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

Grade 12 or an equivalent qualification and applicable business experience as owners and/or managers and/or consultant. It is; however, essential that prospective participants have basic calculating skills. Participants will be screened for the programme.

Learning assumed to be in place

At least one-year business experience or experience as a business advisor with basic calculating skills.

Course outcomes and assessment criteria

Course outcomes and the associated assessment criteria

Outcomes	Assessment Criteria

	After completion of this course, participants will:	Participant will be assessed on the following criteria:
(1) FM I: Financial Management Skills	Specific outcome 1 Understand the income statement and the importance thereof.	Understand revenue and expenditure. Explain and distinguish between the concepts, gross and net. Calculate the purchase price, selling price and cost price of a product. Understand and calculate the concept, costs of sales. List and understand operating expenses and compile an income statement.
	Specific outcome 2 Understand the pricing policy in a retail business.	Distinguish between the concepts, gross profit, and markup. Calculate a markup percentage and the gross profit percentage on a product. Explain and list factors which influence prices for retail businesses. Understand and apply the concept, theoretical gross profit percentage, in practice. Calculate an average gross profit percentage of a business.
	Specific outcome 3 Understand and explain how to do a viability assessment on a new or existing business.	Compile a running cost budget. Determine and calculate the break-even turnover of a business. Determine and calculate the budgeted turnover and ideal turnover of a business. Determine and calculate the cash break-even turnover of a business. Understand and compile a turnover budget. Understand and compile a purchase budget. Understand and compile a cash flow budget.
(2) IM: Introduction to Management	Specific outcome 1 Describe management and the management activities involved in running a successful business.	Explain different definitions of management. Demonstrate with a schematic presentation your understanding of the management process.
(2) IM: Introduction to Management	Specific outcome 2 Identify the basic management elements.	Identify and explain planning, organising, activation, leadership and control as a basis for management. Discuss and explain the advantages of thorough planning. Discuss and explain the requirements for thorough planning. Explain and understand the planning process. Discuss the organisational process and symptoms of poor organisation. Explain influence, authority and power in managing a business. Discuss the control proses in running a business. Explain and discuss requirements for a control system.
(3) FM 2: Financial Management Skills	Specific outcome 1 Understand the balance sheet and the importance thereof.	Demonstrate the ability to identify and evaluate the difference between assets, liabilities and owners’ equity in a business. Explain and differentiate between current assets and current liabilities. Illustrate and understand the accounting equation. Understand own capital and outside capital in a business. Understand and calculate the return on investments. Calculate the instalment of loans and understand the interest and capital redemption on loans.
	Specific outcome 2 Understand the double-entry system in accounting	Use the balance sheet equation as basis for the entry of transactions in businesses. Understand and explain an information system to compile the income statement. Understand and explain an information system to compile the balance sheet.
	Specific outcome 3 Explain financial analysis in business operations	Identify the concepts of financial analysis and explain in terms of their use in businesses. Identify users of financial analyses and explain. Understand and calculate liquidity and solvability of businesses. Be able to do the necessary adjustments to financial statements. Be able to summarise financial results of businesses. Be able to calculate the different ratios for analysis proposes. Be able to determine objectives for the different ratios. Be able to compile a flow of funds statement.
	Specific outcome 4 Determine the selling price of a business	Different valuation methods Evaluating the market potential Goodwill Buying a business: What are the pitfalls
(4) MM: Marketing Management	Specific outcome 1 Describe market segmentation and market segmentation processes	Discuss the purpose of market segmentation in terms of the division of the market into groupings with similar characteristics, needs, wants and behaviours. Explain market segmentation implications in relation to improved marketing efforts. Identify geographic, demographic, psychographic and behaviouristic segmentation bases and explain.
	Specific outcome 2 The feasibility of a business opportunity.	Explain how to identify new business opportunities. Identify and discuss sources of ideas for new products and services. Identify hazards in the choice of new business opportunities. Understand and explain technical, financial, target mark, and organisational requirements to determine the feasibility of businesses.
	Specific outcome 3 Understand the elements of marketing.	Describe and understand the elements of marketing and the influence of each on businesses. Understand and explain the influence of products, pricing, place, promotions and people in marketing. Explain market investigation. Determine a gap in the market and where to establish a specific business. Describe how to inform the customers of the business on the products they are selling. Describe how to attract customers to the business.
	Specific outcome 4 Understand customer service.	Explain how customer satisfaction can be increased. Discuss the practical application of the service motive. Explain and discuss how one can ensure customer satisfaction.
(5) PM: Personnel Management	Specific outcome 1 Be responsible for the development and maintenance of effective human resource management policies in practice	Discuss the role of human resource management. Explain the situational approach to human resource management. Discuss the importance of personnel policies. Understand and develop personnel requirements.
	Specific outcome 2 Recruitment, selection and placement procedure.	Explain and discuss the different organisational structures. Be able to write a job description. Explain and discuss resources and methods needed for recruitment and selection.
	Specific outcome 3 Conduct selection interviews and make employment decisions.	Develop evaluation tools according to organisations’ policies and procedures. Explain the interviewing process and different types of interviews. Explain how to conduct an interview. Discuss a contract with the successful candidate and how to notify unsuccessful candidates.
	Specific outcome 4 Explain the importance of inducting new staff into organisations.	List and explain the advantages of training. Define the aspects of training new staff. Explain and apply the induction training process. Explain and apply the formal training process.
	Specific outcome 5 Understand the motivation of personnel.	Discuss the theory of motivation. Define and explain the different motivational models.
	Specific outcome 6 Understand the control of personnel.	Explain the reasons for not delegating and how managers should delegate. Identify and explain the functions of the performance appraisal process. List and explain the limitations of performance appraisal. Discuss performance appraisal techniques.
(6) ICA: Introduction to cost Accounting	Specific outcome 1 Cost management systems are designed on the basis of organisational recourses.	Explain and understand the cost classifications. Understand the flow of cost in small industries. Explain the quotation process, the essentials of job cards and requisitions.
	Specific outcome 2 Understand the calculations related to determining the viability of manufacturers.	Know the difference between variable and fixed costs. Explain and calculate the break-even point of small industrialists. Explain and calculate return on investments. Explain and calculate the budgeted turnover for manufacturers.
	Specific outcome 3 Understand pricing methods in determining the price of products.	Explain and calculate the material of products. Explain and calculate the productive hours available. Explain and calculate the labour rate, overhead rate and profit rate. Explain and calculate the cost price and selling price of products. Understand variance analysis regarding labour, material and overheads.
	Specific outcome 4 Understand the management and costing in a retail business.	Marketing principles for a retail business Control in a retail business Layout of a retail business
	Specific outcome 5 Understand the management and costing of a business rendering a service.	Pricing of a business rendering a service Marketing of a service Control in a business rendering a service. Layout of a retail business
(7) CR: Consultation Report MC: Methodology of Consultation and Small Business Consultants	Specific outcome 1 Understand the meaning of consultation services.	Name and discuss the four major advantages of consultation services for small businesses. Discuss the national objectives for consultation services.
	Specific outcome 2 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 consultation. Name and discuss the aids used during consultation. Name and discuss the different kinds of consultation services. Discuss the duration of consultation services. Explain and discuss consultation reports.
	Specific outcome 3 Understand the concept, consultant.	Define the concept, consulting, and the roles of consultants. Explain and discuss the concepts, advisors, consultants and counselling. Discuss the qualities, qualifications, personal characteristics and experience of consultants. Discuss the training of consultants. Discuss the rules of conduct of consultants. Discuss communication as an essential part of the skills of consultants.
(8) PRM: Project Management	Specific outcome 1 The consultation as a project.	Define projects and project management. Differentiate between projects and programmes. Identify and explain the main purposes of projects. Comprehensively explain the project life cycle. Identify and analyse the steps in project management execution.
	Specific outcome 2 Demonstrate the importance of small businesses in the economy.	Define small businesses and discuss why people operate small businesses. Demonstrate the understanding of shortcomings in operating small businesses.
	Specific outcome 3 Specify small business problems.	Understand and discuss the unique external and internal problems and failures of running small businesses.
	Specific outcome 4 The business plan.	Explain why it is necessary to have a business plan? Discuss the uses of a business plan List and discuss the six steps in preparing a business plan List and discuss the basic outline of a business plan

Method of assessment

Mentors were instructed as follows:
•   You as the participant is obliged to make contact with your Mentor (after receiving the name and contact particulars from the SBAB’s Administration Department;
•   Mentors could arrange for Zoom Meetings or you could contact them via telephone on specified times and dates (specified by the mentor);
•   Mentors are not encouraged to make contact with your SMME;
•   Mentors must sign off on your consultation report – whether you pass or fail; and
•   Mentors should also evaluate you on a specific format. This evaluation is part of your training and will be made available to you with your final mark and certificate.
•    There will be two types of certificates:
      o   An attendance certificate to all learners that did not pass the course; and
      o   A certificate indicating that the learner has passed the Course in Small Business Consultancy.
•   The Portfolio of Evidence that will be recorded at the SBAB for each participant will be:
      o   The Consultation Report;
      o   The Evaluation by the Mentor; and
      o   The Mark sheets of the individual Study Units.
•   Participants can re-do any Study Unit as many times as they wish on the condition that the whole course is completed within six months.

Assessment

At the end of Study Units 1-8 there will be a self-assessment exercise.Passing each individual self-assessment will grant you permission to move on to the Study Unit. Should you not achieve the 50% passing mark, you will have to re-do the exercise. After passing Study Unit 8, you will be allocated a Mentor. All mentors are experienced SMME consultants.In Study unit 9 you will have to do a practical consultation at an SMME of your own choice and using all the knowledge gained in the previous Study Units. Your mentor will assist you with the compilation of your Consultancy Report.

Additional information

Programme number

H38 100 1

Mode of delivery

Mixed

Target group

Prospective and existing business consultants who work for institutions that have a consulting division for the medium and small businesses sector. Typically the banking sector, SEDA, LEA and other development agencies in South Africa and the SADC countries.

Duration

6 months