business-case

name	business-case
type	workflow
family	workflow
rigor	full
description	Use when justifying investment, resource allocation, or strategic decisions with financial and logical reasoning to ensure positive ROI and alignment with long-term goals.
keywords	ROI, investment-thesis, business-model, financial-projection, cost-benefit-analysis, runway, burn-rate, capital-allocation, resource-justification
compatibility	Claude Code and compatible agent products
requires	["problem-framing"]
enhances	["pitch-deck","prd-writing"]
sources_pdf	["The Personal MBA (Kaufman)","High Growth Handbook (Gil)","Measure What Matters (Doerr)","Venture Deals (Feld)","The Psychology of Money (Housel)","Practical Portfolio Performance (Bacon)"]
sources_web	["First Round Review: Startup Resource Justification"]

Overview

This skill provides a rigorous framework for building an investment thesis. It forces the identification of explicit assumptions, calculation of ROI, and the simulation of worst-case scenarios to ensure that capital and resources are allocated only to initiatives with a clear path to "Sufficiency."

Iron Law

NO BUSINESS CASE WITHOUT EXPLICIT ASSUMPTIONS AND SENSITIVITY ANALYSIS Uncertainty is inherent in business, but failing to model it is a choice. A business case that assumes a single linear outcome is a fantasy. You must simulate "The Plan Not Going According to Plan."

State Machine

digraph business_case_flow {
    "Discovery: Objectives" [shape=doublecircle];
    "Step 1: Define Sufficiency & ROI" [shape=box];
    "Step 2: Map the 5 Parts" [shape=box];
    "Gate: Viable Economics?" [shape=diamond];
    "Step 3: Sensitivity Analysis" [shape=box];
    "Step 4: Audit Opportunity Cost" [shape=box];
    "Case Approved" [shape=doublecircle];

    "Discovery: Objectives" -> "Step 1: Define Sufficiency & ROI";
    "Step 1: Define Sufficiency & ROI" -> "Step 2: Map the 5 Parts";
    "Step 2: Map the 5 Parts" -> "Gate: Viable Economics?";
    "Gate: Viable Economics?" -> "Step 3: Sensitivity Analysis" [label="viable"];
    "Gate: Viable Economics?" -> "Step 1: Define Sufficiency & ROI" [label="failed"];
    "Step 3: Sensitivity Analysis" -> "Step 4: Audit Opportunity Cost";
    "Step 4: Audit Opportunity Cost" -> "Case Approved";
}

When to Use This Skill

• When requesting additional budget or headcount.
• When evaluating a potential new market entry.
• When deciding between two competing strategic paths.
• When an existing project is underperforming and needs a "worthwhile to continue" check.

When NOT to Use This Skill

• For minor tactical experiments (use A/B testing).
• For pure brand awareness tasks where direct ROI cannot be measured.

Core Process

Step 1: Define Sufficiency & ROI

Define the exact revenue, user, or outcome level at which the initiative becomes "worthwhile to continue."

• Projected ROI: Ratio of Net Profit to Total Investment.
• Runway & Burn: Calculate the monthly cash consumption and the time remaining until the next capital event. (Source: Kaufman, Ch. 5; Feld, Ch. 3)

Step 2: Map the 5 Parts of Business

Justify how the initiative addresses:

1. Value Creation: Which Economic Values (Speed, Efficacy, Status) are we satisfying?
2. Marketing: How will we reach the 95% mainstream market, not just early adopters?