What is a business case

What is a “business case”?

At its core, a business case is a structured way to evaluate whether a decision (like entering a new market or launching a product) makes financial and strategic sense.

It’s not just one bucket in a framework (like “profitability”) — it’s more like the anchor that holds the entire analysis together.

Think of it like this:

Any organization — whether it’s a small café or an entire government — runs on basic principles: revenue, costs, risks, and value.

In consulting, a business case means:

• Estimating revenues (e.g. how many customers, price per unit)
• Estimating costs (e.g. fixed, variable, one-time investments)
• Estimating profit (is this venture financially viable?)
• Considering risks, capabilities, strategic fit — the non-monetary side

In a market entry case:

You’d first ask:

“Is there a viable business case for entering this market?”

Which means:

• Can we make enough money here?
• Will our revenues minus costs justify the move?
• Do we have the resources to succeed?

If the answer is no, the strategy doesn’t matter. That’s why many consultants start here — to rule in or rule out the idea early.

Final Tip:

If you’re from a non-business background, don’t worry. The logic is universal. Every decision in business ultimately comes down to value creation and value capture.

Let me know if you’d like a simple business case walkthrough — happy to sketch one out.

Hi there,

I would be happy to share my thoughts on your question:

• First of all, please keep in mind that thinking in terms of factors or dimensions (or, even worse, the term "buckets") is not meaningful for almost all consulting firms except McKinsey, since they ask for an approach. Instead, you need to think about the steps or analyses to answer the question.
• Moreover, the person who said this is absolutely right, since the very core of essentially any case study (and this also applies to public sector case studies) is the quantitative/financial part, i.e., you need to verify whether the client’s goal/requirement will be met. This is done via a business case or, generally speaking, a quantitative assessment, in which, for example, you might need to calculate the break-even point.
• Lastly, considering how much this statement seems to have irritated you, I would strongly advise you to consider working with an experienced coach like me on your structuring skills. I developed the "Case Structuring Program" to help exactly such candidates like you who struggle with case study structures.

You can find more on this topic here: How to succeed in the final interview round.

If you would like a more detailed discussion on how to best prepare your application files, for your upcoming pre-interview assessments and/or interviews, please don't hesitate to contact me directly.

Best,

Hagen

Essentially “What case can you make that for the business to consider this opportunity?”

Typically would then add considerations relevant to a key business decision maker or stakeholderss. Questions to have in mind is whether 1. It is feasible to undertake and 2. It is profitable to undertake (also taking into account any investment requirements/ return expectations by the business)

Hello there!

A business case ia usually a quantitative exercise made to prove the value of an endeavor.

Each one of these problems will require a different approach that will take into consideration the context, goals, boundaries and expectations.

For example, if a company wants to enter in a specific market it will probably have a goal (it can be related to market penetration, revenues, profits…), a deadline and some boundaries (such as money available to make this move). Your structure / business case must evaluate all the aspects that may impact these points.

Let me know if it’s clear!

Best,

Mari

Think about it as making a type of structured pros and cons list with potential (financial) implications of the decision that will ultimately enable top management to decide whether to do this or not.

Actually, this sounds like confusing advice. 

You should start each structure with what it makes most sense to start it with. And that differs from case to case.

Interviewers look for tailored structures that reflect both that specific case and your way of thinking through the problem. 

So anything that appears as if it should be used all the time is the wrong direction to go into. 

Best,
Cristian