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Evidence Guide: BSBESB403 - Plan finances for new business ventures

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

BSBESB403 - Plan finances for new business ventures

What evidence can you provide to prove your understanding of each of the following citeria?

Prepare to plan finances

  1. Identify costs associated with production and delivery of business products and/or services
  2. Set profit targets according to business venture requirements and workplace procedures
  3. Calculate prices based on costs and profit targets, as a charge-out rate for labour or unit price for products and/or services
  4. Calculate breakeven sales point to assess viability of business venture
  5. Evaluate and select pricing strategies in relation to market conditions to meet profit targets and according to workplace procedures
  6. Prepare projected profit statement to supplement business plan
Identify costs associated with production and delivery of business products and/or services

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Set profit targets according to business venture requirements and workplace procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate prices based on costs and profit targets, as a charge-out rate for labour or unit price for products and/or services

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate breakeven sales point to assess viability of business venture

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Evaluate and select pricing strategies in relation to market conditions to meet profit targets and according to workplace procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Prepare projected profit statement to supplement business plan

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop a financial plan

  1. Identify working capital requirements necessary to attain profit projections
  2. Identify noncurrent asset requirements and consider alternative asset management strategies
  3. Prepare cash flow projections to enable business operation according to business plan and legal requirements
  4. Identify capital investment requirements accurately for each operational period
  5. Select budget targets to enable ongoing monitoring of financial performance
Identify working capital requirements necessary to attain profit projections

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify noncurrent asset requirements and consider alternative asset management strategies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Prepare cash flow projections to enable business operation according to business plan and legal requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify capital investment requirements accurately for each operational period

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Select budget targets to enable ongoing monitoring of financial performance

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Plan to acquire finance

  1. Identify startup and ongoing financial requirements according to financial plan and budget
  2. Identify sources of finance for required liquidity according to business goals and objectives and workplace procedures
  3. Research and assess cost of securing finance on optimal terms
  4. Develop strategies to obtain finance as required to ensure financial viability of business venture
Identify startup and ongoing financial requirements according to financial plan and budget

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify sources of finance for required liquidity according to business goals and objectives and workplace procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Research and assess cost of securing finance on optimal terms

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop strategies to obtain finance as required to ensure financial viability of business venture

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Required Skills and Knowledge

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 at least one financial plan that addresses financial requirements of a business or new business venture, including cash flow projections and a projected profit statement.

In the course of the above, the candidate must demonstrate that the plan:

reflects legal requirements applicable to business

includes strategies to monitor financial performance of business.

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:

legislative and regulatory requirements relating to business described in performance evidence

process for conducting breakeven analyses

workplace procedures for:

costing for the business, including margin or markup, charge-out rates and unit costs

setting profit targets

identifying sources and investigating costs of securing appropriate financial assistance

methods and relative costs of obtaining finance

principles and procedures for preparing:

balance sheets

cash flow forecasts

profit and loss statements

financial plans

purpose of financial reports

accounting terminology required when planning finances for new business ventures

methods for analysing working capital cycles.