Unit of competency details

BSBSMB402 - Plan small business finances (Release 1)


Usage recommendation:
Supersedes and is equivalent to BSBSMB402A - Plan small business financesUpdated to meet Standards for Training Packages 24/Mar/2015

Release Status:
ReleaseRelease date
(View details for release 2) 14/Jan/2016
1 (this release) 25/Mar/2015

Replaced release

You are currently viewing the components related to release 1.
The current release is release 2View release 2 details.

Training packages that include this unit

CodeTitleSort Table listing Training packages that include this unit by the Title columnRelease
SIF - Funeral ServicesFuneral Services 2.1 
SHB - Hairdressing and Beauty Services Training PackageHairdressing and Beauty Services Training Package 2.0-3.0 
SFL - Floristry Training PackageFloristry Training Package 1.0 
RII - Resources and Infrastructure Industry Training PackageResources and Infrastructure Industry Training Package 2.0 
ICP - Printing and Graphic ArtsPrinting and Graphic Arts 1.0-1.1 
HLT - HealthHealth 2.0-4.2 
CPP - Property Services Training PackageProperty Services Training Package 4.0-5.0 
BSB - Business Services Training PackageBusiness Services Training Package 1.0-1.2 

Qualifications that include this unit

SIF40113 - Certificate IV in Funeral ServicesCertificate IV in Funeral Services
SHB50216 - Diploma of Salon ManagementDiploma of Salon Management
SFL50115 - Diploma of Floristry DesignDiploma of Floristry Design
SFL40115 - Certificate IV in FloristryCertificate IV in Floristry
SFI40119 - Certificate IV in AquacultureCertificate IV in Aquaculture
RII50915 - Diploma of Underground Coal Mining ManagementDiploma of Underground Coal Mining Management1-2 
RII50115 - Diploma of Surface Operations ManagementDiploma of Surface Operations Management
RII40915 - Certificate IV in Drilling OperationsCertificate IV in Drilling Operations1-2 
RII40715 - Certificate IV in Civil Construction SupervisionCertificate IV in Civil Construction Supervision1-2 
RII40115 - Certificate IV in Surface Extraction OperationsCertificate IV in Surface Extraction Operations1-3 
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Accredited courses that have this unit in the completion mapping


SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 080301 Business Management  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 080301 Business Management  30/Jul/2015 
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Unit Of competency

Modification History



Release 1

This version first released with BSB Business Services Training Package Version 1.0.


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.

It applies to individuals who operate a small business or work within an existing micro or small businesses or in a department of a larger organisation. Individuals in this role interpret financial data competently and are skilled communicators.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

Unit Sector

Management and Leadership – Small and Micro Business

Elements and Performance Criteria



Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Identify costs, calculate prices and prepare profit statement

1.1 Identify and document costs associated with production and delivery of the business’ products/services

1.2 Calculate prices based on costs and profit margin, as an hourly charge-out rate for labour or unit price for products

1.3 Calculate break-even sales point to establish business viability and profit margins

1.4 Identify appropriate pricing strategies in relation to market conditions to meet business profit targets

1.5 Prepare projected profit statement to supplement the business plan

2. Develop a financial plan

2.1 Set profit targets/goals to reflect owner’s desired returns

2.2 Identify working capital requirements necessary to attain profit projections

2.3 Identify non-current asset requirements and consider alternative asset management strategies

2.4 Prepare cash flow projections to enable business operation in accordance with business plan and legal requirements

2.5 Identify capital investment requirements accurately for each operational period

2.6 Select budget targets to enable ongoing monitoring of financial performance

3. Acquire finance

3.1 Identify start-up and ongoing financial requirements according to financial plan/budget

3.2 Identify sources of finance, including potential financial backers, to provide required liquidity for the business to complement business goals and objectives

3.3 Investigate cost of securing finance on optimal terms

3.4 Identify strategies to obtain finance as required to ensure financial viability of the business

Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.






1.1, 1.5, 2.1-2.5, 3.1, 3.2

  • Identifies, analyses and evaluates complex information from a range of sources


1.1, 1.5, 2.1, 2.4, 3.2

  • Prepares written reports and workplace documentation that communicate complex information clearly and effectively

Oral Communication

1.1, 3.2

  • Uses specific and relevant language to secure finance and uses questioning and listening techniques to clarify outcomes
  • Participates in verbal negotiations using language suitable to audience


1.1-1.5, 2.1, 2.2, 2.4-2.6, 3.1, 3.3, 3.4

  • Analyses numerical information to determine costs, prices, profit and losses, and other financial data

Navigate the world of work


  • Appreciates implications of legal and regulatory responsibilities related to own work

Get the work done

1.1, 1.4, 2.1-2.3, 2.5, 2.6, 3.1, 3.2, 3.4

  • Sequences and schedules tasks required to implement and monitor financial strategies
  • Makes a range of critical and non-critical decisions in relatively complex situations, taking a range of constraints into account, making adjustments as necessary
  • Regularly uses formal thinking techniques to generate new ideas

Unit Mapping Information

Code and title  

current version 

Code and title 

previous version 


Equivalence status 

BSBSMB402 Plan small business finances

BSBSMB402A Plan small business finances

Updated to meet Standards for Training Packages

Equivalent unit


Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10


Assessment requirements

Modification History



Release 1

This version first released with BSB Business Services Training Package Version 1.0.

Performance Evidence

Evidence of the ability to:

  • develop a financial plan which identifies financial requirements of the business, including cash flow projections and a projected profit statement
  • follow the business plan, including:
  • demonstrating an awareness of appropriate legal requirements
  • implementing strategies to monitor financial performance
  • identify sources and investigate costs of securing appropriate financial assistance.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

  • explain break-even analysis
  • clarify costing for the business, including margin/mark-up, hourly charge-out rates and unit costs
  • summarise financial decision-making relevant to the business
  • outline methods and relative costs of obtaining finance
  • summarise principles for preparing balance sheets
  • provide a detailed explanation of:
  • principles for preparation of cash flow forecasts
  • principles for preparation of profit and loss statements
  • purpose of financial reports
  • describe working capital cycles.

Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the Management and Leadership – Small and Micro Business field of work and include access to:

  • office equipment and resources for financial calculations
  • relevant workplace documentation
  • case studies and, where possible, real situations
  • interaction with others.

Assessors must satisfy NVR/AQTF assessor requirements.


Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10