Occupational Standard: Basic Account Works Level II

Unit Title Develop Business Practice

Unit Code EIS BAW2 13 0812
Unit This unit specifies the outcomes required to establish a business operation from a
Descriptor planned concept. It includes researching the feasibility of establishing a business
operation, planning the setting up of the business, implementing the plan and
reviewing operations once commenced.

Elements Performance Criteria

1. Identify 1.1 Business opportunities are investigated and identified
business 1.2 Feasibility study is undertaken to determine likely business viability
opportunity 1.3 Market research on product or service is undertaken
1.4 Assistance with feasibility study of specialist & relevant parties is sought as required
1.5 Impact of emerging or changing technology including e-commerce, on business
operations are evaluated
1.6 Practicability of business opportunity is assessed in line with perceived risks, returns
sought and resources available
1.7 Business plan is completed for operation
2. Identify 2.1 Financial and business skills available are identified and taken into account when
personal business opportunities are researched
business skills 2.2 Personal skills/attributes are assessed and matched against those perceived as
necessary for a particular business opportunity
2.3 Business risks are identified and assessed according to resources available and
personal preferences
3. Plan for 3.1 Business structure and operations are determined and documented
establishment 3.2 Procedures are developed and documented to guide operations
of business 3.3 Financial backing is secured for business operation
operation 3.4 Business legal and regulatory requirements are identified and complied
3.5 Human and physical resources required to commence business operation are
determined
3.6 Recruitment strategies are developed and implemented
4. Implement 4.1 Marketing of business operation is undertaken
establishment 4.2 Physical and human resources are obtained to implement business operation
plan 4.3 Operational unit is established to support and coordinate business operation
4.4 Monitoring process is developed and implemented for managing operation
4.5 Legal documents are carefully maintained and relevant records are kept and updated
to ensure validity and accessibility
4.6 Contractual procurement rights for goods & services including contracts with relevant
people, negotiated and secured as required in accordance with the business plan
4.7 Options for leasing/ownership of business premises identified and contractual
arrangements are completed in accordance with the business plan
5. Review 5.1 Review process for implementation of business operation is developed and
implementation implemented
process 5.2 Improvements in business operation and associated management process are identified

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 5.3 Identified improvements are implemented and monitored for effectiveness
Variable Range Variable Range
Business May include but not limited to: Business May include but not limited to:
opportunities  expected financial viability risks  occupational health and safety
 skills of operator &environmental considerations
 amount and types of finance available  relevant legislative requirement
 returns expected or required by owners  security of investment
 likely return on investment  market competition
 finance required  security of premises/location
 lifestyle issues  supply and demand
 resources available
Business May include but not limited to: Human and May include but not limited to:
viability  opportunities available physical  software and hardware
 market competition resources  office premises
 timing/cyclical considerations
 communications equipment
 skills available
 specialist services through
 resources available
 location and/ or premises available outsourcing, contracting and
 risk related to a particular business consultancy
opportunity, especially in regard to  staff
Occupational Health and Safety and  vehicles
environmental considerations
Specialist and May include but not limited to: Operational May include but not limited to:
relevant  Chamber of commerce unit  office location staffed with
parties  Financial planners and financial required personnel and
institution representatives, business equipped to service and support
planning specialists and marketing
business
specialists
 accountants  home-based site or other
 lawyers and providers of legal advice location such as leased or
 government agencies owned property
 industry/trade associations
 online gateways
 business brokers/business consultants
Personal May include but not limited to: Legal May include but not limited to:
skills/attributes  technical and/ or specialist skills documents  partnership agreements,
 business knowledge and skills constitution documents,
statutory books for companies
 entrepreneurship (Register of Members, Register
 willingness to take risks of Directors and Minute Books),
Contracts with May include but not limited to: Certificate of Incorporation,
relevant  owners, suppliers, employees, Franchise Agreements and
people landlords, agents, distributors, financial documentation,
customers or any person with whom appropriate software for
financial records
the business has, or seeks to have, a
 recordkeeping including
performance-based relationship personnel, financial, taxation,
OHS and environmental

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 INTRODUCTION
Definition: Business Practice – is a method, procedure, process or rule employed or
followed by a company in the pursuit of its objectives. It is essential features of
processes needed to effect standard operating procedures in a consistent manner.

Purpose of Business Organization

 Profit
 Growth
 Innovation
 Recognition
 Satisfaction of consumer/market demand
 Production
 Combining resources to meet market demand

Business Practice Improvement Principles

 Serve the best interests of your business in pursuit of your organization vision
 Add value to people, units and processes
 Be accountable, transparency and act with integrity
 Be inclusive (include all group & participate all stakeholders)
 Welcome collaboration as essential to success
 Engage in open, considerate and ongoing communication
 Embrace creativity and use it to drive enhancements
 Provide a service to the context of institutional standards, quality & accountability
 Use common sense in developing solutions
 Focus on outcomes. Execute tasks. Measure results. Etc.

Business Practice Improvement areas

Business practice improvement has three areas of focus which guide our mission and
impact as a business.
I) Efficiency and Effectiveness – Identifying and implementing areas for
application of best practices and process improvements.
II) Growth & Innovation – Discover new methods to generate growth & innovation.

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 III) Developing Rigorous Disciplined and Analytical Business Professionals –
Committed to developing the highest quality employees across the enterprise.
LO1: IDENTIFY BUSINESS OPPORTUNITY
 Opportunities – is the gap in the market which presents the possibility of new value
being created. Business ideas are meaningless in the absence of opportunity.
 Business opportunities – it is an attractive investment idea or proposition that
provides the possibility of a monetary return for the investor or person taking the risk.
N.B. A good idea is not necessarily a good business opportunity.
 Characteristics of a good business opportunity
 Real demand
 Be competitive
 Return/reward on investment
 Meet objectives
 Availability of resources and skills.
1.1 Business opportunities are investigated and identified
 Business opportunities - May include but not limited to:
 expected financial viability
 skills of operator
 amount and types of finance available
 returns expected or required by owners
 likely return on investment
 finance required
 lifestyle issues

1.2 Feasibility study is undertaken to determine likely business viability

 Business viability - May include but not limited to:
 opportunities available
 market competition
 timing/cyclical considerations
 skills available
 resources available
 location and/ or premises available
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  risk related to a particular business opportunity, especially in regard to
Occupational Health and Safety and environmental considerations

1.3 Market research on product or service is undertaken

 Market research – is a systematic design, collection, analysis & reporting of
data & findings relevant to a specific marketing situation facing the company.
 Market research data – may include but not limited to:
 data about the 4 P’s (Product/service, Price, Promotion and Place)
 data about existing and new clients
 data from internal or external sources
 data from primary or secondary market research, etc
Hence, the owner of a small business must undertake market research
and utilize appropriate sources of information to their advantage.

1.4 Assistance with feasibility study of specialist and relevant parties is sought as
required
 Specialist and relevant parties - May include but not limited to:
 Chamber of commerce
 Financial planners and financial institution representatives, business
planning specialists and marketing specialists
 accountants
 lawyers and providers of legal advice
 government agencies
 industry/trade associations
 online gateways
 business brokers/business consultants

1.5 Impact of emerging or changing technology including e-commerce, on business

operations are evaluated

1.6 Practicability of business opportunity is assessed in line with perceived risks,

returns sought and resources available

1.7 Business plan is completed for operation

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 LO2: IDENTIFY PERSONAL BUSINESS SKILLS
 Skill: is the ability to apply knowledge and can be acquired or developed through
practice. In the context of business, some examples of entrepreneurial skills are:-
 Technical: Engineering, Computing, Sewing, Carpentry, Mechanics, Catering, etc
 Managerial: Self management skills, Negotiation skills, Marketing, Time
management, Problem solving, Active listening, Communication, Decision making
ability, Management, Organization, Planning, Leadership skills, etc.

2.1 Financial and business skills available are identified and taken into account when
business opportunities are researched

2.2 Personal skills/attributes are assessed and matched against those perceived
as necessary for a particular business opportunity
 Personal skills/attributes – May include but not limited to:
 technical and/ or specialist skills
 business knowledge and skills
 entrepreneurship
 willingness to take risks

2.3 Business risks are identified and assessed according to resources available
and personal preferences
 Business risks - May include but not limited to:
 occupational health and safety and environmental considerations
 relevant legislative requirement
 security of investment
 market competition
 security of premises/location
 supply and demand
 resources available

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 LO3: PLAN FOR ESTABLISHMENT OF BUSINESS OPERATION
 Plan – is a means of organizing works, determining resources, defining
responsibilities, coordinating activities, controlling progresses and handling
events and changes by establishing objectives and strategies to achieve.
3.1 Business structure and operations are determined and documented
 Business/Organizational structure - is the formal pattern of interactions and
coordination designed by management to link the tasks of individuals and groups
or it is the framework of jobs and departments in achieving organizational goals.
 Business/Organizational structures - may include but not limited to:
 Legal structure (Sole proprietorship, Partnership, Limited Company, etc.)
 Organizational structure/hierarchy
 Reward schemes.

3.2 Procedures are developed and documented to guide operations

3.3 Financial backing is secured for business operation

3.4 Business legal and regulatory requirements are identified and complied

3.5 Human and physical resources required to commence business operation are
determined
 Human and physical resources – May include but not limited to:
 software and hardware
 office premises
 communications equipment
 specialist services through outsourcing, contracting and consultancy
 staff
 vehicles

3.6 Recruitment strategies are developed and implemented

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 LO4: IMPLEMENT ESTABLISHMENT PLAN
Implementation Plan – It is a plan which explains details of policies and procedures
which are required to accomplish the strategies of the company.
 These plans produce immediate and tangible results in relatively shorter period.

4.1 Marketing of business operation is undertaken

4.2 Physical and human resources are obtained to implement business operation

4.3 Operational unit is established to support and coordinate business operation

 Operational unit – May include but not limited to:
 office location staffed with required personnel and equipped to service and
support business
 home-based site or other location such as leased or owned property

4.4 Monitoring process is developed and implemented for managing operation

4.5 Legal documents are carefully maintained and relevant records are kept and
updated to ensure validity and accessibility
 Legal documents – May include but not limited to:
 partnership agreements, constitution documents, statutory books for
companies (Register of Members, Register of Directors and Minute Books),
Certificate of Incorporation, Franchise Agreements and financial
documentation, appropriate software for financial records
 recordkeeping including personnel, financial, taxation, OHS & environmental

4.6 Contractual procurement rights for goods and services including contracts with
relevant people, negotiated and secured as required in accordance with the
business plan
 Contracts with relevant people – May include but not limited to:

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  owners, suppliers, employees, landlords, agents, distributors, customers or
any person with whom the business has, or seeks to have, a performance-
based relationship

4.7 Options for leasing/ownership of business premises identified and contractual

arrangements are completed in accordance with the business plan
LO5: REVIEW IMPLEMENTATION PROCESS
Monitoring (Review work performance) – is the regular and systematic collection,
analysis and interpreting of information from projects and programs to track the
implementation and measure the performance of a project/program against its
expected results. Planning and monitoring are very closely linked to each other.
Therefore, reviewing the implementation process is very important to business.

 Steps in the Monitoring (Reviewing work performance) Process

1. Establish a goal or a standard
2. Compare what is being done with the planned result
3. Implement corrective action, if necessary

5.1 Review process for implementation of business operation is developed and

Implemented

5.2 Improvements in business operation and associated management process are

Identified

5.3 Identified improvements are implemented and monitored for effectiveness