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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Prepare to organise finances for new business venture
   • Establish current financial situation, showing funds available and commitments already incurred
   • Identify equity finance and assets from available sources
   • Identify business mix and forecast expected business activity over a year
2. Determine required finances for new business venture
   • Estimate start-up costs for business venture according to established business activities
   • Estimate income and expenses for first year of operation
   • Project cash flow for first year of operation
   • Seek specialist financial advice as required according to workplace procedures
   • Record cash flow and budget and required finances
3. Plan to access finances for new business venture
   • Investigate and source suitable types of finances
   • Establish methods of accessing finances and servicing any repayment schedule
   • Complete required documentation

Performance Evidence

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

organise finances for at least one new business venture.

In the course of the above, the candidate must:

investigate financial position, commitments and needs

determine projected cash flow and budget for business venture

estimate finances needed to establish and operate the business venture.

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Knowledge Evidence

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

sources of specialist financial advice relating to new business ventures, including Australian Taxation office (ATO)

accounting software for use in the business venture described in performance evidence

key financial terminology relevant to new business ventures

relationship between finances and sales and marketing strategies

workplace procedures for:

costing or pricing and preparing financial forecasts

estimating start-up costs, including cost of expenses and assets

seeking specialist financial advice

income and costs to be considered when estimating operating budget, including:

monthly variable and fixed costs required for business activity

drawings needed for business venture to be financially viable

monthly income generated by business venture based on price per unit item or hourly charge rate for labour

goods and services tax

operating finance required for business.

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