Small Business Startup

Aim and purpose 

The aim of this unit is to enable learners to understand the skills needed to set up and run a business, and the regulations that need to be complied with, and to have the opportunity to prepare a detailed business plan. 

Unit introduction 

Starting a small business is an ambition for many people. The business idea could be almost anything such as a coffee shop, a courier service, a hairdresser, a motor vehicle repair workshop, a DJ service, a painting and decorating business, an equipment hire operation, or an organic smallholding producing fruit and vegetables. However, starting a small business can be fraught with difficulties and the idea may not always be successfully realised. Those setting out on this venture need to consider the business idea, where funding will come from, the potential market, the competition and a host of other issues that must be addressed if the business startup is to be successful. 

This unit gives learners the opportunity to consider their business idea within structured business parameters, such as the type of business, the attractiveness of the business idea, the target market and the need to balance personal and business needs. Learners will also consider their ability to run the business, including the skills they already have to support the business idea and what personal development they may have to undertake in order for the venture to be successful. 

Learners will also develop their knowledge and understanding of the legal status and trading terms and conditions of their proposed business, legal aspects such as fire regulations, taxation, VAT and HM Revenue and Customs, and financial aspects such as start-up and operational costs, as well as personal needs. 

Learners will have the opportunity to devise an outline proposal for a business start up. This will cover the reasons for preparing a business proposal and will include the components expected by financial advisers, including the type of business, its target market, available resources, financial information and forward planning. 

Learning outcomes 

On completion of this unit a learner should: 

1 Be able to present the initial business idea using relevant criteria 

2 Understand the skills and personal development needed to run the business successfully 

3 Know the legal and financial aspects that will affect the start up of the business 

4 Be able to produce an outline business start-up proposal.