Executive summary
Preparation follows a fixed sequence: define the problem the investment solves, quantify the current-state baseline, size the option set, assign an accountable owner, build the outline business case, and only then approach the market. Skipping steps to save time typically adds months later when gaps surface at approval or financing stage.
The situation this guide addresses
- A capital request is being drafted without a written baseline
- No single owner is accountable for the proposal end to end
- Technical scope and financial case are being developed in isolation
- Site or utility constraints have not been surveyed
- Financing route has not been considered before scope is fixed
- Approval body's evidence requirements are unknown to the drafting team
The framework, step by step
Step 1 — Define the problem
State the constraint or opportunity in operational terms before any equipment discussion.
Step 2 — Baseline the current state
Quantify capacity, cost, quality and downtime as they stand today, with data sources cited.
Step 3 — Assign a single accountable owner
One named individual carries the proposal through approval; committees do not own outcomes.
Step 4 — Size the option set
Develop at least two credible alternatives, including a do-nothing case, before selecting a preferred route.
Step 5 — Draft the outline business case
Cost, benefit, risk and financing logic in one document, sized to the approval threshold.
Step 6 — Sequence market engagement
Approach suppliers and financiers only once scope and budget range are fixed internally.
Comparison table
| Element | Ready | Not ready |
|---|---|---|
| Baseline data | Sourced, dated, agreed with operations | Estimated or contested |
| Ownership | Single named accountable owner | Shared across a committee |
| Option set | Two or more credible alternatives costed | Single preconceived solution |
| Financing view | Route considered before scope fixed | Not yet discussed |
| Approval fit | Matches template and evidence threshold | Unknown requirements |
Preparation maturity check
Risks and governance considerations
- Rushing to supplier quotations before scope is fixed inflates the option set and slows decisions
- Baseline data quality determines the credibility of every later projection
- Approval bodies discount business cases that lack a named accountable owner
- Financing constraints not considered early can force a late redesign of scope
- Multi-site organisations should confirm which template and threshold apply before drafting
What to prepare
- Written statement of the problem in operational terms
- Baseline capacity, cost and quality data with sources
- List of credible options including do-nothing
- Named accountable owner and reporting line
- Approval body's documentation and threshold requirements
What to measure
Frequently asked questions
How long should preparation take?
For a mid-sized capital project, four to ten weeks of structured preparation is typical before external quotations are sought.
Who should own the proposal?
A single named individual, usually the requesting operations or project director, not a committee.
Can preparation start before budget is confirmed?
Yes; scoping and baselining do not require budget confirmation, only the business case and supplier engagement do.
Related investment and financing knowledge
Continue on the platform
Educational, supplier-neutral and financing-neutral
Global B2B Group does not sell equipment and does not represent lenders, export credit agencies or development banks. This material is published to help industrial organisations plan, structure and prepare capital projects. It is general information for decision-making, not financial, legal or tax advice.