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Evidence Guide: BSBSMB303A - Organise finances for the micro business

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

 

BSBSMB303A - Organise finances for the micro business

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

Ascertain own financial position and the ability to provide capital/equity for the business

  1. Realistically detail personal, family or community financial situation in terms of funds available and commitments already incurred
  2. Determine equity finance and assets available for micro business from personal, family or community sources
Realistically detail personal, family or community financial situation in terms of funds available and commitments already incurred

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine equity finance and assets available for micro business from personal, family or community sources

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine projected cash flow for the business

  1. Determine the level of forecast business activity over a year and the business mix
  2. Estimate establishment costs for the business and repayment schedule for borrowings
  3. Calculate the monthly variable and fixed costs needed to conduct business activity over a year
  4. Estimate personal drawings needed to be taken from the business
  5. Estimate the monthly income generated by the business for a year based on price per unit item or hourly charge rate for labour
  6. Develop a cash flow budget for the first year of business operation
  7. Seek professional advice to estimate goods and services tax and operating finance required for the business
Determine the level of forecast business activity over a year and the business mix

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Estimate establishment costs for the business and repayment schedule for borrowings

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate the monthly variable and fixed costs needed to conduct business activity over a year

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Estimate personal drawings needed to be taken from the business

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Estimate the monthly income generated by the business for a year based on price per unit item or hourly charge rate for labour

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop a cash flow budget for the first year of business operation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Seek professional advice to estimate goods and services tax and operating finance required for the business

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Source the required funds to establish the business

  1. Estimate required funding to establish and run the business based on expected sales and activity levels, available finances and commitments
  2. Investigate methods of accessing alternative sources of finance
  3. Identify strategies for meeting financial obligations
  4. Implement plans to access available funds as required
Estimate required funding to establish and run the business based on expected sales and activity levels, available finances and commitments

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Investigate methods of accessing alternative sources of finance

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify strategies for meeting financial obligations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implement plans to access available funds as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor profitability of the business

  1. Maintain and review monthly expenditure and income records
  2. Compare equity at beginning and end of a year to estimate business performance
  3. Assess the financial viability of the business after a year of operation
  4. Seek professional advice on depreciation, insurance and tax implications of the business
Maintain and review monthly expenditure and income records

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Compare equity at beginning and end of a year to estimate business performance

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess the financial viability of the business after a year of operation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Seek professional advice on depreciation, insurance and tax implications of the business

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

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:

investigation of own financial position and needs

investigation of projected cash flow for the business

estimation of the funding needed to establish and operate the business

assessment of the financial viability of the business

knowledge of basic budgeting.

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:

problem-solving scenario which requires candidate to assess the financial viability of a proposed micro business in candidate's geographical location; the scenario should include opportunities for the candidate to calculate expenses and commitments against expected income

oral or written questioning to assess knowledge of financial reports and terminology

review of estimated establishmentcosts for the business and repayment schedule for borrowings

review of plans implemented to access available funds.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

BSBSMB302A Develop a micro business proposal

BSBSMB304A Determine resource requirements for the micro business.

Required Skills and Knowledge

Required skills

analytical skills to determine the viability of the business

literacy skills to interpret financial reports and to complete relevant forms requested by financial bodies

numeracy skills to calculate basic revenue and expense forecasts, and to estimate the funding needed to establish and run the business

research skills to source financial information.

Required knowledge

basic budgeting

basic costing for the business

financial commitments and requirements

financial reports and terminology

methods and relative costs of obtaining finance

own financial position

sources of advice and assistance.

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.

Personal, family or community financial situation may include:

education and other expenses

equity available through capital, savings and assets

existing loan repayments and/or other debt repayments

family, community or cultural commitments and obligations

living expenses such as rent, food, clothing for self and family

Establishment costs may include:

capital equipment

insurance costs

purchase price

start-up costs

Professional advice may include:

accountants

business brokers/business consultants

government agencies

industry/trade associations

online gateways

mentors

Sources of finance may include:

banks and/or other finance providers

business finance

family or community equity

family or community loans/resources

government grants and other sources

personal equity

private capital

royalties

venture capital

Financial viability may include:

return on capital

return on labour