Unit of competency details

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to determine the resource requirements of the micro business and to source these resources.

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. Identify the resources needed in the business

1.1. Use the business profile to determine the types of resources  that may be required in the business

1.2. Gather information regarding resource requirements , from appropriate sources

1.3. Determine resource quantities in accordance with business activity levels and financial position

2. Select appropriate sources for resources required in the business

2.1. Investigate different options for acquiring resources  needed in the business in terms of business profile and stakeholder needs

2.2. Determine reliability, risks and costs associated with these options in line with business projections

2.3. Determine ease of access to sources of service and support

2.4. Select suitable options as investigated

2.5. Establish relationships with suppliers and other key people

3. Prepare for the use of resources in the business

3.1. Design procedures and systems  to allow for the effective and efficient introduction, use and maintenance of resources

3.2. Negotiate and review arrangements for supply of resources to ensure the business profile is met

3.3. Design procedures for monitoring the use of resources

3.4. Develop procedures for the maintenance, support, repair and replacement of business machinery, equipment and software

REQUIRED SKILLS AND KNOWLEDGE 

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

Required skills 

• communication skills to negotiate contracts; to make initial and to maintain ongoing, contact with suppliers; to explain processes/procedures to contractors or employees (where relevant)
• literacy skills to produce simple instructions for a particular routine task
• numeracy skills to calculate resource/equipment expenditure
• research skills to investigate the resources needed for the business and options for acquiring them
• technology skills to select and use technology appropriate to a task.

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
• functions of a range of business equipment and machinery (including information technology/communications systems and software)
• organisation's business profile and structure
• procedures and systems for the use of and routine maintenance of resources
• types of resources that would be required as per the business profile.

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:

• knowledge of types of resources required by the business
• determining appropriate resource levels in line with business profile and desired profit
• selecting options for resource acquisition suited to the business and financial position
• developing procedures and systems to allow for the efficient and effective installation, use and maintenance of resources.

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 a case study requiring the candidate to determine resources needed to operate a specific micro business in a field and location relevant to the candidate
• portfolio of evidence including identified and required resources, and options for their acquisition
• oral or written questioning to assess knowledge of relevant legislation from all levels of government that affects small business operation
• review of resource quantities determined
• review of procedures developed for the maintenance, support, repair and replacement of business machinery, equipment and software.

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
• BSBSMB303A Organise finances for the micro business
• BSBSMB306A Plan a home-based 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.

Types of resources  may include:

• consumables
• equipment
• facilities
• human resources
• machinery
• materials
• software
• vehicles

Information regarding resource requirements  includes:

• costs
• delivery
• set up

Options for acquiring resources  may include:

• hiring
• leasing

• outsourcing
• purchasing

Procedures and systems  may include:

• budgeting limits and approval process
• delivery and receipt of stock and materials
• developing and monitoring resource contracts
• installation and support for IT/communications equipment and software
• installation of machinery and equipment
• maintenance and repair of machinery and equipment
• ordering of stock and materials
• recruitment, induction and supervision of personnel (employees or contractors)
• storage of stock and materials

Unit sector 

Competency field 

Management and Leadership - Small and Micro Business

Co-requisite units