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Business Requirements Document: A Comprehensive Guide

Whether your project caters to a specific client or for performing technology selection in your department, a strong business requirements document can map out the process and determine your best routes for success.

To alleviate the writing process, we’ve compiled a comprehensive guide of business requirements document must-haves, tips and more!

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Business Requirements Document Guide

What This Article Covers

What Is a Business Requirements Document?

A business requirements document is a file that thoroughly details a project’s scope from start to finish and highlights features like stakeholders, constraints, cost-benefit analysis and more. This report is one of many essential project management tools.

Frankly, this document is a blueprint to guide you, your boss and other involved parties to a clear picture of what’s to come when developing specific proposals.

Some people may ask why it’s essential to create a business requirements document. Here are a few benefits of building this report:

  • Reduce Failures: A solid business requirements document template lets you plan jobs in detail to diminish failures and improve success rates.
  • Improve Collaboration: These documents allow coworkers and stakeholders to bridge the communication and collaboration gap by sharing and implementing effective feedback and suggestions.
  • Diminish Issues: A business requirements document allows you to provide constraints upfront, allowing others to offer solutions and prevent bottlenecks.

Template Sections

An exemplary business requirements document template has several sections to plan your project from start to finish thoroughly while also initiating effective project management phases and practices.

An Executive Summary

You want the executive summary to grab the reader’s attention and provide the project’s background and main points in two to three paragraphs. This section describes a problem and how this project will provide a solution.

Project Objectives

Establish goals and expected outcomes. Answer questions such as:

  • Who is this project intended for?
  • How will this job or service align with your company’s objectives?
  • What’s the endgame of this project?
  • How much time and effort is devoted to this project?

The specific, measurable, achievable, relevant and time-based (SMART) method can help you establish realistic goals for numerous business ventures.

Project Scope

Determine your scope to clarify what tasks need completion and how much work is required to finish the project from start to finish.

A practical scope also solidifies vital tasks and reduces scope creep. Scope creep is when requirements and jobs keep growing as you progress through the project lifecycle, either through internal miscommunication, disagreements, or a bad case of perfectionism.

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Key Stakeholders

Identify vital internal and external stakeholders, such as managers, product owners, developers, consultants and more. Perform a stakeholder analysis if you’re unsure of specific individuals.

Include each person’s name, position, department and duties for the specific project. Fleshing out this section as clearly as possible reduces confusion while raising accountability.

Project Constraints

Use this portion of the business requirements document to identify potential risks, such as budget, training, needed materials and more. This section can help stakeholders and colleagues determine solutions to rectify or work around these constraints.

For example, if the budget is limited, some stakeholders could perform fundraising activities — i.e., community bake sales, car washes, GoFundMe pages and more — to gain extra profit.

Cost-Benefit Analysis

Performing a cost-benefit analysis serves as an efficient project accounting tool to determine your ROI. You’ll understand if the outcome is greater than the expenses. If the ROI doesn’t pan out, you must consider redoing the project or scraping it altogether.

Schedule/Deadlines

Set up a timeline of tasks and due dates to ensure your project meets your deadlines. Mini-deadlines offer more discipline to fulfill essential duties.

You should also allot wiggle room if things don’t go as planned. Some mishaps include:

  • Raw material shortages/late deliveries.
  • Team members get sick or injured.
  • Inclement weather closes roads/causes massive power outages.
  • And more.

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How To Write Business Requirements Documents

After reviewing the critical components of this file, you’re probably wondering how to write business requirements reports. Don’t worry. We’ve got a few tips for how to write requirements.

Use Clear, Non-Jargon Language

Although jargon is impressive and noteworthy among colleagues, you want a report that details your project as clearly as possible. This report will go to several different stakeholders, and some may not fully understand the technical language.

However, if you must use jargon, have a short project glossary to define those terms. Keeping your reports as simple as possible diminishes confusion and misinterpretations.

Add Visuals

Flow charts, graphs, models and other visualizations can break up a text-heavy report. Appropriately placed graphics can improve abstract concept explanations. Drilling down datasets throughout your requirements section can also simplify tasks.

Perform Thorough Requirements Gathering

Understand your project’s features, vital tasks and more for better requirements gathering and building. Knowing these must-have details can help you write and understand your project scope.

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FAQs

What is a business requirements document?

A business requirements document is a report that thoroughly details a project’s scope from start to finish and highlights stakeholders, constraints, cost-benefit analysis and more. Essentially, it’s a detailed blueprint that proposes and explains a project.

What does a business requirements document template look like?

The essential must-haves for a business requirements document are:

  • An executive summary
  • Project objectives
  • Project scope
  • Key stakeholders
  • Product constraints
  • Cost-benefit analysis
  • Schedules and deadlines

What’s the difference between a business requirements document and a functional requirements document?

A business requirements document describes a project and why it’s necessary. A functional requirements document explains what’s needed to complete the project.

How do I create a business requirements document?

Some helpful tips for writing a business requirements document include:

  • Using clear, non-jargon language.
  • Adding visuals to break up text and better explain visuals.
  • Thoroughly gathering project requirements for your scope.
  • Identifying and using the right stakeholders.

Who should write a business requirements document?

Project managers and business analysts are usually in charge of writing a business requirements document.

Do you have business requirements examples?

Below are two examples of business requirements templates.

This business requirements example explains a technology blog and how it can educate current visitors, garner new clients and showcase merchandise.

A preview of Asana’s completed business requirements template. Source

Another example showcases essential and additional sections across numerous pages, such as a glossary, appendices, non-functional requirements, references and more.

An example of Smartsheet’s business requirements document template. Source

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Conclusion

A business requirements document is a building block that showcases a project’s necessary structure and needs for success.

Including sections like an executive summary, cost-benefit analysis, schedule/deadlines, and more saves time and shows stakeholders your dedication and meticulous attention to detail.

How has a business requirements document made a difference for your projects? Tell us in the comments!

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