BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
BSB40407 Certificate IV in Small Business
Management
Recognition of Prior Learning (RPL) Assessment Kit
Page 1 of 32
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
Table of Contents
About this RPL Kit
Page 3
The Certificate IV in Small Business Mgt qualification
Page 4
The RPL process
Page 5
Gathering evidence
Page 6
Submitting the evidence
Page 8
Summary of Evidence (Matrix)
Page 10
Evidence Planner
Page 12
Page 2 of 32
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
1. About this RPL Kit
This kit is designed to help you compile evidence through a recognition process to
achieve this qualification. This is a formal process that is based on a portfolio of
evidence submitted by you, the student.
You are going to work through the requirements of the qualification and gather:


Evidence of prior training and qualifications Recognition of Prior Learning (RPL)


Evidence of current competence Recognition of Current Competence (RCC)
This is an “assessment only”pathway
This is an “assessment only” pathway based on designed for candidates with relevant
qualifications and/or business experience. You may be eligible for some but not all of
the units that make up the qualification. So it is possible you are mixing the recognition
process with some formal learning (components of a course).
Quality portfolio preparation takes time
We appreciate that evidence gathering and portfolio preparation takes some time. It is
in your best interest to start planning, organising and get the process under way as
quickly as possible.
Planning, organisation and presentation are important
This kit provides planning tools that guide the evidence gathering. Use these tools and
tables to build up your planned evidence. Here are some tips to putting your portfolio
together:
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Look for evidence that meets the requirements for multiple units of
competency 
If you can demonstrate evidence that covers several units of competency, it will
minimize time spent searching for and compiling multiple forms of evidence for
each unit.

Authenticity 
You need supporting evidence to authenticate that the products and processes
you are submitting are indeed your work. Third party letters or references may
be requested to support your portfolio.

Recent evidence is preferred 
The assessor is looking for currency of competence so use recent projects as
evidence. As a rule of thumb, evidence from the last two years is preferable and
do not go back more than five years. This should be discussed with the
assessor. Your academic training and qualifications may go back further than
five years to demonstrate knowledge of vocational education and training.

Label the evidence 
Complete the cover page, evidence summary matrix, provide an index and label
the evidence. The assessor will not proceed unless the cover page and summary
are submitted and the evidence is organised and labelled.
Page 3 of 32
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
2. Course Structure
BSB40407 Certificate IV in Small Business Management
BSBSMB401A
Establish legal and risk management requirements of small business
BSBSMB402A
Plan small business finances
BSBSMB403A
Market the small business
BSBSMB404A
Undertake small business planning
BSBSMB408B
Manage personal, family, cultural and business obligations
BSBSMB409A
Build and maintain relationships with small business stakeholders
BSBSMB405B
Monitor and manage small business operations
BSBSMB407A
Manage a small team
BSBFIA402A
Report on financial activity
BSBSMB406A
Manage small business finances
Page 4 of 32
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
3. The RPL Process
STAGE 1
1. Enquiry-call Open Training Institute on +61 (03)86282500
2. Enrolment and payment of fees
STAGE 2
1. Access RPL Kit online via My Study Centre
STAGE 3
1. Read RPL Kit thoroughly
Support Available from your
Assessor on +61 (03)86282500
2. Commence compiling your Portfolio
STAGE 4
1. Upload Evidence Planner, Summary of Evidence and your
supporting documents.
2. Portfolio assessed
DEEMED COMPETENT
(COMPLETE AND SUFFICIENT)
1. Conversation with Assessor for validity.
2. Assessor signs off
DEEMED NOT YET COMPETENT
(INCOMPLETE OR INSUFFICIENT)
1. Assessor will provide feedback and request
additional evidence or information on supporting
documents provided.
2. You submit additional evidence/information.
QUALIFICATION OR STATEMENT OF
ATTAINMENT ISSUED
Page 5 of 32
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
4. Gathering Evidence
Contact with the Assessor
If required, you can contact the Assessor by calling student services on (03) 8628 2500
to assist the evidence gathering process.
The Assessor can help to:
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interpret the units of competency 
advise on matching evidence to the competencies 
clarify ways to organise the portfolio 
clarify the underpinning knowledge and skills required 
identify ways to fill gaps in experience and learning 
What will the Assessor be looking for in the assessment of the portfolio?
The Assessor will take an integrated and holistic approach to assessment and is looking
for:
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evidence of the specific evidence requirements for each unit of competency 
evidence of valid, current products that align to the units of competency, the
performance criteria and evidence guide which can be authenticated as the work
of the candidate 
evidence of valid, current processes that aligns to the units of competency, the
performance criteria and evidence guide which can be authenticated as the work
of the candidate 
evidence of the application of required skills and key competencies/employability
skills 
What if I don’t achieve all competencies by the end of the portfolio appraisal?
On submission of your portfolio, you will receive feedback from the Assessor. If there
are gaps in evidence or a question arising from the quality of the evidence, authenticity
or currency you will be contacted and given the opportunity to resubmit further
evidence. You will have an agreed time from when you enrolled in the RPL process to
complete all assessments with reasonable adjustments depending on your
circumstances.
The Assessor will sign off on the units of competency that have been achieved and the
Statements of Attainment indicating partial completion or the full qualification will be
issued.
What sort of evidence should you provide?
The Assessor is looking for specific evidence across the units of competency.
The evidence will be made up of:
1. Products –that have been developed, documented and used by you.
2. Processes –evidence that shows “how” you do what performed tasks, conducted
research or applied required knowledge and skills
3. Required knowledge and required skills –that demonstrate your
understanding of theory, legislation, and the principles of business.
Page 6 of 32
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
Rules of Evidence
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Currency – relates to the age of collected evidence. Competency requires
demonstration of current performance – therefore the evidence collected must
be current/very recent. Try to find evidence which shows that you can perform
the competency now. If all your evidence is 5 to 10 years in the past and you
have not been active in recent years then currency of skills and knowledge is
questioned. 

Validity –is when the process assesses what it claims to assess. Try to ensure
that the evidence relates clearly and directly to the elements and performance
criteria in each unit of competency. Check the overview of evidence and the
specific evidence requirements if you are not sure if the products and processes
are appropriate. 

Sufficiency –relates to the amount of evidence collected. The collection of
sufficient evidence is necessary to ensure all aspects of the competency have
been captured and to satisfy the need for repeatable performance.
Supplementary sources of evidence may be necessary. Try to present enough
evidence, not too much, not too little across the units of competency. The
specific evidence requirements in each unit will indicate the minimum amount of
evidence that must be submitted.

Authenticity –relates to ensuring the evidence is from the candidate and not
another person. The assessor needs to be satisfied the own work. Do not make
things up and do not say that work done by someone else is yours. Provide
evidence that the work is yours through third party letters of authentication or
statutory declarations. 
Range –Try to collect a number of pieces of evidence that cover a range of
contexts, locations and the times you have demonstrated the competencies. 
These explanations have been adapted from the TAA04 Training and Assessment
Training Package Glossary of Terms ©ANTA 2004
Examples of Evidence
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Curriculum Vitae and authenticated work history 
Qualifications (E.g- Vocational, Higher Education), Certificates of Attendance
(Training Seminars) or Training records 
Products, Processes and examples of work (E.g- Strategic/Business/Marketing
Plans, Procedures, Job Descriptions, Performance Appraisals, Coaching logs) 
Third party reports from verified and appropriate people, preferably from the workplace 
Work records that support your evidence (E.g- project files, emails, meeting
notes, diaries) 
Reports, Assignments 
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BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
Putting the portfolio of evidence together
Step 1: Start preparing the Summary of Evidence Matrix
The matrix is an overview of your portfolio. Keep building this table as you
continue evidence gathering. The Summary of Evidence Matrix must be submitted
with the portfolio.
Step 2: Start to fill in the Evidence Planner table–by unit of competency.
Fill in the Evidence Planner table listing your evidence and explaining how it aligns
to each units of competency that it addresses. Remember, some evidence will
address more than one unit of competency. The Evidence Planner explanation will
give the Assessor a better understanding of how the documents you submit meet
the requirements of the unit and your understanding of the required knowledge
and skills across the qualification.
Read the units in detail this time clarifying your potential evidence against: the
elements, required skills/knowledge and performance criteria. Check the range of
variables to clarify the language and terms and the application of performance
criteria in your own work context.
Step 3: Review and finalise your evidence
You should now have your evidence organised and be able to see areas where the
evidence might be weak. Organise the verification and third party letters. The
Assessor will prefer to see letters on company stationery. Emails are not
acceptable. The declaration forms in this kit can also be used.
Step 4: Compile the portfolio
Check the labels and organise the evidence. Do not send originals of qualifications;
get copies certified as a true copy.
 Finalise the certified Summary of Evidence table with the explanations of

your evidence in your own words.
Finalise the Evidence Planner Matrix –the ‘at a glance” summary pa the top of your
portfolio.
Open Training Institute will accept photocopies certified by anyone who is currently
employed as:
 an accountant (they must be a member of the Institute of Chartered
Accountants in Australia, the Australian Society of Certified Practising
Accountants, or the National Institute of Accountants, or the Association of
Taxation and Management Accountants or Registered Tax Agents).
 a bank manager, but not a manager of a bank travel centre
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BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
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a
a
a
a
a
a
a
a
a
barrister, solicitor or patent attorney
credit union branch manager
commissioner for declaration
Justice of the Peace
medical practitioner (doctor)
police officer in charge of a police station, or of the rank of sergeant and above
postal manager
pharmacist
principal of an Australian secondary college, high school or primary school
Step 5: Submit the portfolio
Presentation of your portfolio is important. RPL applications should be uploaded via
My Study Centre.
Copies of all parts of the applications must be retained by the applicant.
Page 9 of 32
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
6. Summary of Evidence (Matrix)
The following matrix is completed as an example. Please use the matrix provided in the following page
Evidence
Resume
BSBDIV301A
BSBSUS301A
BSBWHS302A
BSBCUS301B
BSBITU301A
BSBWRT301A
BSBFLM306C
BSBINM301A
X
X
BSBINM302A
BSBINN301A
BSBFLM309C
X
X
X
Certificates
Letter from
Supervisor
X
X
X
X
X
Page 10 of 32
X
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
Certificate IV in Small Business Management- Summary of
Evidence Matrix
Use this summary to build a picture of your evidence across the units of competency in the Certificate IV in Small
Business Management
Evidence
BSBSMB401A
BSBSMB402A
BSBSMB403A
BSBSMB404A
BSBSMB408B
BSBSMB409A
Page 11 of 32
BSBSMB405B
BSBSMB407A
BSBFIA402A
BSBSMB406A
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
Certificate IV in Small Business Management-Evidence Planner
Use these summary tables to gather evidence that addresses the details in units of competency.
BSBFIA402A Report on financial activity
Element
Compile financial information and
data
Prepare statutory requirement
reports
Provide financial business
recommendations
Performance Criteria
Collect, evaluate and code current financial data to ensure
consistency, quality and accuracy in accordance with
organisational requirements
Use conversion and consolidation procedures to compile analysis in
accordance with organisational requirements
Make, record and disclose asset and liability valuations in
accordance with organisational requirements
Ensure that discrepancies, unusual features or queries are
identified, resolved or referred to the appropriate authority
Correctly record income and expenditure to ensure compliance
with statutory requirements
Calculate liabilities for tax in accordance with current legislation
and revenue gathering practices
Correctly identify relevant receipts, revenue documentation and
payments
Ensure that statements and claims take full advantage of available
benefits and allowances in accordance with statutory requirements
Submit statutory requirement reports to appropriate authorities
within stated deadlines
Ensure that recommendations are logically derived and supported
by evidence in report
Provide recommendations to propose constructive
actions to enhance the effectiveness and efficacy of functions and
services
Ensure recommendations are concise and facilitate direction and
control of organisation's operations
Identify and prioritise significant issues in statements including
comparative financial performances for review and decision
Page 12 of 32
Evidence Provided
Internal Use Only
Satisfactory
Yes
No
Skills
Required
Critical
Aspects of
Assessment
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
making
Ensure structure and format of reports are clear and conform to
organisational and statutory requirements

organising financial data to highlight relevant features

presenting financial data in comprehensive format

completing Business Activity Statements

knowledge of relevant legislation


literacy skills to identify financial information and the
organisation's accounting procedures, and to create
financial reports
problem-solving skills to deal with a defined range of
predictable problems
decision making skills to make routine decisions
numeracy skills to calculate data and to reconcile figures
key provisions of relevant legislation from all levels of
government that may affect aspects of business operations,
such as:
anti-discrimination legislation
ethical principles
codes of practice
privacy laws
financial legislation
occupational health and safety (OHS)
principles of double entry bookkeeping and accrual
accounting
techniques for forecasting and analysis

Federal government taxes and charges

options, methods and practices for deductions, benefits
and depreciations
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Knowledge
Required
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Page 13 of 32
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
BSBSMB401A Establish legal and risk management requirements of small business
Element
Identify and implement business
legal requirements
Comply with legislation, codes and
regulatory requirements
Negotiate and arrange contracts
Performance Criteria
Evidence Provided
Identify and research possible options for the business legal structure
using appropriate sources
Determine legislation and regulatory requirements affecting the operations
of the business under its chosen structure
Develop and implement procedures to ensure full compliance with relevant
legislation and regulatory requirements
Establish systems to ensure the legal rights and responsibilities of the
business are identified and the business is adequately protected,
specifically in relation to occupational health and safety (OHS), business
registration and environmental requirements
Identify taxation principles and requirements relative to the business and
follow procedures to ensure compliance
Identify and carefully maintain legal documents and maintain
and update relevant records to ensure their ongoing security and
accessibility
Monitor the provision of products and services of the business
to protect legal rights and to comply with legal responsibilities
Conduct investigations to identify areas of non-compliance with legal and
regulatory requirements and take corrective action where necessary
Seek legal advice on contractual rights and obligations, if required, to
clarify business liabilities
Investigate and assess potential products/services to determine
procurement rights and to ensure protection of business interests where
applicable
Negotiate and secure contractual procurement rights for goods and
services including contracts with relevant people, as required, in
accordance with the business plan
Identify insurance requirements and acquire adequate cover
Identify options for leasing/ownership of business premises and complete
contractual arrangements in accordance with the business plan
Page 14 of 32
Internal Use Only
Satisfactory
Yes
No
Skills
Required
Critical
Aspects of
Assessment
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit

implementation of a systematic approach to identifying, managing
and meeting legal and business requirements within culturally
appropriate contexts
interpreting compliance data and formulating appropriate action

knowledge of relevant legislation

communication, reporting, record keeping and consultation skills to
operate the business
literacy skills to interpret legal requirements, to develop policies and
procedures and to analyse compliance information
research skills to investigate legal structures, and taxation and
insurance requirements
time management skills to prioritise tasks and to meet key dates.
business registration and licensing requirements
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commonwealth, state/territory and local government legislative
requirements relating to business operation, especially in regard to
OHS and environmental issues, equal employment opportunity,
industrial relations, anti-discrimination, taxation
creation and termination of relevant legal contracts

cultural differences and legal implications

duty of care imposed by Law of Torts

legal rights and obligations of alternative ownership structures

record keeping to meet minimum legal and taxation requirements

relevant consumer legislation

relevant industry codes of practice

relevant insurance requirements and products
Knowledge
Required

Page 15 of 32
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
BSBSMB402A Plan small business finances
Element
Identify costs, calculate prices and
prepare profit statement
Develop a financial plan
Acquire finance
Performance Criteria
Evidence Provided
Identify and document costs associated with the production and delivery of
the business' products/services
Calculate prices based on costs and profit margin, as an hourly charge out
rate for labour or unit price for products
Calculate break-even sales point to establish business viability and profit
margins
Identify appropriate pricing strategies in relation to market conditions to
meet business profit targets
Prepare projected profit statement to supplement the business plan
Set profit targets/goals to reflect owner's desired returns
Identify working capital requirements necessary to attain profit
projections
Identify non-current asset requirements and consider alternative asset
management strategies
Prepare cash flow projections to enable business operation in accordance
with business plan and legal requirements
Identify capital investment requirements accurately for each operational
period
Select budget targets to enable ongoing monitoring of financial
performance
Identify start-up and ongoing financial requirements according to financial
plan/budget
Identify sources of finance, including potential financial backers, to provide
required liquidity for the business to complement business goals and
objectives
Investigate cost of securing finance on optimal terms
Identify strategies to obtain finance as required to ensure financial viability
of the business
Page 16 of 32
Internal Use Only
Satisfactory
Yes
No
Critical Aspects
of Assessment
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit

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
Skills
Required

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

Knowledge
analytical skills to interpret financial data
communication skills to secure finance
literacy skills to develop a financial plan and to interpret legal
requirements and financial reports
numeracy skills to calculate costs, prices, profit and other financial
information
research skills to identify costs and sources of finance
break-even analysis

costing for the business, including margin/mark-up, hourly charge
out rates and unit costs
financial decision making relevant to the business

methods and relative costs of obtaining finance

principles for preparation of balance sheets

principles for preparation of cash flow forecasts

principles for preparation of profit and loss statements

purpose of financial reports

relevant accounting terminology

working capital cycles

Required
development of a financial plan which identifies the financial
requirements of the business, including profit targets, cash flow
projections and strategies for the acquisition of finance
knowledge of financial decision making relevant to the business
Page 17 of 32
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
BSBSMB403A Market the small business
Element
Develop marketing strategies
Performance Criteria
Evidence Provided
Analyse the business and its key products or services to determine the
focus of marketing activities, in accordance with the objectives of the
business plan
Evaluate the customer base and target market for the small business as a
basis for the marketing objectives and strategies
Determine marketing objectives and strategies that are ethically and
culturally appropriate, in consultation with relevant people and in
accordance with the business plan
Balance product mix, volumes and pricing to optimise sales and
profit
Determine a marketing mix for the
Evaluate the costs and benefits of using different distribution channels
business
and/or providing different levels of customer service and consider the
results in determining the marketing mix
Determine promotional activities to suit the target market
Consider customer needs and preferences in determining the
marketing mix
Determine the marketing mix according to market and business needs
Implement marketing strategies
Brief persons involved in the marketing effort on their roles and
responsibilities, to ensure the success of marketing strategies
Plan and implement promotional activities, in accordance with marketing
objectives and budgetary requirements
Page 18 of 32
Internal Use Only
Satisfactory
Yes
No
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
Monitor and improve marketing
performance
Monitor marketing activities and evaluate business performance according
to the objectives and targets of the business plan
Analyse performance gaps and take corrective action or set new targets
Encourage all relevant people to propose ways to improve marketing
performance
Seek and analyse customer reaction to all aspects of the marketing mix,
using culturally appropriate processes, to improve targeting and outcomes
Knowledge
Required
Requir
ed
Skills
Critical
Aspects of
Assessment
Conduct ongoing research of customer requirements to identify
opportunities for change and improvement
Monitor and investigate changes in the market for new opportunities to aid
business development

developing a marketing strategy and choosing a marketing mix for
the small business that are culturally appropriate and that
complement the business plan

implementing and monitoring the marketing strategy/plan to
optimise the chances of small business success

knowledge of relevant marketing concepts and methods

communication skills to question, clarify and report
literacy and numeracy skills to research information, to analyse
data and to interpret market data
industry market trends

methods of analysing costs and benefits of marketing strategies

methods of developing marketing objectives and marketing mix

methods of monitoring customer satisfaction

relevant market analysis and research

relevant marketing concepts and methods
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Page 19 of 32
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
BSBSMB404A Undertake small business planning
Element
Performance Criteria
Evidence Provided
Identify purpose of the business plan
Identify elements of the business
plan
Develop a business plan
Develop strategies for minimising
risks
Identify and review the essential components of the business plan
Identify and document business goals and objectives as a basis for
measuring business performance
Research resources, legal and compliance requirements, specifically in
relation to occupational health and safety (OHS), in accordance with
business goals and objectives
Research market needs, and market size and potential
Identify sources and costs of finance, from the financial plan, to provide
required liquidity and profitability for the business
Identify methods, from the marketing strategies, to promote the market
exposure of the business
Identify methods/means of production/operation from the
production/operations plan to conform with business goals and objectives
Identify staffing requirements to effectively produce/deliver
products/services
Identify specialist services and sources of advice, where required, and cost
in accordance with resources available
Identify specific interests and objectives of relevant people and seek and
confirm their support of the planned business direction
Identify and develop risk management strategies according to business
goals and objectives, and relevant legal requirements
Develop contingency plan to address possible areas of non-conformance
with the plan
Page 20 of 32
Internal Use Only
Satisfactory
Yes
No
Required
Skills
Critical Aspects of
Assessment
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit

development of a business plan which provides for finance,
marketing and provision of products/services to facilitate the
business goals and objectives
identification of and planning for, OHS and duty of care
responsibilities
development of risk management strategies

knowledge of relevant legislation

communication skills to assess business performance
literacy skills to enable interpretation of business information
numeracy skills to analyse data

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
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OHS responsibilities and procedures for identifying hazards relevant
to the business
planning processes

preparation of a business plan

principles of risk management relevant to business planning

reasons for and benefits of, business planning

relevant industry codes of practice

setting goals and objectives

types of business planning - feasibility studies; strategic,
operational, financial and marketing planning
Knowledge

Required
commonwealth, state/territory and local government legislative
requirements relating to business operation, especially in regard to
OHS and environmental issues, equal employment opportunity,
industrial relations and anti-discrimination
methods of evaluation
Page 21 of 32
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
BSBSMB405B Monitor and manage small business operations
Element
Develop operational strategies
and procedures
Implement operational strategies
and procedures
Monitor business performance
Performance Criteria
Evidence Provided
Develop an action plan to provide a clear and coherent direction, in
accordance with the business goals and objectives
Identify occupational health and safety (OHS) and environmental issues
and implement strategies to minimise risk factors
Develop a quality system for the business in line with industry standards,
compliance requirements and cultural criteria
Develop performance measures and operational targets to conform with
the business plan
Develop strategies for innovation, including the utilisation of existing, new
or emerging technologies, where practicable, to optimise business
performance
Implement systems and key performance indicators/targets to monitor
business performance and customer satisfaction
Implement systems to control stock, expenditure/cost, wastage/shrinkage
and risks to health and safety in accordance with the business plan
Maintain staffing requirements, where applicable, within budget to
maximise productivity
Carry out the provision of goods/services in accordance with established
legal, ethical cultural and technical standards
Provide goods/services in accordance with time, cost and quality
specifications, and customer requirements
Apply quality procedures to address product/service and customer
requirements
Regularly monitor/review the achievement of operational targets to ensure
optimum business performance, in accordance with the business plan goals
and objectives
Review systems and structures, with a view to more effectively supporting
business performance
Investigate and analyse operating problems to establish causes and
implement changes as required as part of the business quality system
Amend operational policies and procedures to incorporate corrective action
Page 22 of 32
Internal Use Only
Satisfactory
Yes
No
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
Critical
Aspects of
Assessment
Review business operations
Review and adjust business plan, as required, to maintain business
viability, in accordance with business goals and objectives
Clearly record proposed changes to aid future planning and evaluation
Undertake ongoing research into new business opportunities and adjust
business goals and objectives as new business opportunities arise

developing strategies and procedures to successfully manage the
operation of the business

making appropriate adjustments to the business operations as
required

knowledge of quality system principles and methods

analytical skills to develop criteria and targets for the business plan
communication skills to question, clarify and report
literacy skills to interpret legal requirements, company policies and
procedures
numeracy skills to manage performance information and to control
the finances
technology skills to use relevant business equipment
methods for developing and maintaining networks

methods for implementing operation and revenue control systems

methods for monitoring performance and implementing
improvements
OHS responsibilities and procedures for managing hazards

Skills
Required






principles of risk management relevant to the business, including
risk assessment
quality system principles and methods

relevant industry codes of practice

relevant marketing, sales and financial concepts

relevant performance measures

role of innovation


systems to manage staff, stock, expenditure, services and customer
service
environmentally sustainable business practice and operation

technical or specialist skills relevant to the business operation
Knowledge
Required

Page 23 of 32
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
BSBSMB406A Manage small business finances
Element
Implement financial plan
Critical
Aspects of
Assessment
Monitor financial performance
Performance Criteria
Evidence Provided
Identify financial information requirements and obtain specialist services,
as required, to profitably operate and extend the business in accordance
with the business plan
Produce financial budgets/projections, including cash flow estimates, as
required for each forward period, and distribute to relevant people in
accordance with legal requirements
Negotiate, secure and manage business capital to best enable
implementation of the business plan and to meet the requirements of
financial backers
Develop and maintain strategies to enable adequate financial provision for
taxation in accordance with legal requirements
Develop, monitor and maintain client credit policies, including
contingencies for debtors in default, to maximise cash flow
Select key performance indicators to enable ongoing monitoring of
financial performance
Record and communicate financial procedures to relevant people to
facilitate implementation of the business plan
Regularly monitor and report on financial performance targets and analyse
data to establish the extent to which the financial plan has been met
Monitor marketing and operational strategies for their effects on the
financial plan
Calculate and evaluate financial ratios according to own/industry
benchmarks
Assess financial plan to determine whether variations or alternative plans
are needed, and change as required

development, implementation and review of strategies for the
ongoing management of finance

maintenance of day-to-day financial management of the business
as well as implementation of broad financial strategies

knowledge of purpose of financial reports

Page 24 of 32
Internal Use Only
Satisfactory
Yes
No
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit

analytical skills to interpret financial data
communication skills to negotiate capital and to report on
performance
literacy skills to interpret legal requirements and financial reports
numeracy skills to calculate costs, prices, profit and other financial
information
benchmarking

financial decision making relevant to the business

financial indicators

purpose of financial reports

preparation and interpretation of budget/actual reports

principles for preparation of balance sheets and their interpretation

principles for preparation of profit and loss statements and their
interpretation
stock records/stock control relevant to the business
Knowledge
Required
Required
Skills





Page 25 of 32
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
BSBSMB407A Manage a small team
Element
Develop staffing plan
Recruit, induct, train and retain
the team
Comply with industrial relations
obligations
Maintain staff records
Performance Criteria
Evidence Provided
Determine staffing requirements to allow the business to run effectively, in
accordance with the business requirements as outlined in the business plan
Identify and compare the existing skills/competencies of owner/s and staff
with business requirements to identify any gaps
Develop policies and procedures for owner/s and staff, in accordance with
the business plan
Develop job/position descriptions, competencies required and selection
criteria to meet the needs of the business
Judge information obtained from each candidate against specified selection
criteria and decide selection in accordance with business needs and legal
requirements
Induct new staff members in accordance with the policies and procedures
of the business
Make team members aware of their responsibilities and performance
requirements as soon as practicable and take opportunities to coach team
members who are unfamiliar with the procedures of the business
Develop and implement a staff development program and career paths
based on the requirements of business and staff competencies
Advertise staff vacancies appropriately in accordance with staffing plan
Clarify workplace rights and obligations of employers and employees, in
accordance with legal requirements and codes of practice
Counsel staff, if required, in a positive and constructive manner and record
outcomes accurately
Develop staff records system to provide timely and accurate information, in
accordance with confidentiality, legal and taxation requirements
Monitor and accurately maintain the system for recording and retrieving
personnel and payroll information and seek specialist advice where
required
Page 26 of 32
Internal Use Only
Satisfactory
Yes
No
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
Manage staff
Skills
Required
Critical
Aspects of
Assessment
Review team performance
Regularly review contribution and skills of self and other team members to
ensure performance is in line with agreed performance measures
Monitor and adjust staffing requirements to respond to any
changes in tasks and functions required by the business
Support and encourage staff, and acknowledge and reward their
contribution to the business
Regularly provide opportunities for staff to discuss work related issues
Develop contingency plans to cope with unexpected or extreme situations
and take appropriate corrective action as required
Develop positive and constructive relationships with and between team
members
Review and update team objectives in support of business goals
on a regular basis in consultation with team members
Identify strengths and weaknesses of team against current and expected
work requirements
Schedule time, on a regular basis, for team members to review work
operations in order to maintain and improve operational efficiency
Encourage team members to monitor their own performance,
suggest improvements and to identify professional development
needs, in accordance with personal and business requirements
Monitor and review staff turnover rate

managing a small team including staff selection, staff records,
induction, training and development

developing and maintaining team performance to enhance business
operations

knowledge of relevant legislative requirements affecting business
operation

analytical skills to identify workplace skill gaps

coaching skills

communication skills to relate to staff

conflict resolution skills

literacy skills to interpret legal requirements, to compile reports and
to prepare a job/position description

team building and motivation skills
Page 27 of 32
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit

commonwealth, state/territory and local government legislative
requirements relating to business operation, especially in regard to
occupational health and safety (OHS) and environmental issues,
equal employment opportunity (EEO), industrial relations and antidiscrimination
OHS responsibilities and procedures for managing hazards

relevant industry awards/enterprise agreements

staff development and career planning

staff counselling, grievance and disciplinary procedures

unfair dismissal legislation and procedures
Knowledge
Required

Page 28 of 32
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
BSBSMB408B Manage personal, family, cultural and business obligations
Element
Identify personal and business
commitments/obligations within
family, cultural and community
contexts
Develop ethical work practices
within family, cultural and
community contexts
Review work practices within
family, cultural and community
contexts
Performance Criteria
Evidence Provided
Identify the personal, family, cultural and/or community contexts in which
the business operates
Identify the personal, family, cultural and/or community
commitments/obligations that impact on the business
Consider strategies to address and minimise the negative impact these
commitments/obligations may have on the business
Prepare workable plans to address and minimise the impact of these issues
Develop a culturally appropriate work ethic in terms of personal, family and
community obligations, and cultural requirements
Identify and implement strategies to reinforce a culturally appropriate work
ethic in the business
Prepare contingency plans for when alternative action is required due to
changes within the business, family, cultural and/or community
environments
Monitor personal, family, cultural and/or community
commitments/obligations to identify any changes that might impact on the
business
Review plans and strategies to ensure that negative impacts of any
commitments/obligations are being addressed and implement any
necessary changes
Monitor implementation of the culturally appropriate work ethic to ensure
that it is supported and maintained in the business
Page 29 of 32
Internal Use Only
Satisfactory
Yes
No
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
Knowledge
Required
Required
Skills
Critical Aspects of
Assessment




completeness in terms of scope and detail of analysis of the
implications of family, cultural and community
obligations/commitments on self, staff and the business
clarification of a culturally appropriate work ethic and the
workability of plans and strategies for maintaining this ethic
plans and strategies to address the negative impact
obligations/commitments may have on the business
knowledge of characteristics of small business and its environment.

analytical skills to identify own obligations
communication skills to clarify needs and to articulate business
ideas to a range of family/community members
interpersonal skills to negotiate/mediate with sensitivity towards
family and/or cross-cultural issues
characteristics of small business and its environment

community and family expectations and dynamics

cultural and family relationships

historical/cultural/ceremonial/religious/family issues that are
relevant to specific communities
life/work balances particularly relating to health











local community and relevant organisations and persons within the
community
relevant legislation, codes and national standards from all levels of
government which may effect business operation, such as:
award and enterprise agreements and relevant industrial
instruments
anti-discrimination
equal opportunity
OHS
relevant industry codes of practices
Page 30 of 32
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit
BSBSMB409A Build and maintain relationships with small business stakeholders
Element
Performance Criteria
Evidence Provided
Internal Use Only
Satisfactory
Yes
Establish and develop
communication and appropriate
relationships with key
stakeholders
Establish specific practices for communication with key stakeholders, in
accordance with codes of practice, cultural protocols and agreed roles and
responsibilities
Maintain specific ways of dealing with issues in communication with key
stakeholders that adhere to codes of practice, cultural protocols and agreed
roles and responsibilities
Identify and implement methods of working in culturally appropriate ways
Identify and implement plans to deal with changes in circumstances and
behaviours, as required
Establish and develop roles and
responsibilities in the small
business
Clearly and accurately clarify roles and responsibilities in the business in
accordance with organisational structure and lines of authority, codes of
practice and job documentation
Identify and apply specific practices and behaviours from the codes of
practice, that contribute to successful working relationships
Clearly communicate responsibilities and practices to key stakeholders
Review relationships with key
stakeholders
Review communication practices used with key stakeholders and implement
any necessary improvement strategies
Monitor and evaluate relationships with key stakeholders and develop
action plan/s needed to enhance relationships
Evaluate roles and responsibilities in the business and undertake any
revisions necessary to improve successful working relationships
Page 31 of 32
No
BSB40407 Certificate IV in Small Business Management
Recognition of Prior Learning (RPL) Kit

ways of working and communicating with key stakeholders based
on the roles and responsibilities, codes of practice and cultural
protocols for the business
development and communication of roles, responsibilities, duties
and tasks of small business personnel to key stakeholders
process for reviewing relationships with key stakeholders

knowledge of organisational structures and their legal implications.

analytical skills to assess situations for the core issues


communication skills to consult with various stakeholders, adjusting
one's language to meet the language of stakeholders; to negotiate
constructively to achieve outcomes; to work cooperatively with a
diverse range of people with different needs
literacy skills to locate relevant information, and to develop job
outlines and codes of practice for the business
problem-solving skills to deal with stakeholder issues

business ethics

codes of practice for the business

organisational structures and their legal implications

Skills
Required
Knowledge
Required
Critical Aspects of
Assessment


Page 32 of 32