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Unit of competency details

BSBSMB402 - Plan small business finances (Release 2)

Summary

Usage recommendation:
Superseded
Mapping:
MappingNotesDate
Is superseded by and equivalent to BSBESB403 - Plan finances for new business ventures 18/Oct/2020
Supersedes and is equivalent to BSBSMB402A - Plan small business financesUpdated to meet Standards for Training Packages 24/Mar/2015

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


Training packages that include this unit

CodeSort Table listing Training packages that include this unit by the Code columnTitleSort Table listing Training packages that include this unit by the Title columnRelease
ICP - Printing and Graphic ArtsPrinting and Graphic Arts 2.0-3.0,4.0 
SFI - Seafood IndustrySeafood Industry 1.0 
FBP - Food, Beverage and PharmaceuticalFood, Beverage and Pharmaceutical 1.0-4.1 
CPC08 - Construction, Plumbing and Services Training PackageConstruction, Plumbing and Services Training Package 9.3-9.7 
MSF - Furnishing Training PackageFurnishing Training Package 2.0-5.0 
CPP07 - Property Services Training PackageProperty Services Training Package 14.4-14.6 
FNS - Financial Services Training PackageFinancial Services Training Package 3.0-4.0 
AHC - Agriculture, Horticulture and Conservation and Land Management Training PackageAgriculture, Horticulture and Conservation and Land Management Training Package 1.0-1.1,2.0-3.0,4.0-5.0 
CUA - Creative Arts and Culture Training PackageCreative Arts and Culture Training Package 2.0-4.1 
CPP - Property Services Training PackageProperty Services Training Package 6.0-10.3 
RII - Resources and Infrastructure Industry Training PackageResources and Infrastructure Industry Training Package 3.0-5.0 
MST - Textiles, Clothing and FootwearTextiles, Clothing and Footwear 2.0-4.0 
BSB - Business Services Training PackageBusiness Services Training Package 2.0-6.1 
ACM - Animal Care and Management Training PackageAnimal Care and Management Training Package 2.0-3.0 

Qualifications that include this unit

CodeSort Table listing Qualifications that include this unit by the Code columnTitleSort Table listing Qualifications that include this unit by the Title columnRelease
SFL40115 - Certificate IV in FloristryCertificate IV in Floristry
BSB42615 - Certificate IV in New Small BusinessCertificate IV in New Small Business
CPP40719 - Certificate IV in Security ManagementCertificate IV in Security Management
FNS40217 - Certificate IV in Accounting and BookkeepingCertificate IV in Accounting and Bookkeeping
CPC40808 - Certificate IV in Swimming Pool and Spa BuildingCertificate IV in Swimming Pool and Spa Building
CPP40516 - Certificate IV in Strata Community ManagementCertificate IV in Strata Community Management1-3 
CUA40615 - Certificate IV in Aboriginal and Torres Strait Islander Cultural ArtsCertificate IV in Aboriginal and Torres Strait Islander Cultural Arts1-2 
MST50119 - Diploma of Applied Fashion Design and MerchandisingDiploma of Applied Fashion Design and Merchandising1-2 
CUA50513 - Diploma of Live Production DesignDiploma of Live Production Design2-4 
ACM40517 - Certificate IV in Equine DentistryCertificate IV in Equine Dentistry
CPP41519 - Certificate IV in Security Risk AnalysisCertificate IV in Security Risk Analysis1-2 
RII40715 - Certificate IV in Civil Construction SupervisionCertificate IV in Civil Construction Supervision1-3 
CUA60715 - Advanced Diploma of Visual ArtsAdvanced Diploma of Visual Arts1-2 
ICP50120 - Diploma of Printing and Graphic Arts Business ManagementDiploma of Printing and Graphic Arts Business Management
ICP50115 - Diploma of Printing and Graphic ArtsDiploma of Printing and Graphic Arts1-3 
MSF50118 - Diploma of Stained Glass and LeadlightingDiploma of Stained Glass and Leadlighting
ICP31220 - Certificate III in PrintingCertificate III in Printing
BSB42518 - Certificate IV in Small Business ManagementCertificate IV in Small Business Management
SIF40113 - Certificate IV in Funeral ServicesCertificate IV in Funeral Services
SFI40119 - Certificate IV in AquacultureCertificate IV in Aquaculture
CPC40912 - Certificate IV in Plumbing and ServicesCertificate IV in Plumbing and Services
HLT47815 - Certificate IV in Optical DispensingCertificate IV in Optical Dispensing
RII50920 - Diploma of Underground Coal Mining ManagementDiploma of Underground Coal Mining Management
CPC40110 - Certificate IV in Building and Construction (Building)Certificate IV in Building and Construction (Building)6-7 
CPP41212 - Certificate IV in NatHERS AssessmentCertificate IV in NatHERS Assessment
RII40115 - Certificate IV in Surface Extraction OperationsCertificate IV in Surface Extraction Operations1-4 
AHC42216 - Certificate IV in Shearing ContractingCertificate IV in Shearing Contracting1-2 
SHB50216 - Diploma of Salon ManagementDiploma of Salon Management
RII40915 - Certificate IV in Drilling OperationsCertificate IV in Drilling Operations1-2 
BSB42515 - Certificate IV in Small Business ManagementCertificate IV in Small Business Management
CUA50415 - Diploma of Live Production and Technical ServicesDiploma of Live Production and Technical Services1-3 
RII50915 - Diploma of Underground Coal Mining ManagementDiploma of Underground Coal Mining Management1-2 
CUA40415 - Certificate IV in Live Production and Technical ServicesCertificate IV in Live Production and Technical Services1-3 
MST60119 - Advanced Diploma of Applied Fashion Design and MerchandisingAdvanced Diploma of Applied Fashion Design and Merchandising1-4 
FBP40619 - Certificate IV in Artisan Fermented ProductsCertificate IV in Artisan Fermented Products
FBP30117 - Certificate III in Food ProcessingCertificate III in Food Processing
CUA40915 - Certificate IV in Music IndustryCertificate IV in Music Industry1-3 
CUA41215 - Certificate IV in Screen and MediaCertificate IV in Screen and Media
CPP40611 - Certificate IV in Property Services (Operations)Certificate IV in Property Services (Operations)
BSB40415 - Certificate IV in Small Business ManagementCertificate IV in Small Business Management
MSF50113 - Diploma of Stained Glass and LeadlightingDiploma of Stained Glass and Leadlighting
FBP50319 - Diploma of Artisan CheesemakingDiploma of Artisan Cheesemaking
ICP30415 - Certificate III in Printing and Graphic Arts (Digital Printing)Certificate III in Printing and Graphic Arts (Digital Printing)
CUA51215 - Diploma of CeramicsDiploma of Ceramics1-2 
FBP30217 - Certificate III in Plant BakingCertificate III in Plant Baking1-2 
SFL50115 - Diploma of Floristry DesignDiploma of Floristry Design
CPC40708 - Certificate IV in Building and Construction (Trade Contracting)Certificate IV in Building and Construction (Trade Contracting)
CPP40507 - Certificate IV in Property Services (Business Broking)Certificate IV in Property Services (Business Broking)
RII40920 - Certificate IV in Drilling OperationsCertificate IV in Drilling Operations
BSB42618 - Certificate IV in New Small BusinessCertificate IV in New Small Business
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Classifications

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 

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.

Application

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 and interpret financial data.

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

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

Foundation Skills

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

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

Unit Mapping Information

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

Links

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 

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.

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 financial 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 or 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
  • explain relevant accounting terminology
  • 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:

  • software for financial calculations
  • relevant legislation, regulations, standards and codes
  • relevant workplace documentation and resources
  • case studies or where possible, real situations.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.

Links

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