Y our road to success. ABE Level 3 Certificate in Business Start-up EXPANDING HORIZONS

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1 Y our road to success ABE Level 3 Certificate in Business Start-up EXPANDING HORIZONS

2 The greatest solution of all is to live and work in partnership with yourself, your family and friends, your work and community, your nation, your world. Marc Allen

3 ABE Business Qualifications Are you worried about being unemployed, or stuck in an unfulfilling job? It doesn t have to be like this. In our practical course you will create a robust business plan and gain the skills and knowledge you need to start a business. You don t have to have an original idea when you start all you need is the determination to succeed and a willingness to learn. If you do have an idea or an existing trade, this qualification can help you raise your game to become an entrepreneur. Our qualification is designed to fast track your skills and knowledge so you can start achieving your dreams. Good luck. You can locate a centre closest to you by visiting our website at Contents Why study ABE Level 3 Certificate in Business Start-up What is it? Who is it for? What will I learn? Qualification overview Localisation Glossary of qualification terms Element 1: Analyse entrepreneurial and market potential Element 2: Build the business idea Element 3: Developing the marketing approach Element 4: Plan the operations Element 5: Plan the budget Element 6: Create the business plan and pitch So what next?

4 Get the knowledge you need DeterminaTIOn Why study ABE Level 3 Certificate in Business Start-up Around the world we are seeing a new mind-set where people are no longer thinking about employment they are thinking about generating wealth for themselves and for their communities. But the big idea to work for yourself still needs careful and considered planning. So many would-be entrepreneurs fail at the first hurdle because they don t know enough about business to succeed. That s where we come in. 2 Ofqual QAN 603/0048/6 3

5 You can write a robust business plan and launch your business! What is it? The ABE Level 3 Certificate in Business Start-up gives you the skills and experience to create a robust business plan and start your own enterprise. The course develops your ability to research, plan, budget and reduce risk to ensure success and growth. PLAN CREATE GROW You will gain the knowledge and confidence you need to run a successful business and learn the mechanics of running a business day-to-day. These core skills can be applied to any business venture, whether you want to set-up a café or a digital business, it gives you the foundations to do this. Who is it for? People with a trade who want to work for themselves People with an idea but no business experience Young people who want an A level equivalent People who think they are wasted in their job People who don t have a job and need to earn a living 4 Ofqual QAN 603/0048/6

6 On completion of the qualification learners will have a viable and realistic business plan. With this plan they can seek investment, successfully launch their business and run it competently once trading begins. Kate Winter, Director of International Marketing 5

7 CONFIDENCE Surprise yourself and achieve your potential Learn the mechanics of running a business Gain the confidence and skills to start a business What will I learn? How to research and build a business proposition How to analyse competitors How to write a business plan How to pitch How to plan Legal requirements in your country What you need to do to raise your skills How to manage a business day-to-day How to recognise when things are going wrong 6 Ofqual QAN 603/0048/6 7

8 QUALIFICATION OVERVIEW Below is an overview of the key capabilities, designed to support the owners of new business start-ups, built by taking this ABE Level 3 Certificate in Business Start-up. Element 1 Analyse entrepreneurial and market potential Ability to assess the marketing environment and how it impacts and influences your business idea Ability to assess your own capability against the needs of the proposed business venture Element 2 Build the business idea Ability to scope and refine a business idea what it might look like, feel like, act like and be like and the ability to research the market to make sure the business idea is of interest to your customers Element 3 Developing the marketing approach Ability to build the unique selling proposition, to know who the customer and market is and how to approach them Ability to create the scope of the product and/or service and the ability to price it, promote it, sell it and service it whilst building brand recognition Element 4 Plan the operations Ability to identify the need for the right legal set-up for the new business venture, while identifying the right people, operational processes and resources for the new business start-up Element 5 Plan the budget Ability to develop a funding and operational budget for the new business start-up, including a daily cash flow along with setting key business performance indicators to monitor performance Element 6 Create the business plan and pitch Ability to develop a business plan that incorporates all of the above Ability to pitch and present effectively for business funding from a range of sources 8 Ofqual QAN 603/0048/6

9 More about your qualification Find a centre near you today What level is this qualification? The ABE Certificate in Business Start-up is a Level 3 qualification, which is similar in size to an A Level. How many credits is this qualification worth? The qualification is 36 credits, each credit being worth 10 hours of learning, either self-study or guided learning time. How long will it take me to complete my learning? This qualification can be delivered flexibly, so the duration will depend on which study centre you register with. The course could be taken either full or part time. The qualification has a value of 36 credits, with each credit worth 10 hours of learning time, so the Total Qualification Time (TQT) for the qualification is 360 hours. ABE recommend that 240 of those hours are made up of guided learning (i.e. face to face teaching time, mentoring, formative assessment etc.). The remaining hours should be spent studying independently and studying for your assessment. How will I undertake my learning? Learning could be a combination of: Face to face teaching time Mentoring and coaching from external employers and/or tutors E-learning Formative assessment Live webinars Assessment support for assignment. How is the qualification assessed? The qualification will be assessed by a combination of formative and summative assessments. You will complete a formative assignment for each of the first five Elements which will then contribute to the final summative assessment for Element 6 which will form a business plan. The final summative assignment will be submitted to ABE once complete. ABE will set the assignments, including the provision of templates which you can choose to use to complete your assignment if you wish. What is the entry criteria for this qualification? This is an open entry. For English language requirements, please see the ABE website for more details. 9

10 Localisation How to take on board the local business environment in learning and assessment. It is really important for learners undertaking the ABE Level 3 Certificate in Business Start-up to set up their new business venture in the context of their local business environment, wherever that might be in the world. Learners should take into account the following when preparing their business plan which is ultimately submitted for assessment: Local culture, identity and the local environment and how it impacts the business Local social and community agendas Local legal and taxation arrangements Local funding opportunities Local business rules and regulations Local employment rules, regulations and legislation Local currency various and fluctuations The aim is that learners undertaking this qualification develop a sustainable and effective business plan relevant to their own local market. Glossary of qualification terms To assist you in your understanding of the qualifications, ABE has defined the following terms: Qualification - For the purpose of this qualification, upon passing your assessment, you will be awarded the ABE Level 3 Certificate in Business Start-up. The qualification is therefore the outcome of your studies and assessment and represents your achievement. Total Qualification Time (TQT) - is a notional value given to estimate the total amount of time that it could reasonably be expected a learner to take to achieve the qualification. Guided Learning Hours (GLH) - is an element of the TQT and is an estimate of the number of hours during which the learner is given specific guidance by their tutor towards the achievement of the qualification, for example: face to face teaching, e-learning, mentoring etc. Element - An element represents a segment of learning within the ABE Level 3 Certificate in Business Start-up. Each individual element has its own rationale and content. Overarching learning outcomes - The learning outcome within an element lays down the expectations of the learner and defines the level of knowledge and understanding required in order to be fully prepared to complete the ABE assessment. Assessment criteria - These appear within each of the elements and like the overarching learning outcomes they determine the knowledge and understanding of your learning and assessment. Indicative content - The indicative content is the scope of knowledge required in order to fulfil the assessment requirements and achieve the learning outcome; it also outlines the technical components of the programme. Weighing - The way in which the assessment criteria is emphasised in terms of teaching, learner effort and emphasis in assessment. 10 Ofqual QAN 603/0048/6

11 Those who have completed the ABE courses are nowadays occupying senior posts such as CEOs, directors or business analysts in well-known companies both across the country and abroad. Selveena Parmanum, Mauritius 11

12 Analyse entrepreneurial and market potential Introduction Setting up a new business requires a range of skills and characteristics to support the ideas and ongoing success of the business. Learners will consider the skills and capabilities, alongside their entrepreneurial flair, which they need to develop to ensure success for the start-up. This element also focuses on the importance of gathering information to analyse the market for the new business idea. The results of the data gathering will also contribute towards an informed business plan. 12 Ofqual QAN 603/0048/6 Overarching learning outcomes On completing Element 1, you will be able to: Produce a plan to develop the business skills and attributes required to support a successful business venture Identify information sources to produce a business plan and inform an external market analysis Explain the importance of understanding the external environment and its potential impact on business success Get the knowledge you need

13 Assessment Criteria 1 Produce a plan to develop the entrepreneurial skills and attributes required to support a successful business venture (Weighting 20%) 1.1 Explain the entrepreneur s role in relation to business start-up success Definitions of entrepreneurship and required skills, attributes and characteristics Examples of successful entrepreneurs and business start-ups Recognition that innovation alone does not ensure business success Risks of being an entrepreneur/running a business start-up 1.2 Produce a personal development plan to enhance personal performance and support a successful business start-up Benchmark personal skills, attributes and characteristics against those of successful entrepreneurs Personal development planning approaches including skill analysis, goals, actions, time scale and success criteria, which you will apply to develop your business plan 2 Identify information sources to produce a business plan and inform an external market analysis (Weighting 20%) 2.1 Explain the purpose and benefit of the business plan for a business start-up Define business direction and focus for the short, medium and long-term Business operations and finances; securing funding Measures and milestones Decision making ensuring objectivity and accountability; risk of emotional decision making and ensuring objectivity and accountability 2.2 Explain how to gather information to make informed business decisions Primary research (concept testing, market testing, survey, interviews, focus groups) The importance of quantitative and qualitative data Sources of secondary information; macroenvironmental: industry, consumer, and business-to-business (B2B) information 3 Explain the importance of the external environment and its potential impact on business success (Weighting 60%) 3.1 Describe the PESTEL stages of the macro environment, relevant to a business start-up The political/legal environment including data relevant to a business start-up such as laws and regulations, tax rates and incentives, and available funds and grants The economic environment including the business cycle stage, interest rates, inflation rates and labour costs The social environment which is relevant to and likely to affect your business start-up such as demographic data and trends The technological environment and recent developments Environmental factors that create or potentially influence your business idea 3.2 Outline the dimensions of a market analysis for business planning and its importance for a business start-up David A Aaker s dimensions of market analysis: market size and growth rate, profitability, cost structure, distribution channels, market trends and key success factors 3.3 Describe the characteristics of the competitive environment and the level of competition in an industry using Porter s Five Forces Analysis Threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat and sources of substitutes, rivalry among existing competitors Competitor identification both direct (competitors that offer similar products/services) and indirect (competitors that offer different products/ services to satisfy the same customer needs) Market characteristics 3.4 Describe stakeholders, their importance and impact on the business start-up. The importance and impact of the stakeholder environment Internal and external stakeholder identification Stakeholder analysis, the Mendelow matrix: the dimensions of power and interest Advance to Element 2 Build the business idea E2 4

14 Build the business idea Introduction In this element, learners will progress their business idea by considering who might buy the offering and how it differs to that of competitors. They will seek market feedback to refine the business idea so that the idea becomes a unique concept. Learners will perform a situational analysis to help them to develop measureable objectives to drive both the business and the entrepreneur s own performance. Overarching learning outcomes On completing Element 2, you will be able to: Describe how the business idea is unique from both customer and competitor perspectives Analyse the business idea to support and inform the business plan Find a centre near you today Produce measureable objectives to provide business focus and direction for the business start-up 14 Ofqual QAN 603/0048/6

15 Assessment Criteria 1 Describe how the business idea is unique from both customer and competitor perspectives (Weighting 40%) 1.1 State how the business idea is different to and/or better than competitor offerings to enhance the probability of success for the start-up Describe the business idea in detail: What will be sold a product, a service or both? How will it/they be sold? Additional services that will be offered? Identification of areas where the business idea is the same, better or weaker than competitors Refine the business idea to produce a business concept statement Role of patents, copyright and trademarks 1.2 Identify potential customers that may respond positively to the business idea Approaches to market segmentation: businessto-consumer (B2C) and business-to-business (B2B) bases Select, scope and define target segment(s), the customer profile: their characteristics, the size of the segment and level of demand 1.3 Develop a Unique Selling Proposition (USP) to differentiate the product/service from its competitors and communicate the benefit(s) for customers The purpose, definition and examples of a USP Use the primary research to gather feedback from potential customers Refining the product/service idea further, why it s better than the competition Develop the product/service USP 2 Analyse the business idea to support and inform the business plan (Weighting 40%) 2.1 Explain the role of market analysis in business planning the business start-up and how it feeds into the SWOT Analysis (2.2) Informing the overall business planning and strategy cycle Risk assessment and mitigation Market opportunity 2.2 Analyse the strengths, weaknesses, opportunities and threats for the business start-up Opportunity and threat identification: information from the market analysis, competitive environment and macro environment Exploiting strengths and seizing opportunities Opportunities with high potential and/or any market gaps that could be exploited Strengths and weaknesses identification: information from the Personal Development Plan (PDP) and results of primary customer research 3 Produce measureable business objectives to provide focus and direction for a business start-up (Weighting 20%) 3.1 Describe the purpose and content of business objectives to ensure appropriate performance for the business start-up Financial objectives: turnover, profitability, growth, costs Non-financial objectives: personal (drive, ambition, motivation), lifestyle (time, freedom, pursuit of an interest or talent), social (giving back, helping others, philanthropy) 3.2 Develop objectives to enable business performance to be monitored Specific, measureable, achievable, realistic, time-based (SMART) objectives Short, medium and long term objectives for start-up plan Critical Success Factors (CSFs) identification for the business Key Performance Indicators (KPIs); financial and non-financial Performance measures and key milestones for financial objectives and non-financial objectives at start-up Advance to Element 3 Developing the market approach E3 4 15

16 Developing the marketing approach Introduction Having scoped the product/service idea, it s time to build the marketing plan. Generating a loyal customer base can be critical to long-term business success. In this element learners will explore and refine the business idea and product/service though the development of a positioning strategy that uses the marketing mix. 16 Ofqual QAN 603/0048/6 Overarching learning outcomes On completing Element 3, you will be able to: Describe and improve the business idea using the marketing mix relevant to the business start-up Define and position the Unique Selling Proposition (USP) to build the business identity and influence customer perceptions Develop sales pitches that can be used to drive sales and/or to encourage investment in a start-up Get the knowledge you need

17 Assessment Criteria 1 Describe and improve the business idea using the marketing mix (Weighting 60%) 1.1 Explain the role of marketing for a business Definitions of marketing and key principles Marketing orientation and examples of marketing orientated companies The importance of customer acquisition and retention 1.2 Define each element of the marketing mix and how it could contribute to customer satisfaction Product: name, brand, features, range of products/services Price: what the customer will pay, competitor pricing, cost to the business Place: level of distribution, direct or indirect distribution, channel intermediaries. Promotion: traditional and digital approaches 4 Cs of Digital marketing: customer value, costs, communications, convenience People: training and motivation, excellent customer service Process: ease of doing business, the customer experience. Physical evidence: branding; logo, marketing collateral, website, uniform 2 Define and position the Unique Selling Proposition (USP) to build the business identity and influence customer perceptions (Weighting 10%) 2.1 Produce a perceptual map to identify the position for a start-up Perceptual maps and the importance of customer perception The attributes that customers consider when comparing products in a market Use a perceptual map to identify the position for a start-up idea in relation to competitors 3 Develop a sales pitch that an entrepreneur could use to drive sales or encourage investment in the start-up (Weighting 30%) 3.1 Develop a convincing pitch to attract potential investors attention and generate further interest or action for the start-up The concept of pitching for funding Structuring a pitch, including ROI; growth; market; competitors; business focus; business benefits Creation of an effective pitch 3.2 Explain the skills involved in communicating the USP and persuading potential customers to purchase Definitions of persuasiveness and its importance for the entrepreneur The skill of using effective words, voice and non-verbal language to: -- Deliver an effective sales pitch -- Persuading potential customers to purchase -- Communicate the USP and the customer benefits Advance to Element 4 Plan the operations E4 4 The content of the programme is effective, it brings out your potential and builds you into a professional. Gisele Bumah, Cameroon 17

18 Plan the operations Introduction The operations plan helps the entrepreneur to structure the actions required to get the business up and running, as well as to maintain the ongoing day-to-day operations. Learners will explore the operational needs at start-up stage and the resources required for the longer term. Learners will also explore the regulations and legislation that must be observed to ensure that the business operates within the law. Overarching learning outcomes On completing Element 4, you will be able to: Identify local legal structures and regulations relevant to a business start-up Describe the local requirements and resources required to enable a start-up to provide its products/services Find a centre near you today Explain how the business will operate at launch and on and ongoing basis 18 Ofqual QAN 603/0048/6

19 Assessment Criteria 1 Identify local legal structures and regulations relevant to a business start-up (Weighting 30%) 1.1 Identify a suitable legal structure for a new business Advantages and disadvantages of alternative local legal structures: sole trader/ proprietorships, partnership, limited liability company, limited liability partnership; licensing; franchising The legal responsibilities of each structure within the country of operation: paperwork, taxes, personal responsibilities and liability 1.2 Identify relevant local regulations for a start-up to ensure it operates within the law Health and Safety legislation Employment legislation Consumer protection legislation and trading standards 3 Explain how the business will operate at launch and on an ongoing basis (Weighting 40%) 3.1 Describe the activities to support a successful start-up launch The importance of stakeholder buy-in, building stakeholder relationships, securing support and networking Promotional activities and stimulating interest: public relations (PR), online communications, social media, and advertising Employee training and development 3.2 Describe business functions and activities to assist in managing the business on a day-to-day basis Roles and responsibilities and activities in the day-to-day business operation Customer experience and dealing with any complaints 2 Describe the local requirements and resources required to enable a start-up to provide its products/services (Weighting 30%) 2.1 Identify the physical resources and the related costs for a business start-up Premises: location and physical requirements and modifications required; buying and leasing considerations Plant, equipment and security: machinery, IT requirements, furniture; buying and leasing considerations Raw materials/stock Supplier identification and selection Contracting suppliers Insurance 2.2 Identify the human resources and the related costs for a business start-up Staffing requirements with details of both skills and staff numbers, job description preparation Recruitment options: advertising, word-ofmouth, agency Employment costs: salary, insurance, pension obligations, sick pay, maternity/paternity pay/ rights, holiday pay On-boarding plans, e.g. inductions, training Ongoing day to day and performance management Advance to Element 5 Plan the budget E5 4 ABE is a better option to acquire the knowledge to run a business if you want to become a successful manager. Joseph Makwangwala, Malawi 19

20 Plan the budget Introduction Effective budgeting and forecasting are critical for business success and are areas that can prove challenging for a business that has no historical financial information. This element will enable learners to produce key financial records and statements that can be used to generate initial funding for the new business. The financial statements will also provide a framework to give focus and discipline for the entrepreneur and assist them in managing the business on day-to-day basis. Overarching learning outcomes On completing Element 5, you will be able to: Produce financial forecasts and budgets to assist in sourcing finances and inform the business plan for a start-up Produce an operating budget for managing the day-to-day business using financial information to manage performance and spot failures Get the knowledge you need 20 Ofqual QAN 603/0048/6

21 Assessment Criteria 1 Produce financial forecasts and budgets to assist in sourcing finances and inform the business plan for a start-up (Weighting 60%) 1.1 Explain the purpose and benefits of producing accurate financial records for start-up and ongoing management of a business The difference between budgets and forecasts Researching and gathering accurate information to inform financial analysis and the challenge when a start-up does not have historical records Using financial information in a start-up business plan to generate funding 1.2 Explain the financial and legal responsibilities and liabilities that a business and its director(s)/owner(s) must fulfil to comply with legal requirements The obligations that are relevant to a company s legal structure The obligations for directors Business taxes Filing personal and company tax returns 1.3 Prepare financial documents to meet requirements and inform the business plan A market driven sales forecast: conservative and aggressive Start-up budget: identification of start-up costs: legal fees, insurance, fixed assets, stock, leasing costs etc. Break-even analysis; profitability mark-up and margin; and profit forecast 1.4 Identify potential sources of finance for the start-up, and the relative costs and terms Equity finance: angel investors, venture capitalists, institutional investors, crowdfunding, community funding schemes/incentives etc. Debt finance: banks and other corporate lenders. Other sources: government schemes and grants, charity schemes, family and friends etc. 2 Produce an operating budget for managing the day-to-day business using financial information to manage performance and spot the potential for failure. (Weighting 40%) 2.1 Set up a day-to-day operating budget that allows for the management of cash flow and daily operational requirements An operating budget: identification of operating costs fixed and variable A cash flow forecast for the first year of operation 2.2 Describe the requirements for maintaining up to date accounting records to help the day to day operation of the business A cash flow forecast for the first year of operation The content and purpose of the profit and loss statement and the balance sheet Advance to Element 6 Create the business plan and pitch E6 4 I chose to study ABE because it is globally recognised and has very high standards. That s why winning such a great award really means a lot to me. Hsu Myat Aung, Myanmar 21

22 Create the business plan and pitch Find a centre near you today Introduction At this stage of the qualification learners will have accumulated a wealth of information that requires organising and structuring into a feasible business plan. The business plan provides the entrepreneur with the ability to evaluate the business objectively and resolve any potential problems before business launch. The business plan must clearly communicate the vision for the new business if it is to attract investment. Overarching learning outcomes On completing Element 6, you will be able to: Prepare a business plan that can be used to secure funding and assist the entrepreneur in the ongoing management of the business Prepare a pitch that delivers key information and drives potential investors to explore the start-up in further depth Reflect on the process of developing a business plan and pitch as part of the entrepreneur s personal development (developed in Element 2) in order to identify areas for further development to support the business start-up s success 22 Ofqual QAN 603/0048/6

23 Assessment Criteria 1 Prepare a business plan that can be used to secure funding and assist the entrepreneur in the ongoing management of the business (Weighting 50%) 1.1 Produce a business plan to generate funding and to drive start-up success The structure and content of the business plan Populate the business plan using objective data and information The importance of Critical Success Factors (CSFs) for the business Key Performance Indicators (KPIs); financial and non-financial 2 Prepare a pitch that delivers key information and drives potential investors to explore the start-up in further depth (Weighting 30%) 2.1 Prepare a pitch that could be used to stimulate interest from potential investors Pitching verbally: selling the entrepreneur and the business concept, summarising the business plan, influencing others positively, persuading others that the business plan will succeed, generating additional interest Designing and structuring a pitch: know the audience, be focused and provide hard facts, deliver the message, use of presentation slides and/or aids ABE has taught me to analyse the many internal and external factors that affect an organisation much more critically. 3 Reflect on the process of developing a business plan and pitch as part of the entrepreneur s personal development (developed in Element 2) in order to identify areas for further development to support the business start-up s success (Weighting 20%) 3.1 Review the business plan and pitch to improve approach, structure and content Business plan review: content, data (correct, valid, current) Business pitch review: structure, content and communication skills 3.2 Review the PDP (developed in Element 1) to highlight successes and areas for further development The skills, attributes and characteristics that have been successfully developed and those where further development is necessary Additional skills that, through completing the units of this qualification, have been identified Additional skills that will be required to successfully manage the start-up on an ongoing basis Updating the PDP including skill/knowledge identification, goals, actions, time scale and success criteria 3.3 Produce an updated PDP to continue to improve personal performance and to build entrepreneurial skills to drive and develop a successful business start-up Lifelong learning and development and why it s important Reviewing the skills, attributes and characteristics that have been successfully developed and those where further development is necessary Mentoring and coaching and its role in enhancing continued high performance Shanna Bruno, St Lucia 23

24 I love the format of the study programme. Theory is good but more important to me is that ABE helps me to be more practical whether I m home or at work. Toshanna Allicock, Guyana Get online and sign up today! EXPERIENCE So what next? We say that there is no time like the present to begin your journey towards success and pursue a prosperous career in business. So don t delay, take the opportunity now to sign up for a course and start towards earning your qualification in Business Start-up. It could be the best decision you make this year and could open up brand new horizons for you in the future. Believe in success. 24 Ofqual QAN 603/0048/6 25

25 Y our road to success THINK DIFFERENTLY Build a brighter future for yourself, your family, your community, and your country Search ABE Qualifications