Application
This unit describes the skills and knowledge required to research the viability of ideas for business opportunities and develop and present proposals for viable options in formats suiting a range of stakeholders.
The unit applies to those establishing or operating a business providing self-employment, as well as those establishing a new venture as part of a larger organisation. The proposals may relate to products and/or services offered by the business.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
1. Evaluate business ideas | 1.1 Identify ideas relating to business opportunities 1.2 Research key factors influencing their financial viability 1.3 Analyse business ideas to determine viability of business opportunity 1.4 Record outcomes of evaluation according to workplace procedures |
2. Manage risk associated with business proposal | 2.1 Identify potential risks associated with opportunity ideas and viability of business 2.2 Communicate with relevant stakeholders the potential risks 2.3 Assist relevant stakeholders to develop risk management systems |
3. Develop proposal for viable business idea | 3.1 Identify audience for proposal, and required structure and content 3.2 Establish budget according to financial viability 3.3 Develop description of business idea according to identified budget and business opportunities 3.4 Confirm that draft proposal meets requirements |
4. Present business proposal | 4.1 Determine presentation method suited to audience 4.2 Provide customised business proposal to target audience 4.3 Seek feedback to inform future proposals |
Evidence of Performance
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:
develop and present a business proposal for a product or service.
In the course of the above, the candidate must:
analyse information from a range of sources to evaluate the viability of the business opportunities, including:
consideration of personal commitments
risk identification and assessment
personal skills and attributes analysis against required skills
anticipated financial returns.
Evidence of Knowledge
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:
factors influencing financial viability of business ventures, including financial returns
factors influencing viability of business ideas, including:
impact of emerging or changing technology
personal circumstances and suitability of own skills profile
assessed risks
availability of required resources
key requirements for business proposals, including:
information relating to legislative requirements, regulations, standards and codes or practice
structure and content suited to audience needs
formats and methods of presentations
description of products and/or services
workplace procedures for:
recording outcomes of proposal evaluation
establishing income and expenditure costing for business proposal
principles of risk assessment relevant to business opportunity described in performance evidence.
Assessment Conditions
Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.
This includes access to:
business technology, including internet access and presentation software
legislation, regulations, standards and codes of practice relating to business proposal described in performance evidence
workplace documentation and resources relevant to performance evidence
interaction with others for presentation purposes.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Foundation Skills
Reading | Interprets information from a range of sources |
Writing | Uses information and industry-related terminology to complete required documentation |
Numeracy | Extracts, evaluates and compares numerical information |
Initiative and enterprise skills | Plans and implements tasks required to prepare and present a business proposal Analyses and evaluates options before making decisions, considering needs, resources and constraints |
Technology | Uses a range of digital tools to access, organise, integrate and present relevant information |
Sectors
Business Competence – Entrepreneurship and Small Business