Understand the opportunities and risks in running a business

Transcription

1 Understand the opportunities and risks in running a business UV11313 A/503/8863 Learner name: VRQ Learner number:

2 VTCT is the specialist awarding body for the Hairdressing, Beauty Therapy, Complementary Therapy, Hospitality and Catering and Sport and Active Leisure sectors, with over 50 years of experience. VTCT is an awarding body regulated by national organisations including Ofqual, SQA, DfES and CCEA. VTCT is a registered charity investing in education and skills but also giving to good causes in the area of facial disfigurement. Statement of unit achievement By signing this statement of unit achievement you are confirming that all learning outcomes, assessment criteria and range statements have been achieved under specified conditions and that the evidence gathered is authentic. This statement of unit achievement table must be completed prior to claiming certification. Unit code Date achieved Learner signature Assessor initials IV signature (if sampled) Assessor tracking table All assessors using this Record of Assessment book must complete this table. This is required for verification purposes. Assessor name Assessor signature Assessors initials Assessor number (optional)

3 UV11313 Understand the opportunities and risks in running a business The aim of this unit is to develop your knowledge and understanding of the opportunities and risks in running a business. You will understand the key steps in developing ideas for new products or services when starting a business, and learn how to assess the potential benefits associated with new products supporting the development of a business. You will learn about the risks and opportunities that can occur when starting up a business and be able to explain actions that could be taken to address potential risks. UV11313_v5

4 Level 1 Credit value 1 GLH 8 Observation(s) 0 External paper(s) 0

5 Understand the opportunities and risks in running a business Learning outcomes On completion of this unit you will: 1. Understand how to develop ideas for products or services when starting a business 2. Understand how starting a business can involve risks as well as opportunities Evidence requirements 1. Environment Assessment must be based on naturally occurring evidence or carried out in a realistic work environment. 2. Knowledge outcomes There must be evidence that you possess all the knowledge and understanding listed in the Knowledge section of this unit. In most cases this can be done by professional discussion and/or oral questioning. Other methods, such as projects, assignments and/or reflective accounts may also be used. 3. Tutor/Assessor guidance You will be guided by your tutor/assessor on how to achieve learning outcomes in this unit. All outcomes must be achieved. 4. External paper There is no external paper requirement for this unit. UV

6 Developing knowledge Achieving knowledge outcomes You will be guided by your tutor and assessor on the evidence that needs to be produced. Your knowledge and understanding will be assessed using the assessment methods listed below*: Projects Observed work Witness statements Audio-visual media Evidence of prior learning or attainment Written questions Oral questions Assignments Case studies Professional discussion When a criterion has been orally questioned and achieved, your assessor will record this evidence in written form or by other appropriate means. There is no need for you to produce additional evidence as this criterion has already been achieved. Some knowledge and understanding outcomes may require you to show that you know and understand how to do something. If you have practical evidence from your own work that meets knowledge criteria, then there is no requirement for you to be questioned again on the same topic. *This is not an exhaustive list. 4 UV11313

7 Knowledge Outcome 1 Understand how to develop ideas for products or services when starting a business You can: Portfolio reference a. Explain the key steps in developing ideas for new products or services when starting a business b. Explain how to assess the potential benefits associated with new products or services in supporting the development of a viable business start-up UV

8 Outcome 2 Understand how starting a business can involve risks as well as opportunities You can: Portfolio reference a. Assess the potential risks and opportunities a new business might face b. Explain the actions that could be taken to address the potential risks and opportunities that a new business might face 6 UV11313

9 Unit content This section provides guidance on the recommended knowledge and skills required to enable you to achieve each of the learning outcomes in this unit. Your tutor/assessor will ensure you have the opportunity to cover all of the unit content. Outcome 1: Understand how to develop ideas for products or services when starting a business The key steps in developing ideas for new products or services when starting a business: Brainstorm product ideas, evaluate ideas, seek feedback, identify any existing products, prototype, test the market, product launch, identify problems, action plan. How to assess the potential benefits associated with new products or services in supporting the development of a viable business start-up: Success of business, product/service development, turn idea into profit, change of career, independent working, access to finance, develop management skills, attract new customers/staff. Viable business start-up a potentially successful new business. Outcome 2: Understand how starting a business can involve risks as well as opportunities The potential risks and opportunities a new business might face: Risks oversaturated market, competitor s actions, the local economy, changing trends, risk product may become obsolete, product/service does not support financial obligations of the business, overhead cost until business is in profit, ineffective management, damage (fire, water, natural calamities, intentionally inflicted damages), theft, machinery breakdown, cash flow problems. Opportunities secure market niche, diversify (move to new markets), new contacts, attract specialised staff, overseas markets. The actions that could be taken to address the potential risks and opportunities that a new business might face: Risks risk management, SWOT analysis, evaluate current market, develop an effective survival strategy, access sources of business support (information, financial, manpower), correct insurance. Opportunities evaluate other products/ services, networking events. UV

10 Notes Use this area for making notes and drawing diagrams 8 UV11313