Unit of competency details

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to examine the issues around establishing a business in a home and to plan the workplace within a home environment.

Specific legal requirements apply to the management of a small or micro business.

Application of the unit 

This work will be undertaken by individuals who are establishing or operating a micro business providing for self employment.

Prerequisite units 

Employability skills 

This unit contains employability skills.

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

ELEMENT 

PERFORMANCE CRITERIA 

1. Determine the viability of basing a business in a home environment

1.1. Identify activities  that will be undertaken by the business and what facilities and workspace are needed

1.2. Identify what licences , permits , regulations or restrictions  apply to operating a home-based business

1.3. Identify the availability of services and infrastructure  to support the business

1.4. Calculate the costs of suitable fittings and equipment  for the business and any modifications required to existing facilities and infrastructure in the home

1.5. Determine access requirements of clients or delivery vehicles to the business premises

1.6. Identify insurance requirements for operation of the business in the home

2. Plan the workplace in a home environment

2.1. Prepare a floor plan or layout that meets the needs of the business and the home occupants

2.2. Prepare any concept plans for modifications to buildings or structures in accordance with local government requirements

2.3. Obtain approvals  from relevant authorities

2.4. Identify occupational health and safety (OHS) issues and develop procedures  to eliminate or minimise any risks

2.5. Design the workplace to provide appropriate client access and facilities  while retaining privacy for home occupants

2.6. Allocate adequate and secure space for business machinery, equipment and storage of materials

3. Minimise potential sources of conflict

3.1. Identify possible sources of conflict  with neighbours or home occupants

3.2. Develop protocols  for home occupants, visitors and clients to enable the business to successfully operate in the home environment

3.3. Prepare a work schedule that identifies business and personal activities 

3.4. Establish contingency plans for unanticipated events 

REQUIRED SKILLS AND KNOWLEDGE 

This section describes the skills and knowledge required for this unit.

Required skills 

• communication skills to clarify restrictions and approvals; to negotiate with neighbours, home occupants, trades people and suppliers; to formulate questions to obtain quotes
• literacy skills to understand and complete any relevant forms relating to a home-based business
• research skills to locate and access sources of information relating to restrictions/approvals for a home-based business.

Required knowledge 

• aspects of the business being proposed
• commonwealth, state/territory and local government legislative requirements relating to business operation, especially in regard to occupational health and safety (OHS) and environmental issues
• constraints of home-based businesses
• relevant services and infrastructure available.

EVIDENCE GUIDE 

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment 

Critical aspects for assessment and evidence required to demonstrate competency in this unit 

Evidence of the following is essential:

• identification of why the particular business is best established in the home
• identification and selection of useful strategies in planning the set up of a home-based business
• knowledge of constraints of home-based businesses.

Context of and specific resources for assessment 

Assessment must ensure:

• access to relevant documentation
• candidate's individual circumstances and work in the context of establishing or running a home-based business, are the basis for assessment.

Method of assessment 

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

• portfolio of evidence including floor layout and quotes for work
• oral or written questioning to assess knowledge of relevant legislation
• review of access requirements determined for clients or delivery vehicles to the business premises
• review of protocols developed for home occupants, visitors and clients
• analysis of contingency plans established for unanticipated events.

Guidance information for assessment 

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

• BSBSMB302A Develop a micro business proposal
• BSBSMB304A Determine resource requirements for the micro business.

RANGE STATEMENT 

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Activities  may include:

• any products produced by the business
• if the business includes only one aspect of a process
• if the business is an adjunct to something else

Licences , permits , regulations or restrictions  may include:

• funding agency restrictions
• local government regulations
• state/territory government environmental regulations/restrictions

Services and infrastructure  may include:

• disability access
• gas
• mobile phone coverage
• phone/internet access
• postal services
• power
• supply of materials and packaging
• vehicle access
• water

Fittings and equipment  may include:

• furniture desk, chairs, work benches
• hardware/software
• storage for example shelving, cabinets/freezers/machinery, shed

Approvals  may be needed from:

• body corporate (if rented unit) or owner (if the house is rented)
• public liability/WorkCover

Procedures  may include:

• verbal instructions
• visual images
• written signs

Client access and facilities  may include:

• dedicated area for consultation with clients/staff and /or display area
• entry
• parking
• signage
• toilets

Sources of conflict  may include:

• changes in home occupants' needs for space
• noise
• parking
• waste

Protocols  may include:

• informal understandings
• verbal instructions

Business and personal activities  may include:

• community and family responsibilities
• personal networking/mentoring

Unanticipated events  may include:

• attendance at events (community, family conferences, training)
• personal and/or family illness

Unit sector 

Competency field 

Management and Leadership - Small and Micro Business

Co-requisite units