Unit of competency details

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to develop an identified business idea, to research the feasibility of the business opportunity and to present a business idea in formats that suit a range of stakeholders.

Specific legal requirements apply to the management of a 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. Evaluate business opportunities

1.1. Identify and research key factors  that influence viability of business ideas

1.2. Analyse business ideas in terms of personal or family needs and commitments

1.3. Evaluate impacts of emerging or changing technology, including e-commerce, on the business

1.4. Determine viability of business opportunity in line with perceived risks, resources available, financial returns and other outcomes sought

1.5. Assess and match personal skills /attributes  against those perceived as necessary for a particular business opportunity

1.6. Identify and assess business risks  according to resources available and personal preferences

2. Detail the business idea

2.1. Develop an accurate description of the business idea  for key stakeholders 

2.2. Develop an accurate summary of the major products and /or services  required to suit personal needs and requirements

3. Prepare the business overview to suit different stakeholders

3.1. Present an accurate list of key stakeholders and their information requirements

3.2. Determine an acceptable method of presentation  of information for each stakeholder

3.3. Provide accurate customised information to target audiences

REQUIRED SKILLS AND KNOWLEDGE 

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

Required skills 

• analytical skills to assess personal attributes and to identify business risks, for example, to conduct a strengths, weaknesses, opportunities, threats (SWOT) analysis
• communication skills to present information in an appropriate format for the audience
• literacy skills to enable interpretation of business information
• numeracy skills to analyse data to aid research
• research skills to investigate the feasibility of a business opportunity.

Required knowledge 

• commonwealth, state/territory and local government legislative requirements relating to business operation, especially in regard to occupational health and safety (OHS) and environmental issues, equal employment opportunity, industrial relations and anti-discrimination
• income and expenditure costing
• regulations and codes of practice relevant to the business operation
• principles of risk assessment relevant to the business opportunity.

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:

• accurate and complete outline of the business idea that considers the major elements of:

• products/services
• customers
• operations and processes
• income and expenditure
• resources
• marketing
• location

• evaluation of research results and assessment of the likely viability and practicability of a business opportunity, taking into account the current business/market climate and resources available
• effective presentation of business idea and profile
• knowledge of relevant legislative requirements affecting business operation.

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 micro 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:

• oral or audio-visual presentation of business proposal, depending on the proposed stakeholder/s
• portfolio of evidence including an outline of the business idea, evaluation of viability based on research and presentation of the business idea in an appropriate format for the proposed stakeholder/s
• oral or written questioning to assess knowledge of regulations and codes of practice relevant to the business operation
• review of list of key stakeholders and their information requirements.

Guidance information for assessment 

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

• BSBSMB301A Investigate micro business opportunities.

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.

Key factors  may include:

• economy
• infrastructure requirements
• legal requirements and licensing
• market competition
• opportunities available

• resources and premises/location available
• risks related to a particular business opportunity, especially in regard to OHS and environmental considerations set up costs, time and effort
• skills available
• timing/cyclical considerations

Personal skills /attributes  may include:

• business knowledge and skills
• communication skills
• entrepreneurship
• financial knowledge and skills
• technical and/or specialist skills
• willingness to explore opportunities

Business risks  may be affected by and may include:

• cultural, community and/or family factors
• market competition
• market trends
• OHS and environmental considerations
• relevant legislative requirements
• resources available
• security of investment
• security of premises/location
• supply and demand

Accurate description of the business idea  includes:

• business type and location such as:

• specific aspects of type of business, for example newsagency, clothes retailing, toy manufacturing, tourism venture, heritage consultant
• type or field of business, for example consulting, manufacturing, retailing
• where the business will operate from

• overall purpose of the business general scope such as:

• address community or social justice objectives
• maximise profits and personal wealth
• provide employment opportunities for self, family or community members
• provide not-for-profit goods and services for the community
• retain linkages to land or locality

Accurate summary of the major products and /or services  includes:

• customer and market description such as:

• customer characteristics
• marketing issues to meet needs
• specialised needs of customers

• overall predicted costs including:

• capital
• distribution costs
• insurance
• maintenance
• overheads
• production costs
• supply costs

• overall predicted income such as:

• grants
• interest on investments
• loans
• supply or sales of products or services
• tax incentives

• processes or operations such as:

• how business might be structured
• what ethical or cultural principles and protocols will guide the running of the business
• what major activities the business will undertake

• resources such as:

• capital
• cultural knowledge
• equipment
• premises

• skills and abilities

Key stakeholders  may include:

• business and community members and organisations
• councils (local, land and other)
• customers
• Elders, traditional owners, native Title holders
• family members
• funding bodies/banks/lending institutions
• Indigenous, culturally and linguistically diverse organisations
• suppliers

Preparing the business overview  may mean determining:

• appropriate medium for presentation, such as oral or visual presentation, video, written documentation, developing a web page
• best style of presenting the information, such as using plain English, using first language, joint presentation with key stakeholders
• most suitable information to include in different versions of the overview
• order of information to best suit the needs and interests of the audience
• time and location that best suits the target audience needs and their importance

Method of presentation  includes:

• main characteristics of the method
• reasons for the method and any cultural considerations

Presentation  may be via:

• formal written business proposal
• oral or visual presentation
• video

Unit sector 

Competency field 

Management and Leadership - Small and Micro Business

Co-requisite units