Needs analysis

Defending your Purchasing Business Case: Our advice

Published By
Olivier Audino
Procurement strategy

To defend your purchasing business case, it is essential to demonstrate good preparation and a solid argument. First of all, it is essential to conduct a thorough market study in order to know the needs of potential customers, industry trends and existing competition. This study will make it possible to define the economic model of the business creation project, by identifying opportunities and evaluating the feasibility of the business. At the same time, a provisional financial plan and a detailed financing plan should be drawn up.

Defending your Purchasing Business Case

Essential Financial Strategy: Provisional Income Statement and Cash Flow Plan as Guarantors of Project Credibility and Viability

The provisional income statement will make it possible to estimate the profitability of the company in the medium and long term, while the cash flow plan will make it possible to guarantee good financial management. These elements reinforce the credibility of Business case and will demonstrate the viability of the project. It is important to structure the business case in a clear and synthetic way.

Drawing up a business plan

Developing a Solid Business Plan: Strategy, Market Analysis and Convincing Funders

A good business plan will include a section dedicated to writing the business plan, which explains the marketing and commercial strategy as well as the strategy for launching and developing the business. It is also recommended to include a market analysis, highlighting potential customers and competitors, as well as a detailed financial section, including the projected income statement and cash flow.

Once the business case has been developed, it is crucial to convince potential funders, such as bankers or investors. It is therefore necessary to present an effective and realistic plan, highlighting the strengths of the project and explaining how it stands out from the competition.

Business Case Optimization: Financial Transparency, Accounting Expertise and Entrepreneurial Conviction

It is also important to highlight funding needs and to present financial projections transparently. In addition, it may be appropriate to call on a chartered accountant in order to bring additional credibility to the business case. Finally, it is recommended to formalize and present the business case in a clear and didactic manner, using financial charts and tables to facilitate the understanding of key information. It is also essential to demonstrate conviction and confidence when presenting the business case, by highlighting the skills and qualifications of the business manager.

Winning Procurement Business Case Strategy: Detailed Plan, Solid Case, and Unwavering Conviction

To defend your purchasing business case, it is necessary to develop a detailed and realistic plan, taking into account all the key elements such as market research, financial plan, marketing strategy and competition. A solid argument, a clear presentation and an obvious conviction will be the keys to convincing potential funders and thus put all the chances on your side for the success of your business.

Purchasing Business Case

Is your “Purchasing Business Case” likely to succeed or fail?

Whether you are investing in technology, training, or new employees, Purchasing Departments need to build a” Business Case Purchases ” to convince General Management to finance a business project or a major purchase.

A “Business Case Purchasing” includes a description of the project, the amount to be invested, and the planned financing provision.

Having a “business case” does not guarantee the approval of your plans.

You will probably have to face a lot of questions and defend your case. Be ready!

Your alternatives with a fraction of the financing requested.

Even if they like your ideas, leaders may be allowed to spend only 70% of the money you offer.

How would you react if you were asked what could be achieved with 70% of the funding?

The time frame with which your profits will be increased.

With an initial investment, leaders want to know when they'll start to see financial benefits. What is the return on investment (VAN...)? It is when the financial benefits exceed the total investment.

But beware, many managers will not be able to expect a return on investment of more than 12 months.

The importance of timing.

Managers are obliged to differentiate between what the organization has to do today and what it can bring back for the manager himself in front of the shareholders. Can you state several scenarios over time with positive effects?

Multiple options for success.

Most leaders get to their level by making good decisions and like to think for themselves as good decision makers. So let them make a decision.

And don't just say “yes” or “no.” Give two or three recommendations and let them decide which is best.

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