ICTSMB401
Set up and operate a contractor business


Application

This unit describes the skills and knowledge required to own, operate and manage a small scale contractor business with employees that install telecommunications services.

It applies to individuals who operate their own contracting business delivering and installing telecommunications services to major service providers.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the ICT Implementation Guide Companion Volume or the relevant regulator for details of licensing, legislative or certification requirements.


Elements and Performance Criteria

Elements

Performance Criteria

Elements describe the essential outcomes

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Set up business operation

1.1 Develop business plan for small business operation according to business planning guidelines

1.2 Follow statutory and legal requirements to register business

1.3 Mitigate liabilities by obtaining adequate business insurance

1.4 Provide and maintain vehicle through purchase, lease or hire purchase, including managing fringe benefits tax (FBT) liabilities according to business plan

2. Provide client service

2.1 Develop and maintain client base to support business plan

2.2 Analyse and determine client expectations in relation to industry standards

2.3 Provide client service that meets client expectations according to enterprise standards

2.4 Monitor and evaluate performance on installations completed against industry standards

3. Perform small business financial management tasks

3.1 Record income and expenditure using bookkeeping tools and software according to normal accounting standards

3.2 Construct small business financial balance sheet using banking records or supply information to accountant according to normal accounting standards

3.3 Calculate small business taxation and superannuation requirements or supply information to accountant according to normal accounting standards

3.4 Complete a business activity statement (BAS) or supply data to accountant according to normal accounting standards

4. Cost and quote installation

4.1 Establish extent of work to be completed through professional and personable discussions with client

4.2 Complete job specification for quote with cost estimates of time required to complete work

4.3 Estimate and include cost of materials using supplier quoted prices

4.4 Determine and include margin for profit and ongoing costs for installation according to business plan

4.5 Check finalised quote for accuracy

4.6 Submit quote to client within agreed timeframe

Evidence of Performance

Evidence of the ability to:

produce a business plan and set up a business

define and meet client needs

perform simple financial management tasks including maintaining simple financial records, and completing business activity statement (BAS), fringe benefits tax (FBT) and insurance documentation

quote for installation jobs that cover all aspects of costing.

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:

specify business registration and licensing requirements

identify and describe Commonwealth, state, territory and local government legislative requirements relating to business operations including:

anti-discrimination

environmental issues

equal employment opportunity

industrial relations

work health and safety (WHS)

taxation requirements

analyse costs associated with running a business

identify the current tax rates

identify relevant industry codes of practice and evaluate their impact on the business

identify relevant industry standards in relation to:

materials and labour costs

rates of pay

identify common business liabilities

evaluate several sources of advice and specialist services

identify sources of information about regulatory, taxation and insurance requirements and issues.


Assessment Conditions

Gather evidence to demonstrate consistent performance in conditions that are safe and replicate the workplace. Noise levels, production flow, interruptions and time variances must be typical of those experienced in the telecommunications ‒ small and micro business field of work and include access to:

Australian Taxation Office guides

industry standards labour rates

general office bookkeeping procedures

client service guides

material suppliers

financial management record keeping software.

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

1.1-1.4, 2.2, 2.4, 3.4, 4.3, 4.5

Evaluates and integrates facts and ideas to construct meaning from a prescribed and limited range of text types, including relevant regulatory, taxation and insurance information

Writing

1.1, 2.1, 2.3, 2.4, 3.4, 4.2, 4.6

Conveys intended meaning on familiar topics for a limited range of purposes and audiences

Oral Communication

2.3, 2.4, 4.1

Selects and uses appropriate strategies to establish and maintain spoken communication in familiar and some unfamiliar contexts, particularly in relation to clients, employees and government officers

Numeracy

1.1, 1.3, 1.4, 2.2, 2.4, 3.1-3.4, 4.1-4.6

Selects from and uses a variety of mathematical and problem solving strategies in a range of familiar and some less familiar contexts, including preparation of quotes and calculation of profit margins

Extracts and evaluates the mathematical information embedded in a range of tasks and texts, including interpretation of financial information

Navigate the world of work

1.2, 2.3

Takes personal responsibility for adherence to legal and regulatory responsibilities relevant to business registration

Recognises and follows protocols in relation to enterprise standards and meets client expectations associated with role

Get the work done

1.1, 1.3, 1.4, 2.1-2.4, 3.1, 3.2, 4.1

Uses a combination of formal, logical planning processes and an increasingly intuitive understanding of context to develop a business plan

Implements actions as per plan, making slight adjustments if necessary, and addressing some unexpected issues

Makes a range of critical and non-critical decisions in relation to mitigating liabilities and providing client service, taking a range of constraints into account

Uses analytical processes to decide on a course of action, establishing criteria for deciding between options when developing client solutions

Uses a broad range of features within bookkeeping tools and applications to improve personal productivity, optimising software functions for specific purposes


Sectors

Telecommunications ‒ small and micro business