How to Make a Business Case for Capital Projects

Do you have capital projects that need funding? Here’s how to make a business case to get the budget you need.  

Facility management departments are often seen as cost centers. As a result, it can be hard to get more money to make improvements. The business case needs to demonstrate how the proposed investment will improve efficiency or reduce future costs. 

In this video, Dan Weltin, editor-in-chief of the Facility Market sits down with Andy Gager, CEO of AMG International Consulting, to discuss best practices for making a sound business case for capital projects. Gager breaks down the three documents he likes to use when making a pitch for project improvements.  

Facility managers need to address risks in their documentation to show that the improvements will progress in a timely matter. In addition, upper management and the C-suite are always concerned about spending, so it’s critical to prove a solid return on investment (ROI). Without ROI, no project will ever get off the ground.  

In this video you’ll learn:  

• The No. 1 thing that grabs management's attention when making a business case for projects. 0:20 
• Presenting initial costs and long-term savings. 1:45 
• How to present alternatives in your business case, for example, a most-expensive ideal scenario vs lower-cost alternative. 2:33 
• The personnel from the facility management team who should be involved in making the business case for projects. 3:18 

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