Unit 36: Starting a Small Business
Unit code: Y/502/5487
QCF Level 3: BTEC National
Credit value: 10
Guided learning hours: 60
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 start-
up 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.
Edexcel BTEC Level 3 Nationals specification in Business
– Issue 2 – June 2010 © Edexcel Limited 2010
1
, Unit content
1 Be able to present the initial business idea using relevant criteria
Criteria: type eg new, purchase an existing business, franchise; aims; business planning; attractiveness of
idea eg unique selling point, demand for new business, competitive edge; balancing personal/business
needs; checking profitability; business trends; external influences eg commercial, political, local, national,
international; self-esteem eg work for self, independence, power, achievement
Identifying target market: eg market research, published research, sales forecasts, customers’ actions and
choices, effect on business, competition, strengths and weaknesses, market trends; environmental issues
2 Understand the skills and personal development needed to run the business
successfully
Skills: own contribution; technical/operational – relating to products/services, management, recording and
checking performance of business, personal selling, administration, previous experience, strengths and
weaknesses
Development: identify skills gap/shortages; professional help; training; planning; cost implications;
accessibility; timescales
3 Know the legal and financial aspects that will affect the start up of the business
Legal aspects: legal status eg sole trader, partnership, limited company, co-operative; legal liabilities; trading
terms and conditions; trading standards; licences; record keeping; resolving problems; national/local
laws; regulations and bylaws; health and safety; fire regulations; licensing; liabilities; planning permission,
contracts, duties and responsibilities; regulatory bodies; sources of advice
Financial aspects: personal survival budget; cost of premises, equipment and supplies; running costs;
employing staff; pricing policy; break even; cash flow forecasting; profit and loss budgets/accounts; sources
of finance eg grants, loans, borrowing, sponsorship; record keeping
4 Be able to produce an outline business start-up proposal
Business proposal: models; reviewing information and ideas; setting targets and goals; purpose of plan;
components (type of business, market, human/physical/financial resources, financial and profit forecasts,
growth and development, contingencies)
Edexcel BTEC Level 3 Nationals specification in Business
2 – Issue 2 – June 2010 © Edexcel Limited 2010
Unit code: Y/502/5487
QCF Level 3: BTEC National
Credit value: 10
Guided learning hours: 60
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 start-
up 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.
Edexcel BTEC Level 3 Nationals specification in Business
– Issue 2 – June 2010 © Edexcel Limited 2010
1
, Unit content
1 Be able to present the initial business idea using relevant criteria
Criteria: type eg new, purchase an existing business, franchise; aims; business planning; attractiveness of
idea eg unique selling point, demand for new business, competitive edge; balancing personal/business
needs; checking profitability; business trends; external influences eg commercial, political, local, national,
international; self-esteem eg work for self, independence, power, achievement
Identifying target market: eg market research, published research, sales forecasts, customers’ actions and
choices, effect on business, competition, strengths and weaknesses, market trends; environmental issues
2 Understand the skills and personal development needed to run the business
successfully
Skills: own contribution; technical/operational – relating to products/services, management, recording and
checking performance of business, personal selling, administration, previous experience, strengths and
weaknesses
Development: identify skills gap/shortages; professional help; training; planning; cost implications;
accessibility; timescales
3 Know the legal and financial aspects that will affect the start up of the business
Legal aspects: legal status eg sole trader, partnership, limited company, co-operative; legal liabilities; trading
terms and conditions; trading standards; licences; record keeping; resolving problems; national/local
laws; regulations and bylaws; health and safety; fire regulations; licensing; liabilities; planning permission,
contracts, duties and responsibilities; regulatory bodies; sources of advice
Financial aspects: personal survival budget; cost of premises, equipment and supplies; running costs;
employing staff; pricing policy; break even; cash flow forecasting; profit and loss budgets/accounts; sources
of finance eg grants, loans, borrowing, sponsorship; record keeping
4 Be able to produce an outline business start-up proposal
Business proposal: models; reviewing information and ideas; setting targets and goals; purpose of plan;
components (type of business, market, human/physical/financial resources, financial and profit forecasts,
growth and development, contingencies)
Edexcel BTEC Level 3 Nationals specification in Business
2 – Issue 2 – June 2010 © Edexcel Limited 2010
