Release 

Comments 

Release 2

This version released with BSB Business Services Training Package Version 2.0.

Version created to clarify intent of unit

Release 1

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

ELEMENT 

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 business products and 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 or 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

Skill 

Performance 

Criteria 

Description 

Reading

1.1, 1.5, 2.1-2.5, 3.1, 3.2

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

Writing

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 tone and language suitable to audience

Numeracy

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

2.4

• 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 complex activities, including implementing and monitoring 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

Code and title  

current version 

Code and title 

previous version 

Comments 

Equivalence status 

BSBSMB402 Plan small business finances Release 2

BSBSMB402 Plan small business finances Release 1

Updated to clarify intent

Equivalent unit

Release 

Comments 

Release 2

This version first released with BSB Business Services Training Package Version 2.0.

Version created to clarify intent of unit

Release 1

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