Business Requirements Document (BRD): What is it & How to Write? (Steps Included)

Any successful project requires a well-thought-out action plan. The action plan usually involves details about what needs to be done, by whom, and what the desired outcome will look like. This is why managers often turn to documents called Business Requirements Document or BRD to get the job done.

A business requirements document (BRD) is a manager’s best friend as it provides a guiding hand to the team and assists its successful implementation. However, creating a business requirements document (BRD) can be a bit intimidating.

Collaborating with teammates, conducting the research, gathering requirements, sharing project assets, and reporting progress, can all quickly result in a chaotic mess. Using a documentation and collaboration tool can significantly reduce the effort required to create such documents and work with your team smoothly

Before we introduce you to our awesome document collaboration software, let’s take a quick look at what exactly is a business requirements document and what are the things one needs to include in these documents. Read on…

What is a Business Requirements Document (BRD)? (Definition)

A Business Requirements Document (BRD) describes in detail the business solution for the project as per business/customer/client’s needs and requirements. It includes the purpose of starting the project, what business solution does it provides, the purpose behind doing the project, its features and functionalities, and its timeline of completion.

All in all, it describes an overall concept of what the team is about to work on and what the final output will and should look like as per business needs and requirements.

Before the commencement of a project, there’s a lot of research that takes place into mapping out its overall structure, requirements, features, limitations, and more. This is why managers often start their project development with a business requirements document.

Why are Business Requirements Documents (BRD) Important?

Without a map or guide, it’s almost impossible to travel to a new city or location. Similarly, in the world of business, it’s impossible to successfully execute a project without having proper documentation and requirements in place.

A Business requirements document (BRD) is thus created before the project starts in order to get every stakeholder on the same page regarding what the project entails and what the final product will look like.

Creating a project scope document prior to the commencement of a project is crucial to make sure the team and other stakeholders are on the same page. All the parties involved in the project should have the same vision concerning the project- its goals, budget, and deliverables- so that there’s no doubtfulness and no expensive do-overs at the end.

By documenting every business need beforehand- objectives, requirements, timelines, deliverables, task allocations, etc. everyone knows exactly what needs to be done, why it’s essential, and when to get it completed.

Such documents are used as a communication tool by managers to share intricate details of the project and ensure that all expectations are met regarding the deliverables.

All in all, a business requirements document:

• Gives a complete overview of a new project or business plan, keeping everyone on the same page regarding what is expected of them and what the final product will look like
• Gathers requirements prior to project execution to ensure all client expectations are met and there’s no confusion or do-overs.
• Gives a roadmap managers can use to allocate work and budget accordingly.
• Keeps everyone focussed on the objectives.

Read more: Product Requirements Document: What, Why & How to Create?

How to Write Business Requirements Document (BRD)? Follow these Steps!

Every business project is unique depending on its opportunity, requirements, budget, timeline, etc. However, the basic structure of every business requirement document remains the same. Here are a few key elements that should be included in your business requirements document:

How to Write a Business Requirements Document (BRD)? Follow these Steps!

Step 1: Define the Project Scope

The first step in creating a Business Requirements Document (BRD) is to clearly define the project’s scope. This means outlining exactly what the project will and will not include. It’s like setting boundaries for a garden; you know what plants you want to grow and where the garden ends.

How to define the project scope:

• Project Objectives: Clearly state what the project aims to achieve. What problem does it solve or what opportunity does it capitalize on?
• Project Goals: Break down the objectives into specific, measurable goals. These goals should be realistic and achievable.
• Project Deliverables: Identify the end products or results of the project. What will be produced or created?
• Project Boundaries: Determine what is included and excluded from the project. This helps prevent scope creep (unplanned growth of the project).

Example:

If you’re creating a new online store, the scope might include developing a website, setting up payment gateways, and integrating inventory management. It would not include building a physical store or developing a mobile app (unless specifically included in the scope).

Step 2: Gather Stakeholder Requirements

Once you’ve defined what your project is about (Step 1), the next step is to figure out who is involved. These people are called stakeholders. Stakeholders are anyone who has an interest in the project. This could be people inside your company, like managers, employees, or customers, or people outside your company, like suppliers or partners.

Talking to the Right People: To gather stakeholder requirements, you need to talk to these people. You can do this through meetings, interviews, surveys, or even by observing how they work. The goal is to understand what they need and expect from the project.

What to Ask: When you talk to stakeholders, ask questions like:

• What problems are you facing right now?
• What do you hope this project will solve?
• What do you think would make your job easier?
• What information do you need to do your job effectively?
• What are your expectations for the project?

Listening is Key: It’s important to listen carefully to what stakeholders say. Don’t just think about your own ideas. Try to understand their perspective. Take notes during your conversations.

Documenting Everything: After you’ve talked to everyone, write down everything you’ve learned. This information will be used to create the rest of your Business Requirements Document (BRD).

Tip: Consider creating a stakeholder map to visualize who is involved and their level of influence.

Step 3: Document Business Objectives

Business objectives are clear, measurable goals that the project aims to achieve. They are not just tasks but the desired outcomes. For example, instead of saying “Improve customer service,” a business objective could be “Reduce average customer wait time by 20%.”

How to Document Business Objectives

1. Be Specific: Avoid vague or general statements. Use clear and concise language.
2. Measurable: Define how you will measure success. Use numbers or metrics.
3. Achievable: Set realistic goals based on available resources.
4. Relevant: Ensure the objectives align with the company’s strategic plan.
5. Time-bound: Establish a timeframe for achieving the objectives.

Example Business Objectives

• Increase online sales by 15% within the next quarter.
• Reduce operational costs by 10% through process automation.
• Improve customer satisfaction by 20% as measured by NPS.

Additional Tips

• Prioritize Objectives: Not all objectives are equally important. Rank them based on impact.
• Align with Stakeholders: Ensure objectives resonate with key stakeholders.
• Use SMART Goals: This framework (Specific, Measurable, Achievable, Relevant, Time-bound) can be helpful.
• Review Regularly: Objectives may change over time. Review and update as needed.

Step 4: Detail Functional Requirements

Think of functional requirements as a detailed shopping list for your project. They describe the features and capabilities the system must have. For example, if you’re building an e-commerce website, functional requirements might include features like adding items to a cart, processing payments, and tracking orders.

How to Detail Functional Requirements:

1. Identify Functions: Start by listing all the specific functions the system must perform. This can be done by breaking down the business objectives into smaller, actionable steps.
2. Define Inputs and Outputs: For each function, specify what information the system needs to receive (inputs) and what information it should produce (outputs). For example, for an online order, the input might be product information, customer details, and payment information, while the output would be an order confirmation.
3. Describe Processes: Explain how the system should process the inputs to produce the desired outputs. Use clear and concise language to describe the steps involved.
4. Specify Conditions: Define any conditions or rules that govern the system’s behavior. For instance, if there’s a specific discount for bulk orders, outline the conditions that trigger the discount.
5. Use Clear and Consistent Language: Ensure that the language used is easy to understand for both technical and non-technical stakeholders. Avoid jargon and technical terms that might confuse readers.
6. Provide Examples: Use examples to illustrate the functional requirements. This can help to clarify the expectations and prevent misunderstandings.

Example of Functional Requirements: For an online e-commerce store:

• The system shall allow users to search for products by name, category, or price.
• The system shall display product details, including images, descriptions, and prices.
• The system shall enable users to add products to a shopping cart and remove items as needed.
• The system shall calculate order totals, including shipping and taxes.
• The system shall provide multiple payment options (credit card, debit card, digital wallets).

Importance of Detail

The level of detail in functional requirements is crucial. Sufficient detail ensures that the development team has a clear understanding of what is expected, preventing misunderstandings and reducing the likelihood of changes later in the project. However, avoid overwhelming the document with excessive detail. Focus on the essential functions and their core components.

Step 5: Specify Non-Functional Requirements

While functional requirements define what a system should do, non-functional requirements (NFRs) describe how a system should perform. They are the qualities that make a system usable, reliable, and efficient.

Identifying Non-Functional Requirements:

To identify NFRs, consider the following aspects:

• Performance: How fast should the system respond? What is the expected load capacity?
• Security: What level of security is required? How will data be protected?
• Usability: How easy is the system to use? What is the target user group?
• Reliability: How often should the system be available? What is the recovery time in case of failures?
• Maintainability: How easy is it to update or modify the system?
• Portability: Can the system run on different platforms or devices?
• Scalability: Can the system handle increased workload or data volume?
• Compatibility: Does the system work with other systems or software?

Documenting Non-Functional Requirements: Once you’ve identified the NFRs, document them clearly and concisely. Use specific and measurable terms whenever possible. For example, instead of saying “the system should be fast,” specify “the system response time should be less than 2 seconds.”

Prioritizing Non-Functional Requirements: Not all NFRs are equally important. Prioritize them based on their impact on the business objectives. Some NFRs might be critical for the system’s success, while others might be nice-to-have features.

Example of Non-Functional Requirements

• The system must be available 99.9% of the time.
• The system must be able to handle 10,000 concurrent users.
• The system must comply with all relevant data protection regulations.
• The system user interface must be intuitive and easy to navigate.

Step 6: Include Use Cases and Scenarios

Use cases are descriptions of how users will interact with a system to achieve specific goals. They outline the steps involved from a user’s perspective. Scenarios, on the other hand, are specific examples of how a use case might play out in different situations.

Creating Effective Use Cases: To create effective use cases, follow these steps

1. Identify Actors: Determine who will interact with the system (e.g., customers, employees, administrators).
2. Define Goals: Clearly state what the user wants to achieve.
3. Outline Steps: Describe the sequence of actions the user will take.
4. Specify Preconditions: List any conditions that must be met before the use case can start.
5. Identify Postconditions: Describe the expected outcome of the use case.
6. Consider Alternative Flows: Outline possible variations or exceptions to the main flow.

Example: If you’re developing an online shopping system, a use case might be “Purchase Product.” Scenarios could include a successful purchase, a purchase with a discount code, or a failed purchase due to insufficient funds.

Step 7: Review and Validate the Document

The final stage in crafting a Business Requirements Document (BRD) is to meticulously review and validate its content. This critical step ensures clarity, accuracy, and alignment with the project’s objectives.

Begin by conducting a thorough self-review of the document. Scrutinize the language for clarity and conciseness. Verify the consistency of information throughout the document. Confirm that all essential elements, such as business objectives, functional and non-functional requirements, and use cases, are comprehensively covered.

Once the initial self-assessment is complete, it’s time to involve key stakeholders. Share the BRD with individuals from various departments who will be impacted by the project. Their perspectives are invaluable in identifying potential oversights or areas for improvement.

To effectively gather feedback, schedule meetings or distribute the document for review. Encourage stakeholders to provide detailed comments and suggestions. Actively listen to their input and incorporate their feedback into the document where appropriate.

Implement a version control system to maintain a clear record of changes. This allows you to track modifications made to the BRD over time. Version control is crucial for understanding the evolution of requirements and resolving any discrepancies.

The review process culminates in obtaining formal approval from key stakeholders and project sponsors. This signifies the document’s acceptance as the official foundation for the project. A formally approved BRD provides a shared understanding of the project’s goals and requirements, minimizing the risk of misunderstandings and project deviations.

Remember, a BRD is a dynamic document that may require updates as the project progresses. Continuous review and validation are essential to ensure its alignment with the project’s evolving needs. By diligently following these steps, you can create a BRD that serves as a robust roadmap for project success.

Read more: How to Write a Business Case: Step By Step Guide

Collaborate on Business Requirements Document (BRD) with Bit

Ready to create your business requirement document? Well, we have got the perfect tool for you!

Bit.ai is a new age online document collaboration tool that helps anyone create awesome BRDs, instruction or training manuals, project plans, and other company documents in minutes. Bit makes the entire documentation process easy by allowing team members to chip in and get work done quickly.

Providing a commonplace for employees to collaborate and manage projects, Bit makes information sharing smooth as butter! With a built-in content library, store all project assets – images, files, videos, and more under one roof, and access them whenever you like.

Here are some key reasons to use Bit to create business requirements document (BRD):

1. Collaborate with peers in real-time.
2. Create interactive BRDs by embedding PDFs, Excel sheets, Google Drive files, Airtable blocks, charts, graphs, and more inside your documents.
3. Get feedback from managers using @mentions and highlight features as every document comes with a separate comment stream.
4. Create, share, and store documents related to the project in one place without going back and forth to your cloud storage services or email inbox.
5. Use amazing templates to Fastrack your work.
6. Share documents with clients, partners, and other external stakeholders, and get engagement insights via document tracking.

Read More: 24 Bit.ai Integrations to Make your Documents Powerful!

Few business templates by bit.ai you might be interested in:

• SWOT Analysis Template
• Scope of Work Template
• Business Plan Template
• Status Report Template
• Competitor Research Template
• Training Manual Template
• Project Proposal Template
• Company Fact Sheet
• Executive Summary Template
• Operational Plan Template
• Pitch Deck Template

Best Practices for Writing a Business Requirements Document (BRD)

Here are some tips to keep in mind while writing your business requirements document:

1. Gather requirements carefully: Make sure you have proper systems in place to gather business requirements effectively. These requirements form the base for your entire project and are thus, of utmost importance. Use tools like brainstorming, surveys, polls, interviews, workshops, and more to gather requirements comprehensively.
2. Don’t rush into creating your BRD: Give yourself an ample amount of time to create a BRD. Without having proper documentation and a roadmap, your project is likely to fail. Don’t rush into it.
3. Welcome suggestions: When collaborating with peers or brainstorming, be open to feedback and ideas. It will bring your team closer and provide different viewpoints to better execute the project
4. Prepare heavily: Your research while creating a business requirements document (BRD) should be well-versed and thorough. Preparation allows you to predict future challenges and face them head-on.
5. Be clear and concise: Since BRD’s are bound to belong and text-heavy, it helps if they are written in simple language for everyone to go through it quickly. Avoid any unnecessary jargon and keep in mind that everyone reading the doc will not be technically sound.
6. Research past projects: Researching past projects gives you a jumpstart on your documentation. You can quickly gouge the requirements of similar past projects and justify their existence in your current one. You can also see what worked and what didn’t, allowing you to avoid costly mistakes.
7. Collaborate: Use a document collaboration tool like Bit to bring your entire project team together and devise the BRD together. With everyone chipping in with their input, we’re sure your BRD would be nothing short of greatness!

Final Words

A business requirements document is an indispensable document that needs to be taken with utmost seriousness. Once you have carefully documented all project requirements and communicated the same to the stakeholders, you put your project in a great position to succeed.

So, what are you waiting for? Gather your team around and start creating your business requirements document (BRD) today! If you need any additional tips or want to learn more about how Bit can help your projects, feel free to tweet us @bit_docs. Good luck!

Further reads:

Business Documents: Definition, Types, Benefits & Steps to Create Them!

Software Requirements Document: Definition, Steps, and Template Included!

Business Report: What is it & How to Write it? (Steps & Format)

Market Requirements Document (MRD): What, Why, and How?

16 Best Business Tools Every Business Needs in 2022

How to Create a Product Plan the Right Way?

How To Write A Business Proposal?

Implementation Plan: What is it & How to Create it?

Procurement Management Plan: What, Why, and How to Create?