Unit 36: Starting up a Small Business

clear from the business idea, for example the type of business, what its unique selling points may be, any
external influences (eg location) and so on. Learners should discuss the development of their evidence with
their tutor and, where possible, a business mentor. This presentation can be in the form of a formal report or
a presentation to a group. Where this is the case, tutors should ensure that any business mentors used are
present.

 Business Type Presentation

Unique Selling Point Presentation

External Factors Presentation

Business Aims and Objectives

Introduction to Primary and Secondary Market Research and Questionnaires 

Secondary Market Research; Competition Analysis

Secondary Market Research; Market Trends

Secondary Market Research; Target Market

 P3 describe the skills needed to run the business successfully and what areas require  further personal development

For P3, learners must be realistic about their skills and personal development analysis. Although the small
business idea may not come to fruition, intentions should be realistic and evidence should highlight learners’ awareness of their skills and development opportunities. Learners are not expected to undertake additional development work but need to be aware of what the requirements would be.

 Skills Assessment (External Website)

 Legislation in Business Presentation and Activity

Financial and Legal Aspects of Business

Sale of Goods Act (SOGA)

For P5, the outline business plan should follow a formal report format and can be developed into a
comprehensive document. This should reflect legal aspects relating to the start up of a new business,
but monetary aspects will need to involve some simulation. The report should be supported by an oral
discussion, which may be undertaken with a specialist such as a bank manager

for the proposed business. This will require them to consider a range of methods that could actually be used
and to provide reasons for their choice. Market research will almost certainly be included but learners need to
explain why. Other methods may prove more challenging but the selection and justification should contribute
to a possible business launch, rather than just being a descriptive account of how they could be applied.

For M2, if learners were to launch a business, they would certainly need to undertake further personal
development. P3 has already addressed what areas require further development. At merit level, learners
need to analyse these areas of development and explain how they would pursue each in order to strengthen
their ability to start a business. Examples could include sources of training with appropriate timelines that fit
with the business launch dates.

For M3, learners also need to consider the impact of legal and financial aspects. This may require them to describe systems they will have in place for addressing such issues, such as recording systems for tax and VAT liabilities. Learners may wish to include a summary of how these will be embedded within the overall business
plan.

 Financial and Legal Aspects of Business

Sale of Goods Act (SOGA)

To meet D1, learners need to draw all their evidence together into a comprehensive business proposal that addresses all relevant aspects of business start up. Other pass and merit criteria will already have covered much of the evidence they will need. For distinction level, they need to present all the evidence in a fluent
proposal. Learners should be encouraged to seek guidance on the preparation of their proposal, much as they would do in the real world. They should discuss a draft with their tutor and/or business mentor, making improvements and revisions, before presenting the final version.