Application
This unit describes the skills and knowledge required to formulate and implement actions to develop and sustain a small business.
It applies to individuals who run a small business that operates independently, or as part of a larger organisation. Individuals in this role interpret business information and numerical data competently to plan, direct and control a small business, make strategic decisions and take action.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
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. Investigate opportunities and ideas for business development | 1.1 Conduct an internal assessment of the performance of the business and its operations to identify potential efficiencies 1.2 Review the external business environment and identify emerging trends, disruptions and potential threats 1.3 Consult with relevant stakeholders and specialist services or sources of advice to gain feedback on development possibilities 1.4 Consider development options specific to the type of business, market or industry life cycle stage utilising benchmarking, research and innovation |
2. Formulate strategies | 2.1 Based on the outcomes of the analysis, confirm or modify the business objectives 2.2 Develop a set of strategies and specific actions for both the short and long term incorporating regulatory, social, economic, ethical and environmental responsibility factors into the decision- making process 2.3 Align the strategies to the business resource and capability limitations |
3. Implement the strategies | 3.1 Access and allocate resources 3.2 Establish a framework for implementation that covers equipment, infrastructure and personnel 3.3 Design controls to monitor progress and take action to correct any issues 3.4 Demonstrate leadership by providing direction and motivation to others to encourage contribution to business success |
4. Monitor the implementation of the strategies | 4.1 Assess the outcomes of the strategies and actions against business objectives and performance targets 4.2 Consider further innovations or efficiencies that would contribute to business sustainability 4.3 Determine any adjustments to the strategies and actions to accommodate changes in the internal or external situation 4.4 Document and communicate the changes to relevant stakeholders |
Evidence of Performance
Evidence of the ability to:
identify regulatory, social, economic, ethical and environmental responsibility factors impacting on small business development opportunities
assess the internal and external business environment and determine realistic opportunities, strategies and actions to develop or sustain the business for both the short and long term
develop an implementation plan to meet business objectives that includes:
specific actions and strategies
resource allocation
timeframes
roles and responsibilities
communicate with relevant stakeholders to gain information and advice to inform the development actions and strategies
identify efficiencies and innovations that support business sustainability
implement controls to monitor progress
assess progress and adapt strategy to accommodate changes.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must:
outline market and industry life cycle stages
outline key steps in business environment analysis
describe three ethical issues that can arise in small business
identify the key factors in sustainable business management
explain the principles of leadership for small business
discuss the different actions and strategies for small business development appropriate for particular business type, size and industry.
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:
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.
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, 1.2, 1.4 | Identifies, analyses and evaluates a range of textual information to determine options, opportunities and challenges, as well as legislative and regulatory requirements of using digital technologies |
Writing | 2.1-2.3, 3.2, 3.3, 4.4 | Prepares documents according to organisational requirements Creates texts using formats and language appropriate to the audience and context |
Oral Communication | 1.3, 3.4, 4.4 | Presents information and seeks advice using language appropriate to audience Participates in discussions using listening and questioning to elicit the views of others and to clarify or confirm understanding |
Numeracy | 1.1, 1.4, 3.1, 3.3 4.1 | Interprets and uses mathematical equations to analyse and compare businesses, and identify and quantify opportunities Designs controls to monitor and measure outcomes |
Navigate the world of work | 2.2 | Develops, monitors and modifies organisational policies and procedures in accordance with legislative requirements and organisation goals |
Interact with others | 1.3, 3.4, 4.4 | Selects and uses appropriate conventions and protocols when communicating with specialist advisors to seek or share information Plays a lead role in motivating and providing direction to others to elicit positive outcomes |
Get the work done | 1.1-1.4, 2.1-2.3, 3.1-3.4, 4.1-4.4 | Plans, organises and implements work activities of self and others that ensure compliance with organisational policies and procedures, and legislative requirements Sequences and schedules complex activities, monitors implementation, and manages relevant communication Uses a systematic, analytical approach to gather relevant information, identify and evaluate options and opportunities, and allocate resources Creates and innovates to develop ideas and opportunities for implementation Evaluates outcomes of strategies to identify opportunities for improvement, and make adjustments as appropriate |
Sectors
Management and Leadership – Small and Micro Business