Executive summary
Translate the concept's trigger and objective into two or three genuinely distinct options, each with an order-of-magnitude cost, benefit and risk profile, and a recommended path. The output is a decision document, not an engineering design; it hands the feasibility study a scoped, funded mandate to test the recommended option in detail.
This stage receives the one-page concept and sponsor from project concept and must not re-litigate whether a problem exists — that was settled upstream. Its job is to compare credible options and make a recommendation.
The business case is the reference document every later stage will be measured against, so its objectives and success criteria must be specific and time-bound.
What this stage must resolve
- A sponsored concept awaiting quantified justification
- Multiple credible ways to address the same objective
- A funding gate that requires a documented recommendation
- Competing internal priorities for the same capital pool
- A need to align finance, operations and commercial stakeholders on objectives
Work performed in this stage
Do-nothing baseline
Quantified cost of inaction as the comparison point for every alternative.
Incremental option
Smaller-scope investment addressing part of the objective at lower risk and cost.
Full-scope option
Addresses the complete objective, typically the sponsor's initial intent.
Phased option
Sequenced investment allowing a stop/go decision between phases.
Outsource/partner option
Meeting the objective without owning the asset, where relevant.
Risks and governance considerations
- Financial logic at this stage is indicative, not investment-grade; that precision comes later in budget development
- Success criteria must be measurable so commissioning and performance optimization can later confirm delivery
- A business case that only presents one option will not survive board scrutiny
- Currency, tax and financing assumptions should be stated explicitly, not implied
What to prepare
- Concept note and sponsor confirmation
- Two to three costed options with a do-nothing baseline
- Indicative payback or return estimate per option
- Risk register at option level
- Recommended option with rationale
What to measure
Frequently asked questions
How precise must the numbers be?
Indicative, typically ±30-40%, sufficient to choose a direction and fund the feasibility study that will tighten the numbers.
Who approves the business case?
Typically the same governance level that will later approve capital release, so expectations are aligned from the outset.
What if leadership rejects all options?
The concept returns to the pipeline or is closed; the effort invested is small relative to proceeding on an unsound premise.
Related investment and financing knowledge
Project Lifecycle Stage
Project Concept
Project Lifecycle Stage
Feasibility Study
Executive Decision Guide
How to Build an Industrial Business Case
CAPEX Intelligence
Industrial Investment Strategy
CAPEX Intelligence
Production Capacity Planning
Executive Decision Guide
How to Prepare an Industrial Investment
Executive Briefing
What CEOs Own in Industrial CAPEX
Executive Briefing
What Boards Own in CAPEX Approval
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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.