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Short Learning Programme
in
Small Business Consulting
The Small Business Advisory Bureau offers business advice to prospective and existing business people since 1970. The SBAB developed a training programme to train business advisors in an academically based, yet practical training programme to become professional business advisors to help other business people in starting a new business or to help existing business people with their unique problems that they experience in their own business. The programme will be presented in South Africa and in the SADC countries. The focus will be on institutions that have a consulting division for the medium and small businesses sector. Typically the banking sector, SEDA, LEA and other development agencies are the target market for the programme.

Purpose of the course:

Students will learn to understand the income statement and balance sheet as well as the pricing policy in a retail business. They should be able to do a viability assessment on a new or existing business. Demonstrate the importance of small businesses in the economy. Students should be able to describe management and the management activities involved in running a successful business, including the basic management elements. Explain financial analysis in business operations. Describe market segmentation and its processes. The ability to determine the feasibility of a business opportunity. Understand the elements of marketing and customer service. Be responsible for the development and maintenance of effective human resource management policies in practice, including recruitment, selection and placement procedures. Conduct selection interviews, make employment decisions, explain the importance of inducting new staff into organisations, motivate and control personnel. Understand the calculations related in determining the viability of manufacturers and pricing methods in determining the price of products. Understand the meaning and the different methods of consultation services as well as the concept consultant and the communication process as part of the skills of consultants. Understand what a project is and what the meaning of project management, the appropriateness of various organisational structures is.

Admission requirements:

Admission requirements: 
At least three years’ management experience or experience as a business advisor and a fair level of knowledge and skills in the field of general management, financial management, marketing management and human relations.
Learning assumed to be in place: 
Programme in Business Management and Grade 12 or equivalent three years’ practical business experience as the owner/manager or consultant.

Course outcomes and assessment criteria :

Course outcomes and the associated assessment criteria: 

Study Unit

Outcomes

Assessment Criteria

 

After completion of this course, participants will:

Participant will be assessed on the following criteria:

(1)  Interpretation of financial statements

Specific outcome 1

The participant should demonstrate detailed knowledge and understanding to deal meaningfully with the nature of accounting

  • Understand the different categories of accounting.
  • Demonstrate an insight into the accounting process and accounting systems in a business.
  • Identification of transactions, occurrences and economic activities.
  • Explain the nature of principles and policy matters regarding financial statements.

Specific outcome 2

The participant should demonstrate detailed knowledge and understanding to deal meaningfully with financial statements of a business.

  • Understand the income statement and how to use it for interpretation purposes.
  • Understand the balance sheet and how to use it for interpretation purposes.

Specific outcome 3

The participant should demonstrate detailed knowledge and understanding to deal meaningfully with the analysis and interpretation of financial results

  • Discuss additional information required and adjustments in the analysis of financial results
  • Calculation and explanation of different financial ratios.
  • Calculate and explain activity ratios.
  • Calculate and explain the critical growth rate of a business.
  • Calculate and explain the efficiency ratios
  • Calculate and explain the profitability ratios
  • Calculate and explain the financing rations
  • Be able to analyse the financial statements of a company.
  •  

Specific outcome 4

The participant should demonstrate detailed knowledge and understanding to understand and explain the Du Pont model

 

  • Calculate and discuss asset turnover.
  • Calculate and discuss the gearing and other leverage ratios for a business.
  • Compile a cashflow forecast and understand the cashflow statement
  • Calculate and discuss the operating or business cycle for a business.
  • Calculate and explain survival and growth for a business

 

2)  Cost accounting

Specific outcome 1

The participant should demonstrate detailed knowledge and understanding to demonstrate an insight into management systems.

.

  • Explain and understand the cost classifications; material, labour and overheads.
  • Explain and understand the cost classifications; direct- and indirect material and labour.
  • Understand the flow of cost in a small industry.

Specific outcome 2

The participant should demonstrate detailed knowledge and understanding in the calculations related to determining the viability of a business

.

  • Know the difference between variable and fixed costs.
  • Explain and calculate the break-even point for a service operator or a manufacturer.
  • Explain and calculate the return on investment.
  • Explain and calculate the budgeted turnover for a service operator or a manufacturer. Understand variance analysis regarding labour, material and overheads.

Specific outcome 3

Understand costing behaviour patterns and cost-volume-profit relationships.

.

  • Explain and calculate the material of a product;
  • Explain and calculate the productive hours available.
  • Explain and calculate the labour rate, overhead rate and a profit rate.
  • Explain and calculate the cost price and selling price of a product.

Specific outcome 4

The participant should demonstrate detailed knowledge and understanding in interpretation of the financial statements for a manufacturer.

  • Explain and calculate the different ratios regarding material to production costs and to turnover
  • Explain and calculate direct overheads to production costs and turnover.
  • Explain and calculate indirect overheads to sales.
  • Explain and calculate profitability ratios.  
  •  

(3) Tender procedures

Specific outcome 1

The participant should demonstrate detailed knowledge and understanding to develop and explain tender performance requirements

  • Discuss and understand the registration requirements with the client
  • Understand statutory requirements to comply with
  • Understand the registration with Government Authorities

Specific outcome 2

Develop and explain tender registration requirements

  • Understand tender documentation
  • Understand general conditions of the tender
  • Understand and discuss the conditions of a contract
  • Understand the bill of quantities
  • Understand the forms of surety required

Specific outcome 3

The participant should demonstrate detailed knowledge and understanding to develop and explain factors that will affect my decision to tender

  • Explain and understand the preference certificate.
  • Explain factors that will affect your decision to tender.
  • Understand the general conditions and procedures for tendering.
  • Understand the general directives regarding tenders.
  • Understand the administration of contracts.

(4) Buying and selling a business

Specific outcome 1

The participant should demonstrate detailed knowledge and understanding to understand the factors to consider

 in determining the value of a small business

  • Demonstrate an insight into the buying/selling correlation intensity.
  • Explain some factors that the buyer/consultant should consider before buying a business.
  • Methods to investigate why the seller wishes to sell the business.

Specific outcome 2

The participant should demonstrate detailed knowledge and understanding to discuss the evaluations that must be done before buying a business.

  • Demonstrate the evaluation of financial results of the past
  • Demonstrate the evaluation of assets in a business
  • Demonstrate the evaluation of the market potential of the business
  • Discuss the experience of the buyer

Specific outcome 3

The participant should demonstrate detailed knowledge and understanding to understand the basic methods of determining the value of a business.

  • Discuss goodwill     
  • Discuss and calculate the value of a business by using the method of buying super profits.
  • Discuss and calculate the value of a business by using the method of capitalisation of future profits.
  • Determine the market value of the business.

Specific outcome 4

The participant should demonstrate detailed knowledge and understanding to understand some principles of financing.

  • Discuss some factors affecting the financing of a business.      
  • Discuss some sources of capital and the utilisation of the capital.
  • Discuss and calculate simple interest.        
  • Discuss and calculate compound interest.
  • Discuss and calculate some investment options.

(5) PRM: Project Management

Specific outcome 1

The participant should demonstrate detailed knowledge and understanding to What is a project and what is the meaning of project management.

  • Define projects and project management
  • Differentiate between projects and programmes
  • Identify and explain the main purposes of projects
  • Comprehensively explain the project lifecycle
  • Identify and analyse the steps in project management execution

Specific outcome 2

The participant should demonstrate detailed knowledge and understanding to Discuss and explain the appropriateness of various organisational structures.

  • Describe the organisational and structural integration of projects.
  • Contextualise project management within the organisation.
  • List and explain the five knowledge areas of organisations.

Specific outcome 3

The participant should demonstrate detailed knowledge and understanding to allocate resources appropriately for specific contexts.

  • Evaluate the importance of strategic alignment and systems integration.
  • Analyse the managing by projects approach.
  • Evaluate the role and functions of a project support office.
  • Explain the processes necessary for managing multiple projects.
  • List and explain the various elements of successful multiple project management.

 

Specific outcome 4

The participant should demonstrate detailed knowledge and understanding to Project management in South Africa

  • Provide an overview of the South African context of project management

(7) CR: Consultation Report

MC: Methodology of Consultation and Small Business Consultants

Specific outcome 1

The participant should demonstrate detailed knowledge and understanding to understand the meaning of a consultation service.

  • Name and discuss the four major advantages of a consultation service for a small business.
  • Discuss the national objectives for consultation services.

Specific outcome 2

The participant should demonstrate detailed knowledge and understanding to Discuss the different methods of consultation services

  • Discuss the objectives, operation and limitations of different consultation methods.
  • Name and discuss the stages in carrying out the consultation.
  • Name and discuss the aids used during the consultation.
  • Name and discuss the different kinds of consultation services.
  • Discuss the duration of the consultation service.
  • Explain and discuss the consultation report.

Specific outcome 3

The participant should demonstrate detailed knowledge and understanding to Understand the concept: Consultant

  • Define the concept ‘consulting’ and the roles of the consultant.
  • Explain and discuss the concept advisor, consultant and counselling.
  • Discuss the qualities, qualifications, personal characteristics and experience of a consultant.
  • Discuss the training of consultants.
  • Discuss the rules of conduct of a consultant

CS: Communication Skills

Specific outcome 1

The participant should demonstrate detailed knowledge and understanding to discuss communication as an essential part of the consultant’s skills.

  • Define the communication process by referring to the communication elements.
  • Name and discuss the different communication models.
  • Name and discuss the classic communication model.
  • Name and discuss the information theory communication model.

Specific outcome 2

The participant should demonstrate detailed knowledge and understanding in the communication process.

  • Discuss why the communication process is important to a consultant.
  • Discuss the factors determining the success or failure of persuasive communication.
  • Discuss the verbal and non-verbal communication process.

BP: Business plan writing:

Specific outcome 1

The participant should demonstrate detailed knowledge and understanding to prepare to start a new business venture

  • Discuss and describe the importance of a business plan.
  • Determine strengths and weaknesses of a proposed business idea.
  • Explain technical viability, market viability, and organisational abilities, and determine your own financial situation

Specific outcome 2

The participant should demonstrate detailed knowledge and understanding in the steps in preparing a business and basic requirements for writing a business plan.

 

  • Discuss the title page, table of contents and the executive summary in a business plan.
  • Determine a mission and vision statement for a business.
  • Explain and discuss products and type of business.
  • Explain and discuss the marketing plan.
  • Explain and discuss the financial plan.

Specific outcome 3

The participant should demonstrate detailed knowledge and understanding to How can one ensure success with a business plan.

  • Explain what must be contained in a business plan and what not.
  • Explain how one should use a business plan. 
  • Write a business plan for a new business venture.

 

 

 

Assessment: 
80% attendance of compulsory study schools because a huge amount of the theory is backed up with practical examples during the contact training. Assessments will be with case studies during the study school, one assignment to be completed after the study school and final examination on each of the subjects. To pass the programme, participants have to obtain a final mark of 50% or more. The weight of the assignment mark is 40% and the examination 60% in the determination of the final mark. A sub-minimum of 40% must be obtained in the examination of each subject to pass that specific subject. If participants fail and the assignment mark was more than 40% they can write a re-exam in that specific subject but the final mark will not exceed 50%. To obtain the programme in business management cum laude, participants have to complete the programme within one academic year and have to obtain an average of at least 75% for all six subjects.
Method of assessment: 
The assignment and final examination will test participants on the assessment criteria of each subject to determine if participants understand the outcomes of each subject and if participants can apply the outcomes in practice.

Additional information

H38 100 1
Mode of delivery: 
Contact
Target group: 
Prospective and existing business managers, supervisors and consultants who work for institutions that have a consulting division for the medium and small businesses sector.
Contact us
Name: 
Me Janine Erasmus
Telephone number: 
018 285 2895