Elements and Performance Criteria

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

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.