welcome to bsb40407, certificate iv in small business ... · bsb40407 cert iv small business...

Welcome to

BSB40407, Certificate IV in

Small Business

Management, A to B

Program

Would you build a house without a plan?

BSB40407 Cert IV Small Business Management A to B Program

85% of small business fail in the first year of business, and a further 4 %

survive past 10 years due to lack of planning. And 58% of these failed

businesses didn’t have a business plan.

So why go into business without a plan?

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Today’s Agenda

Introductions

Housekeeping

Course and content

overview

Assessment criteria &

assignments- units of

competency

Types of businesses

Business planning; core

areas, reasons, templates


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WHO ARE YOU?

WHY ARE YOU HERE?

&

WHERE DID YOU COME FROM?


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HOUSEKEEPING

All phones off

Toilets

Emergency evacuation

Do not speak when others are

Questions- raise hands

Get involved & have a say

Take notes

Be positive


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Course overview

Delivery:

• Visual: power point presentations, charts, internet, handouts with plenty of white space, visual displays

• Auditory: teach students by them listening rather than by reading. Questions and answers, lectures and stories, discussion groups

• Kinesthetic: Learn by doing. Team activities, hands on experience, role plays and note taking


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Course overview

Assessment Methods

Assignments in relation to BSBSMB404A

Small Business Plan;

1. Prepare a business plan

2. Exam semester 1

3. Exam semester 2


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Business Plan - What is it?

A business plan is a

working tangible

document, that

holds the blue print

to your businesses

success.


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Components of the Small

Business Plan


• Executive Summary- this is written last, it is a summary of the tittles below;

• Products and /or Services offered

• Industry overview

• Position in the Industry

• Competitors

• Marketing Plan

• Pricing Strategy

• Sales and Distribution Plan

• Management Plan

• Operating Plan

• Financial Plan

• IT Plan

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Why are you in business?

Why goals and objectives?

To enable a company to control its marketing plan.

To help to motivate individuals and teams to reach a common goal.

To provide an agreed, consistent focus for all functions of an

organization.

All objectives should be SMART i.e. Specific, Measurable, Achievable,

Realistic, and Timed.

Specific - Be precise about what you are going to achieve.

Measurable - Quantify your objectives.

Achievable - Are you attempting too much?

Realistic - Do you have the resources to make the objective happen

(men, money, machines, materials, minutes)?

Timed - State when you will achieve the objective (within a month? By

February 2018?)


Step 1- Business Goals and Objectives:

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What type of business are you?


Sole Trader Partnership Private Company

Description A single person who controls and owns the

business.

Two people or more, sharing profits in

agreed proportion.

A legal entity in its own right. The owners are the

shareholders.

Advantages

Simple and quick to set up or to close down.

Benefits from

combining your skills and capital with that of

others.

Flexible managing tax (directors pay tax on

salaries and then receive dividends on surplus profit.

Disadvantages Personally liable for all debts. Few options to

minimise tax.

All partners are liable, regardless of their partnership equity.

Partnership ceases on death.

Higher ongoing compliance costs and

more complex reporting obligations.

Establishment Costs

From nil to $130

Between nil and $1,000, depending on costs of drawing up a

partnership agreement. $1,000 to $15,000

Ongoing Costs Normal accounting fees plus periodic renewal of

business name.

Normal accounting fees plus periodic renewal of

business name.

Higher accounting fees ($650 upwards a year)

plus $200 annual filing fee.

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Did you know?

Ross Cameron of Cameron Research Group found some common characteristics in the small businesses sector: – 50%of businesses don’t employ and

don’t want to

– A further 32% employ fewer than 5 people

– 58% of owners don’t have a business plan

– 83% of owners don’t have a business degree

– One third have owned a previous business

BSB40407 Cert IV Small Business

Management A to B Program 22/05/2014 13


•A micro business has less than 5 staff.

•A small business has less than 20 staff

•A medium business has more than 20 staff but less than 200

•And a large organization employs more than 200 staff

Size matters

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WH&S • Explain the need for WH&S in all environments.

Est. WH&S committee. Implement the following

criteria;

• Induction manuals for all employees covering their

award, the working environment

• Training manuals to be drawn up for every

procedure

• Hazard Reporting committee members responsible

for hazard reporting, must know to do: who, what

,where , and when

• Inspections: a committee member to inspect work

environment for safety breaches, i.e. faulty electrical

cables

• Accident Investigation: Work Cover explain their

role, covering penalties for breach


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WH&S • Rehabilitation: Work Cover in conjunction

with WH&S comm.’ will devise plans to assist return to work

• Review: WH&S committee must review all procedures on all ¼ basis for improvement

• Creating a Healthy Company: - the principles of a healthy company include: a safe

• Working environment: healthy working practices; programs to promote health and to address psychosocial risk factors at the workplace; health impact assessment for , marketed products; and contribution to health and social development in the community



Resources


• Australian Securities and Investments Corporation ( ASIC).

• ASIC is Australia’s corporate, markets and financial services regulator.

• http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/For%20companies%20overview

• ASIC contributes to Australia’s economic reputation and wellbeing by ensuring that Australia’s financial markets are fair and transparent, supported by confident and informed investors and consumers. All business names have to be registered with ASIC

• Compliance programs aimed at ensuring companies, schemes and various individuals and entities meet their obligations under the Corporations Act 2001 (Cth) (Corporations Act).

• Discuss the importance of the Trade Practices Act and ACCC

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http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/For companies overview

http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/For companies overview

Financial Plan

• start up cost

• costings

• profit and loss,

• cash flow

• balance sheet

• break-even analysis assumptions

• business ratios such as Quick ratio etc.


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Financial Plan

• Teach and supply class with examples of costing’s, budget planner, cash flows.

• Discuss Quick Ratio a quick ratio as a financial tool that weighs assets against debt to help determine how healthy an organization is. It is also known as the "acid test".

• Discuss solvency and insolvency Laws, explain their connection to the various business structures. Discuss the connection between the “Quick test” and solvency. Explain about and the two tests for insolvency, cash flow test and Balance sheet test

• Explain how to do a costing BSB40407 Cert IV Small Business



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Marketing Strategy Marketing Strategy:

SWOT Analysis

• Strengths: Areas where you are better than your competitor

• Weaknesses: Areas where you are weak against your competitor

• Opportunities: Areas where you have an opportunity over your competitors

• Threats: Areas where your competitors are better than you


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The Marketing Mix

Price, Product, Place, Promotion, People, Process,

Physical

Target Markets: How to identify and connect with,

expand……

Segmentation; Demographic, Psychographics,

Geographic explain how to segment your

market…..



The Marketing Plan

Value Statement/Proposition: A value statement is an expression of a company's or individual's core beliefs.

Competitive Edge: having a clear advantage over the competition in terms of one or more elements of the marketing mix that is valued by potential customers What is your service/business’ competitive edge?


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The Marketing Plan

Branding/Positioning Statements: A brand's position refers to its place in the customers' minds. Positioning creates a unique space for a brand, and succinctly articulates the position to the brand's core target audience. Writing a positioning statement is key to creating a brand's desired position.


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The Marketing Plan Pricing Strategy: Pricing strategy refers to the methods by which a business calculates how much it will charge for a product or service. It is based not only on the cost of the product, but also on profit margin and a holistic view of the market and future viability Promotion Strategy: The campaigns are constructed to define and locate the targeted audience, and to clearly and specifically communicate your desired message. Distribution Patterns: Distribution (or "Place") is the fourth traditional element of the marketing mix. The other three are Product, Price and Promotion.


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Sales Strategy


Marketing theory distinguishes between two main kinds

of promotional strategy - "push" and "pull".

Push

A “push” promotional strategy makes use of a company's sales force and

trade promotion activities to create consumer demand for a product.

The producer promotes the product to wholesalers, the wholesalers

promote it to retailers, and the retailers promote it to consumers.

Pull

A “pull” selling strategy is one that requires high spending on advertising

and consumer promotion to build up consumer demand for a product.

If the strategy is successful, consumers will ask their retailers for the

product, the retailers will ask the wholesalers, and the wholesalers will

ask the producers.

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E- Business

Web Plan - E-marketing:

E-marketing is the term given to marketing strategies and tactics used exclusively on the Internet. Website to sales channel. Data collation and collection. Social media channels and channel management. Blogging. Feasibility assessment via social media.


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E- Business

Marketing sites v selling sites.

The Boston Chocolate factory, member’s create new recipes and submit. Landing pages dedicated to product. Multiple sites linked to for search and deep linking. It seems complex, but it isn’t. Make site sticky, SEO bed at the top of the page, analytics: find out

how’s looking at your site and for how long.


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Production/Operation Plan

• Full knowledge of Fair

Work Australia, 10 commandments and pay awards

• Small Business owners should join an association that assist them e.g. Australian Business. Associations like this will keep you informed in regards to new legislation


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Production/Operation Plan

Do you manufacture or outsource

product/warehouse.

Examine industrial environment. Fixed cost versus variable. Production/inventory planning/ logistics


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Human Resources


Staffing requirements

Discuss various types of employment and the cost/advantage to the

company, Full time, part time, casual, permanent temporary.

Small Business needs to know how to identify roles and responsibilities,

recruit, induct, performance manage, dismiss. For all enquiries please go to

the Fair Work Australia site;

http://www.fwa.gov.au/index.cfm?pagename=legislation

http://www.fairwork.gov.au/employment/employers/pages/default.aspx

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http://www.fwa.gov.au/index.cfm?pagename=legislation

http://www.fairwork.gov.au/employment/employers/pages/default.aspx

Human Resources


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Power to the people

Corporate Governance

• Corporate governance is a term that refers broadly to the rules, processes, or laws by which businesses are operated, regulated, and controlled. The term can refer to internal factors defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as consumer groups, clients, and government regulations.

• Policies/Structure designed everyone internal - say officers, stockholders and external such as consumer groups, trends or legislation


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Power to the people

Corporations adhere to accepted ethical standards and Best practices ( explain) A best practice is a technique or methodology that, through experience and research, has proven to reliably lead to a desired result., i.e. best practice in software development results in a new advancement



Power to the people

Include backgrounds of key members of the management team, personnel ,strategy, and details.

Establish a Work In Progress Doc’ on

Excel WIP for all Business Strategy.


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Work in Progress Report Name:

Task Key Issues Status/Next Action Completion

Date

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Be in Touch


Specialist Services

• These can people how provide the extra services for the business to operate;

• Lawyer, Account, Mentors, Brokers, Specialist services, Advisory services

• Small business needs to enlist the services of specialists to ensure corporate governance.

Relevant People

• Are those people that are important to the owner/business, these may include;

• All stake holders such as; the learner, the manager, the trainer/training human resources, industrial relations.

Support for;

• English, literacy and numeracy support

• Disability

• Aboriginal and Torres Islander support, ethnic, counselling,

interpreting, community support, specialist learner support

• Workplace buddy

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Risk Management Discuss the reasons for

managing risk. Ensure that all

the principles of WH&S are

implemented and supervised

Benefits of risk management:

• Saves resources: people,

income, property, assets,

time

• Protects public image

• Protects people from harm

• Prevents/reduces legal

liability

• Protects the environment


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Contingency Plans


• In business it is best to have a second base or fall back position. Metrics are the best method of check and can be applied to;

• Customers, disruption to cash flow, late raw material deliveries

• In small business it is imperative that there are at least 2 to 3 avenues. As well as a bank, one could use factoring to speed up debtor recipes, 3 sources of supply

• “Do not put all your eggs in one basket”

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welcome to bsb40407, certificate iv in small business ... · bsb40407 cert iv small business...

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