Unit of competency details

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to research and develop an integrated business plan for achieving business goals and objectives.

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

Application of the unit 

This work is undertaken by individuals who operate a small business.

This unit is suitable for micro and small businesses or a department in a larger organisation.

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 elements of the business plan

1.1. Identify purpose of the business plan 

1.2. Identify and review the essential components of the business plan

1.3. Identify and document business goals and objectives  as a basis for measuring business performance

2. Develop a business plan

2.1. Research resources, legal and compliance requirements, specifically in relation to occupational health and safety  (OHS ), in accordance with business goals and objectives

2.2. Research market needs, and market size and potential

2.3. Identify sources and costs of finance, from the financial plan , to provide required liquidity and profitability for the business

2.4. Identify methods, from the marketing strategies , to promote the market exposure of the business

2.5. Identify methods/means of production/operation from the production /operations plan  to conform with business goals and objectives

2.6. Identify staffing requirements  to effectively produce/deliver products/services

2.7. Identify specialist services  and sources of advice, where required, and cost in accordance with resources available

3. Develop strategies for minimising risks

3.1. Identify specific interests and objectives of relevant people  and seek and confirm their support of the planned business direction

3.2. Identify and develop risk management strategies  according to business goals and objectives, and relevant legal requirements

3.3. Develop contingency plan  to address possible areas of non-conformance with the plan

REQUIRED SKILLS AND KNOWLEDGE 

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

Required skills 

• communication skills to assess business performance
• literacy skills to enable interpretation of business information
• numeracy skills to analyse data.

Required knowledge 

• commonwealth, state/territory and local government legislative requirements relating to business operation, especially in regard to OHS and environmental issues, equal employment opportunity, industrial relations and anti-discrimination
• methods of evaluation
• OHS responsibilities and procedures for identifying hazards relevant to the business
• planning processes
• preparation of a business plan
• principles of risk management relevant to business planning
• reasons for and benefits of, business planning
• relevant industry codes of practice
• setting goals and objectives
• types of business planning - feasibility studies; strategic, operational, financial and marketing planning.

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:

• development of a business plan which provides for finance, marketing and provision of products/services to facilitate the business goals and objectives
• identification of and planning for, OHS and duty of care responsibilities
• development of risk management strategies
• knowledge of relevant legislation.

Context of and specific resources for assessment 

Assessment must ensure:

• access to relevant documentation
• candidate's individual circumstances and work in the context of running a small 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 a business plan and risk management strategies
• oral or written questioning to assess knowledge of OHS responsibilities and procedures for identifying hazards relevant to the business
• demonstration of practical skills
• review of documented business goals and objectives
• review of contingency plans developed to address possible areas of non-conformance with the business plan.

Guidance information for assessment 

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

• BSBSMB401A Establish legal and risk management requirements of small business
• BSBSMB402A Plan small business finances
• BSBSMB403A Market the small 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.

Business plan  may include:

• business opportunities, which may be influenced by:

• amount and types of finance available
• expected financial viability
• skills of operator

• details of ownership/management
• finance, expenditure statement, balance sheet and cash flow forecast, projections for the initial years of operation assumptions underlying the business plan, expected level of inflation and taxation, expected trend of interest rate, capital expenditure and its timing, stock turnover, debtors collection period, creditor payment period, return on investment
• level of risk involved, risk assessment and management
• market focus of the business
• marketing requirements
• need to raise finance and requirements of lenders
• organisation/operational arrangements
• proposed size and scale of the business
• recognition of any seasonal or cyclical (time-based) elements which are crucial to the success of the business
• resources required and available
• sources of funding
• specialist services and sources of advice that may be required
• staffing
• stages in the business development

Business goals and objectives  may include:

• customer needs/marketing projections
• family or community benefits
• financial projections
• goals, objectives, plans, systems and processes
• lifestyle issues
• market focus of the business
• proposed size and scale of the business
• short-, medium- or long-term goals
• social responsibility

Occupational health and safety issues  must include:

• identification of specific hazard issues such as occupational violence, security, manual handling, equipment and hazardous substances
• management of the organisation and operation of OHS as part of the business plan
• procedures for managing hazards in the workplace (identify, assess and control)
• provisions for ensuring safety of members of the public and contractors visiting the premises/worksite

Financial plan  may include:

• analysis of sales by product/service, identifying where they were sold and to whom
• cash flow estimates for each forward period
• current financial state of the enterprise (or owner/operator)
• estimates of profit and loss projections for each forward period
• financial performance to date (if applicable)
• likely return on investment
• monthly, quarterly or annual returns
• non-recurrent assets calculations
• profit, turnover, capital and equity targets
• projected profit targets, pricing strategies, margins
• projections of likely financial results (budgeting)
• projections, which may vary depending on the importance of such information and the stage in the life of the business
• resources required to implement the proposed marketing and production strategies (staff, materials, plant and equipment)
• review of financial inputs required (sources and forms of finance)
• risks and measures to manage or minimise risks
• working, fixed, debt and equity capital

Marketing strategies  may include:

• achieving lower costs of production and distribution than competitors
• creating a very different product line or service so that the business becomes a class leader in the industry
• distribution
• pricing, presentation and display of products/services
• product design and packaging
• product range and mix
• promotion and advertising
• pursuing cost leadership and/or product differentiation within a specialist market segment

Production /operations plan  may include:

• customer requirements, market expectations, budgetary constraints
• industrial relations climate and quality assurance considerations
• means of supply and distribution
• operational targets and action plan, which may include short-, medium- or long-term goals
• options for production, delivery, technical and customer service and support

Staffing requirements  may include:

• full-time, part-time staff, permanent, temporary or casual staff
• owner/operator
• sub-contractors or external advisers/consultants

Specialist services  may include:

• accountants
• business advisors and consultants
• business brokers
• contractors
• government agencies
• industry/trade associations
• lawyers and providers of legal advice
• mentors
• online gateways

Relevant people  may include:

• clients
• family members
• franchise agency
• owner/operator, partners, financial backers
• regulatory bodies
• suppliers
• trade or industry associations

Risk management strategies  may include:

• breach of contract, product liability
• knowledge management
• measures to manage risk including professional indemnity, securing appropriate insurance to cover loss of earnings through sickness/accidents, drought, flood, fire, theft
• security systems to provide physical security of premises, plant, equipment, goods and services
• security of intellectual property

Risk management strategies  must include:

• OHS requirements

Contingency plan  may include:

• disturbances to cash flow, supply and/or distribution
• sickness or personal considerations

Unit sector 

Competency field 

Management and Leadership - Small and Micro Business

Co-requisite units