One-page business case template for a new revenue stream, with a data license example

What should a business case for a new revenue stream include?

A business case for a new revenue stream should fit on one page and answer six questions a board or owner will ask: what are we deciding, what are we offering, what do we already have, what will it take from our people, what could go wrong, and how will we know to stop. Everything else belongs in an appendix.

The template below works for any new revenue line. The filled example applies it to a data license, the case fractional CFOs meet when a client asks whether licensing its operational records to AI developers is worth pursuing. It draws on a metadata-only data inventory and makes no forecast it cannot support.

The one-page business case template

Copy the sections onto a single page. Replace each item in braces and keep every section to two or three lines.

Section 9 matters more than its length suggests. If you, as the fractional CFO, could receive a referral reward, say so on the page: a business case prepared by an interested party is acceptable when the interest is disclosed and the decision stays with the owner.

Filled example: a data license (Illustrative)

Illustrative and fictional. Company A is an invented regional distributor with 140 full-time employees at peak, twelve years of operating history and an owner thinking about a sale in four or five years. Nothing below describes a real company or deal.

The section 3 inputs come straight from the data inventory builder, which helps list systems and records without exporting anything.

Section 5 in practice: what a CFO can and cannot say about proceeds

The honest version of section 5 for a data license is short. Price is agreed with the company only after the inventory and terms are worked through, and nothing is binding until the company accepts a price and signs. Once a company is deal-ready, buyers typically respond within about two weeks. The company receives one all-in price with SourceX's fee included and no separate charges.

What the CFO cannot responsibly add is a number. Do not borrow figures from publicly reported deals between large content platforms and AI developers; their scale, data and terms bear no relation to a mid-sized operating company.

Section 6 in practice: risks that decide the case

The privacy row is not hypothetical. FTC staff have stated that companies' promises not to use customer data for undisclosed purposes, such as training or updating models, are enforceable whether they appear in privacy policies, terms of service or promotional materials. For how a license plays out in a later sale, see whether an exclusive data license gets in the way of selling the company.

Section 7 in practice: questions for the auditor

The accounting answer depends on how the license is structured, so put the question to the auditor early. Under ASC 606, an entity assesses whether a license of intellectual property gives the customer a right to access the IP over the license period or a right to use it as it exists when granted, which determines whether revenue is recognized over time or at a point in time; Deloitte's roadmap chapter on identifying the nature of a license sets out the analysis. The business case should record the question and who will answer it, not a guessed answer.

This is general information, not legal, tax or financial advice. Confirm with your own counsel, auditor and tax adviser before acting.

Go or no-go checklist

Every box should be ticked before the company commits to a license. An unticked box means pause and resolve, not necessarily stop.

• The company is a US business that reached 50+ full-time employees at peak (contractors excluded) and has several years of documented operations
• Counsel confirms the company holds the rights to license the records in scope
• The owner, CEO, CFO or another authorized representative sponsors the decision
• The owner accepts an exclusive AI-training license for an agreed term
• A named person can export each system in scope
• De-identification and redaction rules are agreed before any work begins
• The license fits the owner's sale or financing timeline
• The auditor and tax adviser have answered the section 7 questions

How to adapt the business case to its audience

The guide on presenting a data licensing opportunity to a board covers the meeting itself, and the CFO checklist for evaluating a data licensing agreement takes over once terms arrive.

What never goes in the business case

• A price estimate, revenue forecast or payment date without a basis
• Names of AI companies as likely buyers
• Samples of the company's records, even redacted ones
• Reward amounts, or a referral reward described as anything other than a share of SourceX's fee
• Promises that the company will qualify or that a deal will close

How the referring CFO's reward works

If you introduce the company as a SourceX partner, you earn 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals, capped at $100,000 per referred company. The reward becomes payable only after the buyer pays and SourceX receives its fee; it is never deducted from what the company receives, and no reward is guaranteed. Check your professional rules and client agreements on referral compensation before you register.

Next step

Screen the client with the company fit checker first, so the business case starts from a company that meets the baseline. Then register as a partner and introduce the company once the owner agrees. The page on referral opportunities for fractional CFOs covers the wider role.