document. While it is the last section completed, it is placed immediately following the title page.
Executive or Project Summary This is your first and most important selling tool. It is where you create the critical first impression of the project, so it is important to summarize the most important elements of the project in a concise and compelling manner.
Guidelines for writing the executive summary are listed below. Describe the project precisely and concisely, avoiding excess descriptive words. Tell why the project is necessary, and why it is the best solution. Outline the most important benefits of the project to the community.
Outline the costs and major disadvantages, if any. Summarize the most important reasons for recommending the project.
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