How to build a business case like a CFO

Creating a well-thought-out business case is not just a requirement; it's crucial to a company's success and strategic growth. The CFO plays a pivotal role in this process, ensuring that all financial decisions are not only smart but also align perfectly with the company's long-term objectives.

As gatekeepers of financial rigor, CFOs are tasked with constructing robust business cases that effectively persuade stakeholders and decision-makers to commit resources to a project or initiative. A business case isn't just a financial document—it's a strategic tool that outlines the potential financial and strategic benefits of a proposed project or investment.

If you aim to develop a business case with financial acumen akin to that of a seasoned CFO, our comprehensive five-step business case framework offers a methodical approach to achieving this goal. This framework ensures that each business case is built on a solid foundation of financial and strategic planning, providing clear, convincing reasons why investments should be made.

Step 1: Confirm the Opportunity

Describe the situation and the business opportunity that your proposal will impact. This includes confirming the project's background, investment logic, and high-level business requirements.


Step 2: Analyze and Select the Short-listed Options

Identify the alternative approaches and select three or four options to analyze. Gather information about each alternative, analyze the options and develop the shortlisted options.


Step 3: Evaluate the Options

Evaluate how the options will deliver the business objectives, quantify the benefits of each potential solution, and then select the preferred option, taking into account the strategic, financial and societal value created and the risks.

Quantifying the business benefits is central to strategic planning, financial, cost-benefit, and business case analysis. So first, we develop the financial projections. This includes modelling the detailed revenue and operational cost model and financial model. Next, we create the cash flow statement for our discounted cash flow projections (or DCF) analysis. Finally, we confirm the hurdle rates are the minimum acceptable internal rates of return for investments, which is an essential metric for investors, private equity firms and management teams to evaluate potential opportunities.

Conduct a financial analysis: Perform a detailed financial analysis, including cost-benefit analysis, discounted cash flow analysis, return on investment (ROI) calculations, scenario analysis and sensitivity analysis.
Evaluate the risks: Identify and evaluate the risks associated with the project or investment.

It's important to note that a CFO will consider other factors like strategic alignment, market trends and risks, and the organization's overall financial health.


Step 4: Develop the Implementation Strategy

Create the implementation plan for the preferred option, detailing how to achieve the business objectives, the resources needed, the project team, who will be accountable for each milestone, and how to mitigate the project risks.


Step 5: Develop the Recommendations and Get the Approval from Decision-Makers

The objective is to get approval from the board, executive team, external stakeholders or investors for the business case.

Once the business case has been developed, it's essential to communicate it effectively. This includes presenting the results clearly and concisely, as well as providing an explanation of the assumptions and methodology used in the analysis.

It's also essential to ensure that all stakeholders are kept informed throughout the process. This includes providing regular updates on progress and any changes to the original assumptions or financial projections.



These five steps provide the solid foundation for developing business cases.

If you want to ensure that your business case is the best it can be, get our free Business Case Guide explaining the Five Steps to Developing a Solid Business Case.

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Check out our Business Case Masterclass programs to learn more!

The Business Case Masterclass is a three-workshop program designed to develop your business case skills and expertise.

The leadership team and stakeholders want to know how projects, innovations and investments will make money.

The Business Case Masterclass will help you build a stronger business case by providing you with the knowledge, resources and tools you need to develop your capabilities.

• The first workshop is our Business Case Foundations to give you a solid foundation for developing the business case.

• The second workshop is Financial Analysis in Business Cases for determining the investment and financial value of the business case.

• The third workshop is Developing Persuasive Business Cases, documents, pitch decks and presentations.

The Business Case Masterclass

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