Small Project Business Case
Small Business Case Guide (<$10k)
The form needs to be submitted and approved for all projects/purchases that are non-recurring in nature (ie. not for standard business operations such as stocked materials, shop supplies, office supplies, etc). If you are not sure if this form applies, ask the finance department.
Creating a business case has a number of benefits:
- It provides the justification for the proposed business change. It allows leadership to follow the logic and thinking of the project sponsor in making the case for the change.
- Decor wants all employees to have a better understanding of business. Working on a business case helps develop business acumen. It forces you to think through all the implications of the proposed change.
Business cases for non-recurring spending are mandatory.
Problem: Define the issue that you are trying to solve or the opportunity that exists.
Goal: Define what success looks like
Options: What alternatives are you considering? Is status quo an option?
Fermi Math: Using Fermi math, calculate the benefits and costs of each option. Download the Fermi Worksheet.
Check out the Fermi Math Presentation for more information.
If an up-front investment is involved, calculate the Payback Period and/or Return on Investment (ROI). Assuming the benefits/costs are the same each year after the investment is made, the Payback Period is calculated as Investment / Annual Benefits and ROI is the inverse of this equation at Annual Benefit / Investment.
For example, if the proposal is to buy a machine that costs $10,000 and the expected savings as a result are $4,000 per year thereafter, the payback period would be $10,000/$4,000 = 2.5 years and the annual return on investment is $4,000/$10,000 = 40%. Try and think of all annual savings/costs/benefits and net them out to determine the net benefit when doing these calculations.
Recommendation: From the Fermi math and other factors you may come up with, briefly state your recommended solution and explain why.
Implementation Plan: How do you propose to roll out the recommended solution, who needs to be involved and what are the timelines?
Measurable Target: Considering your established goal and the Fermi math, what is your target? Must be measurable.
If over $5k requires approval from a member of senior management.
If under $5k requires approval from your manager.
If you prefer to submit or print a physical version, click the button below to download the guide, form, and FERMI worksheet.
Small Project Business Case Form
(Non-Recurring Purchases and Projects Under $10,000 in Total Spend)