Required skills

analytical skills to determine the viability of the business

literacy skills to interpret financial reports and to complete relevant forms requested by financial bodies

numeracy skills to calculate basic revenue and expense forecasts and to estimate the funding needed to establish and run the business

research skills to source financial information

Required knowledge

basic budgeting

basic costing for the business

financial commitments and requirements

financial reports and terminology

methods and relative costs of obtaining finance

own financial position

sources of advice and assistance

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

candidates 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

problemsolving scenario which requires candidate to assess the financial viability of a proposed micro business in candidates 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

BSBSMBA Develop a micro business proposal

BSBSMB302A Develop a micro business proposal

BSBSMBA Determine resource requirements for the micro business

BSBSMB304A Determine resource requirements for the micro business.

Personal, family or community financial situation may include:

Establishment costs may include:

Professional advice may include:

Sources of finance may include:

Financial viability may include: