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Creating A Business Case
To succeed in presenting a business case to the customer, you have to answer their primary question: “Why should I pay for that?”
Salespeople use business cases to sell products.
Employees use business cases to persuade their bosses to invest in equipment, hire more staff or provide more training.
Job seekers effectively present a business case to potential employers. If you’re looking for a job, you are both the salesperson and the product.
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Building Your Business Case
- Business cases usually come in the form of a cost-benefit analysis
- Calculate the total cost of owning and operating (TCO) of the solution you're proposing
- On the other side, calculate the financial benefit you gain from owning/operating the solution
- If the solution can help the company do things faster and more efficiently, then you can calculate how much money the product will save you
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Presenting the Case
- Businesses regard investing large sums of money, be it in equipment, extra staff, or staff benefits, as a larger risk that needs to be justified with a bigger payoff.
- Write a brief introduction, then in the second half write your recommendations and a very brief summary.
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Developing The Mindset
Look at advertisements for various products and services and ask:
Would I buy it or not?
If I buy this, how much does it cost in my local currency and how much would I benefit in local currency would I gain from not buying it?
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Practice Makes Perfect!
Try creating your own business cases.
Start with a side-by-side table. Is there a real business case there?
How would you describe the proposed investment in 100 words?
Some of your figures will probably be estimates. What are they based on? How did you calculate them?
What’s the worst question your customer’s accountant could ask you? How would you answer that? Write that answer down in the extra information section.
Now you have your business case written down.
Is it short? Is it sharp? Is it convincing?
Show it to a colleague for feedback.
What did your colleague think of it?
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