Business case guide FAQ > Business case definition > What's the difference between a business case and a business plan?
Search the glossary for business case terms often ill-defined, confused, or prone to misinformation:
Differences
- Subject scope. For a business case it is a project or initiative. For a business plan, it's a whole company or business unit.
- Model complexity. For a business case, you need a benefits model (who will use, what volume, and willingness-to-pay) and cost model. Users are usually just internal and there are no competitors. A business plan requires a full business model and the revenue model will face the full uncertainties of dealing with outside customers and competition.
Similarities
- Both have "top lines". For a business case, the top line is benefits from the initiative. For a business plan, the top line is expected revenue.
- Measure ROI in cash. Both cases and plans should ultimately be measured in cash flow. Use net present value and discounted cash flow for a business case. Use internal rate or return (IRR) for a business plan.
