Unit of competency Outline

Date retreived
22/07/2026 9:03 AM AWST

Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.

Organise finances for the micro business

Organise finances for the micro business

Unit of competency
National Code
BSBSMB303A
State Code
D1007
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
24/09/2008
View on TGA
State Implementation and Classification
Approved Date
06/11/2014
Field of Education
080301 - Business Management
Original Release Date
06/11/2014
Nominal Hours
50
Description
This unit describes the performance outcomes, skills and knowledge required to investigate the financial capacity to enter into a micro business, to determine the projected cash flow, to source finances and to monitor the profitability of the business.Specific legal requirements apply to the management of a micro business.
Notes
Elements and Performance Criteria
1. Ascertain own financial position and the ability to provide capital/equity for the business
  • 1.1. Realistically detail personal, family or community financial situation in terms of funds available and commitments already incurred
  • 1.2. Determine equity finance and assets available for micro business from personal, family or community sources
2. Determine projected cash flow for the business
  • 2.1. Determine the level of forecast business activity over a year and the business mix
  • 2.2. Estimate establishment costs for the business and repayment schedule for borrowings
  • 2.3. Calculate the monthly variable and fixed costs needed to conduct business activity over a year
  • 2.4. Estimate personal drawings needed to be taken from the business
  • 2.5. Estimate the monthly income generated by the business for a year based on price per unit item or hourly charge rate for labour
  • 2.6. Develop a cash flow budget for the first year of business operation
  • 2.7. Seek professional advice to estimate goods and services tax and operating finance required for the business
3. Source the required funds to establish the business
  • 3.1. Estimate required funding to establish and run the business based on expected sales and activity levels, available finances and commitments
  • 3.2. Investigate methods of accessing alternative sources of finance
  • 3.3. Identify strategies for meeting financial obligations
  • 3.4. Implement plans to access available funds as required
4. Monitor profitability of the business
  • 4.1. Maintain and review monthly expenditure and income records
  • 4.2. Compare equity at beginning and end of a year to estimate business performance
  • 4.3. Assess the financial viability of the business after a year of operation
  • 4.4. Seek professional advice on depreciation, insurance and tax implications of the 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.
Personal, family or community financial situation may include:
education and other expenses
equity available through capital, savings and assets
existing loan repayments and/or other debt repayments
family, community or cultural commitments and obligations
living expenses such as rent, food, clothing for self and family
Establishment costs may include:
capital equipment
insurance costs
purchase price
start-up costs
Professional advice may include:
accountants
business brokers/business consultants
government agencies
industry/trade associations
online gateways
mentors
Sources of finance may include:
banks and/or other finance providers
business finance
family or community equity
family or community loans/resources
government grants and other sources
personal equity
private capital
royalties
venture capital
Financial viability may include:
return on capital
return on labour
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:
investigation of own financial position and needs
investigation of projected cash flow for the business
estimation of the funding needed to establish and operate the business
assessment of the financial viability of the business
knowledge of basic budgeting.
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:
problem-solving scenario which requires candidate to assess the financial viability of a proposed micro business in candidate's geographical location; the scenario should include opportunities for the candidate to calculate expenses and commitments against expected income
oral or written questioning to assess knowledge of financial reports and terminology
review of estimated establishmentcosts for the business and repayment schedule for borrowings
review of plans implemented to access available funds.
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
BSBSMB304A Determine resource requirements for the micro business.
Replaced By
State Code National Code Title Type
AUG99 BSBSMB303 Organise finances for the micro business Unit of competency