Unit of competency
Modification History
Release |
Comments |
Release 1 |
This version first released with BSB Business Services Training Package Version 7.0. |
Application
This unit describes the skills and knowledge required to identify financial requirements of a business, including profit targets, cash flow projections and strategies to garner financial support.
The unit applies to those establishing a business providing self-employment, as well as those establishing a new venture as part of a larger organisation.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Unit Sector
Business Competence – Entrepreneurship and Small Business
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
Elements describe the essential outcomes. |
Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Prepare to plan finances |
1.1 Identify costs associated with production and delivery of business products and/or services 1.2 Set profit targets according to business venture requirements and workplace procedures 1.3 Calculate prices based on costs and profit targets, as a charge-out rate for labour or unit price for products and/or services 1.4 Calculate break-even sales point to assess viability of business venture 1.5 Evaluate and select pricing strategies in relation to market conditions to meet profit targets and according to workplace procedures 1.6 Prepare projected profit statement to supplement business plan |
2. Develop a financial plan |
2.1 Identify working capital requirements necessary to attain profit projections 2.2 Identify non-current asset requirements and consider alternative asset management strategies 2.3 Prepare cash flow projections to enable business operation according to business plan and legal requirements 2.4 Identify capital investment requirements accurately for each operational period 2.5 Select budget targets to enable ongoing monitoring of financial performance |
3. Plan to acquire finance |
3.1 Identify start-up and ongoing financial requirements according to financial plan and budget 3.2 Identify sources of finance for required liquidity according to business goals and objectives and workplace procedures 3.3 Research and assess cost of securing finance on optimal terms 3.4 Develop strategies to obtain finance as required to ensure financial viability of business venture |
Foundation Skills
This section describes those language, literacy, numeracy and employment skills that are essential to performance but not explicit in the performance criteria.
Skill |
Description |
Reading |
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Writing |
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Numeracy |
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Self-management |
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Unit Mapping Information
Supersedes and is equivalent to BSBSMB402 Plan small business finances.
Links
Companion Volume Implementation Guide is found on VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10