BSBSMB306
Plan a home based business


Application

This unit describes the skills and knowledge required to assess the viability and create a plan to operate a business in the home environment.

It applies to individuals who are establishing or operating a micro business providing self-employment.

No licensing, legislative or certification requirements apply to this unit at the time of publication.


Elements and Performance Criteria

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

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

1. Determine viability of basing a business in a home environment

1.1 Identify activities that will be undertaken by the business and what facilities and workspace are needed

1.2 Identify what licences, permits, regulations or restrictions apply to operating a home based business

1.3 Identify availability of services and infrastructure to support the business

1.4 Calculate costs of suitable fittings and equipment for the business and any modifications required to existing facilities and infrastructure in the home

1.5 Determine access requirements of clients or delivery vehicles to the business premises

1.6 Identify insurance requirements for operation of the business in the home

2. Plan workplace in a home environment

2.1 Prepare a floor plan or layout that meets needs of the business and home occupants

2.2 Prepare any concept plans for modifications to buildings or structures in accordance with local government requirements

2.3 Obtain approvals from relevant authorities

2.4 Identify work health and safety (WHS) issues and develop procedures to eliminate or minimise any risks

2.5 Design workplace to provide appropriate client access and facilities while retaining privacy for home occupants

2.6 Allocate adequate and secure space for business machinery, equipment and storage of materials

3. Minimise potential sources of conflict

3.1 Identify possible sources of conflict with neighbours or home occupants

3.2 Develop protocols for home occupants, visitors and clients to enable the business to successfully operate in the home environment

3.3 Prepare a work schedule that identifies business and personal activities

3.4 Establish contingency plans for unanticipated events

Evidence of Performance

Evidence of the ability to:

identify practical requirements of running a home based business, including calculation of costs

plan suitable workspace, including:

preparing concept plan for possible modifications to structure of building

obtaining relevant approvals from external sources

identifying and meeting required legislative requirements

implement procedures and protocols to ensure home based business runs smoothly including:

creating work schedule

identifying and establishing contingency plans for areas of possible conflict.

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:

list prohibitive factors in setting up a home based business

list commonwealth, state/territory and local government legislative requirements relating to business operation, especially for work health and safety (WHS) and environmental issues

outline constraints of home based businesses

summarise relevant services and available infrastructure.


Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the Management and Leadership – Small and Micro Business field of work and include access to:

relevant legislation, regulations, standards and codes

relevant workplace documentation and resources

case studies or where possible, real situations.

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

1.2, 1.3, 1.6, 2.2, 2.4

Interprets all legislative and regulatory information pertinent to business requirements

Writing

1.6, 2.1, 2.3, 2.4, 3.2-3.4

Uses factual information to complete required forms and workplace documentation

Oral Communication

1.6, 2.3

Articulates clearly using specific and relevant language suitable to audience to convey requirements, and listening and questioning techniques to confirm understanding

Numeracy

1.4

Analyses numerical information to calculate equipment and infrastructure costs

Navigate the world of work

1.2, 2.2, 2.4, 3.2

Appreciates implications of legal and regulatory responsibilities related to own work and recognises specific legal principles and protocols applicable across work context

Interact with others

2.3

Selects appropriate form, channel and mode of communication for a specific purpose relevant to own role

Get the work done

1.1, 1.3-1.6, 2.1, 2.5, 2.6, 3.1, 3.3, 3.4

Takes responsibility for planning and organising own workload, identifying ways of sequencing work efficiently

Takes responsibility for outcomes of decisions related directly to own role

Recognises and takes responsibility for addressing and rectifying potential problems in the work place


Sectors

Management and Leadership – Small and Micro Business