A business case template is a structured document for arguing that a project or purchase is worth funding. It sets out the problem, the options, the costs and benefits, and the risks, then ends with a clear recommendation for decision makers to approve.
It is the document you put in front of the people who hold the budget when you want money for something new. It explains why the spend is needed now, what else was considered and what the organisation gets back, in a form they can compare with other requests.
Managers use one for any spend large enough to need sign-off above their own limit: a new software platform, extra headcount, an equipment upgrade or an outsourced service. A business justification template is the shorter cousin, used for smaller purchases where one page is enough.
The template matters because finance teams judge many requests at once. When every case follows the same structure and uses the same cost and benefit measures, approvers can rank them fairly and decide faster.
Why the change is needed and how it supports the organisation's goals.
The options considered, including doing nothing, and which gives the best value.
How you will buy it: the vendor, pricing model and contract terms.
What it costs over its life, where the money comes from and what it returns.
Who delivers it, the plan and timeline, the risks and how benefits will be tracked.
Ready to use in Word, Google Docs and PDF. Fill it in, save it, reuse it.
Describe the problem or opportunity in numbers: hours lost, errors made, revenue missed.
Include doing nothing and at least two real alternatives, each with a rough cost.
Build a 3-year view of costs and benefits for each option, using real quotes where you can.
Draft the case, then walk finance and the budget owner through it before the formal review.
Get sign-off at the right level, then check the promised benefits after go-live.
For a small purchase, write one page: the problem, the proposed solution, the cost, the benefit and the ask. Use the full template once the spend needs finance or board approval.
Copy this outline into your document and keep the order, because approvers look for the same things in the same place each time. Aim for six to ten pages for a large purchase, with detailed quotes and calculations in appendices.
The ask, the total cost, the main benefit and the payback period, in half a page.
What is wrong today or what could be gained, with evidence and figures, and how it links to company goals.
Doing nothing, plus two or three alternatives, each with cost, benefit and the reason it was or was not chosen.
A 3-year view of one-off and recurring costs against measurable benefits, with ROI, payback and NPV.
Preferred vendor, how it was selected, pricing model, contract length and key terms.
What could stop the benefits arriving, how likely it is and what you will do about it.
Owner, milestones, resources needed and how benefits will be measured after launch.
The option you recommend, the decision you need, by when, and the sign-off table.
Request: Approve [amount] over [3] years to buy [software name] for [team]. Problem: [Team] spends [number] hours a week on [manual task], causing [errors, delays or lost revenue]. Recommendation: Buy [software name] from [vendor] on a [3]-year contract. We compared it with [option 2] and with keeping the current process. Cost and return: Total 3-year cost is [amount]. Expected benefits are [amount], an ROI of [x]% with payback in [months]. Decision needed: Approval from [role] by [date] to sign before [deadline or price expiry].
Software cases are often rejected because they show only the licence fee. This example counts implementation, training and internal admin time, and ramps the benefits in year one, which is how finance will check it.
| Line | Year 1 | Year 2 | Year 3 | Total |
|---|---|---|---|---|
| Licences (150 users) | 72,000 | 72,000 | 72,000 | 216,000 |
| Implementation | 25,000 | 0 | 0 | 25,000 |
| Training | 8,000 | 0 | 0 | 8,000 |
| Internal admin time | 12,000 | 12,000 | 12,000 | 36,000 |
| Total cost | 117,000 | 84,000 | 84,000 | 285,000 |
| Planner time saved | 45,000 | 90,000 | 90,000 | 225,000 |
| Fuel saved from better routing | 20,000 | 40,000 | 40,000 | 100,000 |
| Old tool retired | 9,000 | 18,000 | 18,000 | 45,000 |
| Total benefits | 74,000 | 148,000 | 148,000 | 370,000 |
| Net benefit | -43,000 | 64,000 | 64,000 | 85,000 |
Illustrative figures for a fictional company. Year 1 benefits are half the full rate while the team adopts the tool.
Rows 2-5 are costs, row 6 total cost, rows 7-9 benefits, row 10 total benefits, row 11 net benefit.
| Measure | Formula |
|---|---|
| Net benefit, year 1 | =B10-B6 |
| ROI over 3 years (about 30%) | =(E10-E6)/E6 |
| Payback in months (about 20) | =12+ABS(B11)/C11*12 |
| NPV at an 8% discount rate (about 65,860) | =NPV(8%, |
Doing nothing is never free: it carries the cost of the problem you described. Put it first so the other options are measured against it. Keep the table to one page and move detail to an appendix.
| Option | 3-year cost | 3-year benefit | Risk | Verdict |
|---|---|---|---|---|
| Do nothing | 0 | 0 | High | Problem continues, planner overtime grows |
| Extend the current tool | 60,000 | 90,000 | Medium | Cheap, but cannot do routing |
| Buy Kestrel Data scheduling | 285,000 | 370,000 | Low | Recommended |
| Build in-house | 340,000 | 370,000 | High | Same benefit, later and dearer |
Illustrative figures, continuing the Northwind Logistics example.
Most purchase requests do not need eight sections. Use this page for a new software tool, a small contract or an extra licence tier, and attach the quote. If you cannot fit the reasoning on one page, use the full template.
Requested by: [Name, team] Date: [Date] Purchase: [What you want to buy, from which vendor] Why we need it: [The problem, in one or two sentences with a number] Cost: [Annual cost] for [term]. One-off costs: [set-up, training]. Budget line: [cost centre or budget]. Expected benefit: [Hours saved, cost avoided or revenue gained, per year] Alternatives considered: [Option and why it was rejected] If we do not buy: [What happens instead] Approved by: [Name, role] Date: [Date]
Approvers read the risks section to judge how realistic the benefits are. Naming risks openly, with a plan for each, makes the case stronger rather than weaker. The approval table then turns the document into a decision.
| Risk | Likelihood | Impact | Mitigation | Owner |
|---|---|---|---|---|
| Low adoption by planners | Medium | High | Two planner champions and training in month 1 | Ops manager |
| Integration with dispatch system slips | Medium | Medium | Integration tested in a 30-day pilot before full rollout | IT lead |
| Price rise at renewal | Medium | Medium | Cap annual increases in the contract | Procurement |
| Benefits overstated | Low | High | Track planner hours monthly against the baseline | Finance partner |
Illustrative risk register for the worked example.
| Role | Decision | Limit | Date |
|---|---|---|---|
| Budget owner | Confirms budget is available | Up to 50,000 a year | [Date] |
| Finance director | Approves cost and return | Up to 250,000 total | [Date] |
| CFO | Final approval | Above 250,000 total | [Date] |
Sample approval limits. Use your own delegation of authority.
Software business cases need real prices. Spendflo pricing benchmarks show what others pay.
See pricing benchmarksReturn on investment: net benefit divided by total cost, over the same period.
How long until cumulative benefits cover cumulative costs.
Net present value: future net benefits discounted to today's money at your cost of capital.
Total cost of ownership: every cost over the life of the purchase, not only the price.
What the current problem costs each year if no option is approved.
How the result changes if benefits are 20% lower or costs 20% higher.
Hours, errors or revenue lost per year give approvers a baseline to measure against.
Vendor quotes or benchmark prices beat estimates, and finance will ask for them.
Assume a slower first year while people adopt the change.
Someone must be accountable for proving the benefits after go-live.
Walk finance through the numbers before the formal meeting, so there are no surprises.
Leaving out implementation and internal time makes the ROI look better than it is.
A case with no alternatives looks like a decision already made.
Better morale is real, but list it separately from savings you can bank.
If the executive summary runs past a page, approvers stop reading.
Pull the current cost in hours, errors or spend from your own systems.
Get quotes or benchmark prices for each option, including doing nothing.
Fill in the cost and benefit table and check ROI, payback and NPV.
Draft each section, test it with finance and submit for approval.
Cedar Health drafts a case for a contract management tool quoted at 54,000 a year. Before submitting, procurement compares the quote with benchmark pricing and negotiates it to 45,000. Three-year cost falls by 27,000, payback drops from 19 to 15 months, and the CFO approves at the first review. Figures are illustrative.
Every part on this page, in Word, Google Docs and PDF, with the examples filled in.
Use the one-page business justification with the quote attached. Keep the reasoning to the problem, cost and benefit.
Use the full outline with a 3-year cost and benefit table, at least three options and a risk register.
Write each of the five cases as its own chapter, add sensitivity analysis and plan how benefits will be reviewed after delivery.
Best for formal cases with appendices.
Best when finance and the sponsor edit together.
Best for the version sent to approvers.
Approved cases still need a clean purchase. Spendflo runs software intake, approvals and contracts.
See how it worksA strong business case shows the problem in numbers, the options you weighed and a return finance can check. Once it is approved, the same discipline should carry through to the request, the contract and the renewal.
Quick answers to what people ask most about the business case template.
A business case usually runs: executive summary, problem, options, costs and benefits, commercial approach, risks, implementation plan and recommendation. Supporting quotes and calculations go in appendices. Download the template to get that format ready to fill in.
The five elements are the strategic, economic, commercial, financial and management cases: why, which option, how to buy, what it costs and how it will be delivered. Larger organisations and the public sector often require all five. Download the template to see where each element sits in the outline.
Measure the problem, list at least three options including doing nothing, and build a 3-year view of costs and benefits. Then write the case in a fixed order and finish with a clear ask. Download the template to follow those steps with a worked software example.
A business case should include an executive summary, the problem, the options considered, costs and benefits, risks, and a recommendation with an implementation plan. Leave any of the six out and approvers will ask for it. Download the template, which has a section for each.
You can download a free business case template on this page in Word, Google Docs or PDF. It includes the full outline, a software purchase example with ROI and payback, and a one-page business justification version.
Budgets and business cases
Purchase orders
Contracts
Vendor management
Sourcing and RFx
Procurement
Accounts payable
Purchasing
Software buying
Supply chain
Spendflo handles software intake, approvals, pricing benchmarks and contracts, so the approved number is the number you pay. Budgets are coming soon.
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