Finding financial justification for your project
There are a few things to consider when conducting a thorough financial analysis of your project. It not only makes all project costs visible, but it also explains why you need to include them in your budget. The same principle applies to the future value that your business case can provide. Always plan 3 years ahead of time, and consider the costs of maintaining dashboards and reports. The majority of the benefits will be quantitative (in euros/dollars), but some will be qualitative. Those details must be included in your business case!
We’ll guide you through a financial analysis of a project and how to build a cost argumentation in this chapter. The following are the elements of a financial analysis:
- One-time project costs
- Yearly recurring costs
- The quantitative benefits
- The quantitative analysis (benefits minus the costs)
In the next example, we will guide you through a financial analysis for...
