Elements and Performance Criteria

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.
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

EVIDENCE GUIDE
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.