Undertake small business planning

This unit describes the performance outcomes, skills and knowledge required to research and develop an integrated business plan for achieving business goals and objectives.Specific legal requirements apply to the management of a small business.


This work is undertaken by individuals who operate a small business.

This unit is suitable for micro and small businesses or a department in a larger organisation.

Elements and Performance Criteria



1. Identify elements of the business plan

1.1. Identify purpose of the business plan

1.2. Identify and review the essential components of the business plan

1.3. Identify and document business goals and objectives as a basis for measuring business performance

2. Develop a business plan

2.1. Research resources, legal and compliance requirements, specifically in relation to occupational health and safety (OHS), in accordance with business goals and objectives

2.2. Research market needs, and market size and potential

2.3. Identify sources and costs of finance, from the financial plan, to provide required liquidity and profitability for the business

2.4. Identify methods, from the marketing strategies, to promote the market exposure of the business

2.5. Identify methods/means of production/operation from the production/operations plan to conform with business goals and objectives

2.6. Identify staffing requirements to effectively produce/deliver products/services

2.7. Identify specialist services and sources of advice, where required, and cost in accordance with resources available

3. Develop strategies for minimising risks

3.1. Identify specific interests and objectives of relevant people and seek and confirm their support of the planned business direction

3.2. Identify and develop risk management strategies according to business goals and objectives, and relevant legal requirements

3.3. Develop contingency plan to address possible areas of non-conformance with the plan

Required Skills

Required skills

communication skills to assess business performance

literacy skills to enable interpretation of business information

numeracy skills to analyse data.

Required knowledge

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

methods of evaluation

OHS responsibilities and procedures for identifying hazards relevant to the business

planning processes

preparation of a business plan

principles of risk management relevant to business planning

reasons for and benefits of, business planning

relevant industry codes of practice

setting goals and objectives

types of business planning - feasibility studies; strategic, operational, financial and marketing planning.

Evidence Required

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.

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


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


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


sub-contractors or external advisers/consultants

Specialist services may include:


business advisors and consultants

business brokers


government agencies

industry/trade associations

lawyers and providers of legal advice


online gateways

Relevant people may include:


family members

franchise agency

owner/operator, partners, financial backers

regulatory bodies


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


Unit sector

Competency Field

Management and Leadership - Small and Micro Business

Employability Skills

This unit contains employability skills.

Licensing Information

Not applicable.