This work will be undertaken by individuals who are establishing or operating a micro business providing for self employment.

ELEMENT

PERFORMANCE CRITERIA

1. Evaluate business opportunities

1.1. Identify and research key factors that influence viability of business ideas

1.2. Analyse business ideas in terms of personal or family needs and commitments

1.3. Evaluate impacts of emerging or changing technology, including e-commerce, on the business

1.4. Determine viability of business opportunity in line with perceived risks, resources available, financial returns and other outcomes sought

1.5. Assess and match personal skills/attributes against those perceived as necessary for a particular business opportunity

1.6. Identify and assess business risks according to resources available and personal preferences

2. Detail the business idea

2.1. Develop an accurate description of the business idea for key stakeholders

2.2. Develop an accurate summary of the major products and/or services required to suit personal needs and requirements

3. Prepare the business overview to suit different stakeholders

3.1. Present an accurate list of key stakeholders and their information requirements

3.2. Determine an acceptable method of presentation of information for each stakeholder

3.3. Provide accurate customised information to target audiences

Required skills

analytical skills to assess personal attributes and to identify business risks, for example, to conduct a strengths, weaknesses, opportunities, threats (SWOT) analysis

communication skills to present information in an appropriate format for the audience

literacy skills to enable interpretation of business information

numeracy skills to analyse data to aid research

research skills to investigate the feasibility of a business opportunity.

Required knowledge

commonwealth, state/territory and local government legislative requirements relating to business operation, especially in regard to occupational health and safety (OHS) and environmental issues, equal employment opportunity, industrial relations and anti-discrimination

income and expenditure costing

regulations and codes of practice relevant to the business operation

principles of risk assessment relevant to the business opportunity.

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:

accurate and complete outline of the business idea that considers the major elements of:

products/services

customers

operations and processes

income and expenditure

resources

marketing

location

evaluation of research results and assessment of the likely viability and practicability of a business opportunity, taking into account the current business/market climate and resources available

effective presentation of business idea and profile

knowledge of relevant legislative requirements affecting business operation.

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:

oral or audio-visual presentation of business proposal, depending on the proposed stakeholder/s

portfolio of evidence including an outline of the business idea, evaluation of viability based on research and presentation of the business idea in an appropriate format for the proposed stakeholder/s

oral or written questioning to assess knowledge of regulations and codes of practice relevant to the business operation

review of list of key stakeholders and their information requirements.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

BSBSMB301A Investigate micro business opportunities.

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.

Key factors may include:

economy

infrastructure requirements

legal requirements and licensing

market competition

opportunities available

resources and premises/location available

risks related to a particular business opportunity, especially in regard to OHS and environmental considerations set up costs, time and effort

skills available

timing/cyclical considerations

Personal skills/attributes may include:

business knowledge and skills

communication skills

entrepreneurship

financial knowledge and skills

technical and/or specialist skills

willingness to explore opportunities

Business risks may be affected by and may include:

cultural, community and/or family factors

market competition

market trends

OHS and environmental considerations

relevant legislative requirements

resources available

security of investment

security of premises/location

supply and demand

Accurate description of the business idea includes:

business type and location such as:

specific aspects of type of business, for example newsagency, clothes retailing, toy manufacturing, tourism venture, heritage consultant

type or field of business, for example consulting, manufacturing, retailing

where the business will operate from

overall purpose of the business general scope such as:

address community or social justice objectives

maximise profits and personal wealth

provide employment opportunities for self, family or community members

provide not-for-profit goods and services for the community

retain linkages to land or locality

Accurate summary of the major products and/or services includes:

customer and market description such as:

customer characteristics

marketing issues to meet needs

specialised needs of customers

overall predicted costs including:

capital

distribution costs

insurance

maintenance

overheads

production costs

supply costs

overall predicted income such as:

grants

interest on investments

loans

supply or sales of products or services

tax incentives

processes or operations such as:

how business might be structured

what ethical or cultural principles and protocols will guide the running of the business

what major activities the business will undertake

resources such as:

capital

cultural knowledge

equipment

premises

skills and abilities

Key stakeholders may include:

business and community members and organisations

councils (local, land and other)

customers

Elders, traditional owners, native Title holders

family members

funding bodies/banks/lending institutions

Indigenous, culturally and linguistically diverse organisations

suppliers

Preparing the business overview may mean determining:

appropriate medium for presentation, such as oral or visual presentation, video, written documentation, developing a web page

best style of presenting the information, such as using plain English, using first language, joint presentation with key stakeholders

most suitable information to include in different versions of the overview

order of information to best suit the needs and interests of the audience

time and location that best suits the target audience needs and their importance

Method of presentation includes:

main characteristics of the method

reasons for the method and any cultural considerations

Presentation may be via:

formal written business proposal

oral or visual presentation

video

Unit sector

Management and Leadership - Small and Micro Business

This unit contains employability skills.