Businesses use a variety of documents to plan and track their progress. Two common types of business documents are business plans and business cases. Both document the current state of the business, outline future goals and detail how those goals will be met. However, there is a key difference between these two types of documents: a business case focuses on strategy while a business plan focuses on investment and viability.
A business plan is a high-level overview of the entire company. It includes the company’s mission statement, an analysis of the competitive landscape, market research, target audience definitions, objectives and strategies for achieving them as well as important financial projections and SWOT analysis.
A business plan is often focused on gaining investment or deciding if a business will be viable going forward
What is a Business Case?
On the other hand, a business case is primarily used as an internal document to justify an action or strategy within an existing business.
A business case will often include a cost-benefit analysis which weighs the pros and cons of taking a particular course of action. This type of analysis is helpful in decision-making because it forces businesses to consider all potential outcomes before committing to anything.
Project vs Overall Business Strategy
Often, the best way of deciding whether a business plan or a business case is needed is by considering the aims.
If you or your business are looking at a specific project or strategy, a business case may be more suited to your needs. For example
- A new product launch
- An expansion into a new market
- The introduction of a new process or technology
On the other hand, if you are starting up a business or want to take a more holistic view of your company’s direction, then a business plan may be what you need.
Scope & Aims of a Business Case
A business case cannot be considered a business plan for a particular project or strategy. A business plan is a high-level document that looks at the entire business and not a specific project or goal.
A business case is a more specific document that looks at a particular project or strategy. It includes a cost-benefit analysis which weighs the pros and cons of taking a particular course of action. This type of analysis is helpful in decision-making because it forces businesses to consider all potential outcomes before committing to anything.
The Key Differences: Business Plan vs Business Case
Business Plan ****Business CaseUsed for overall business strategy and planningUsed for projectsUsed for start-ups and businesses looking to growUsed to make key decision within an existing businessMore comprehensive and focus on financial viabilityLooks at the risks of the projectUsed to convince investorsUsed to convince managers and boards