Chapter Name: Develop and manage the small retail business budget
Description:This chapter focuses on creating and managing a budget for a small retail business, including forecasting and tracking expenses and income.
Purpuse:To provide businesses with the tools to manage their finances and ensure financial stability.
Rational:A well-developed budget is essential for managing cash flow, controlling costs, and making informed financial decisions that contribute to business success.
Chapter Assessment
Scope of Practical Skill
Key Requirement 1: Identify and list the small retail business expense items
Identify all operational costs of running a small retail business.
Key Requirement 2: Assign costs to each expense item
Allocate actual or estimated amounts to each listed business expense.
Key Requirement 3: Use the appropriate budget template
Select a suitable budgeting format for small retail businesses.
Key Requirement 4: Populate the template accordingly
Fill in the budget accurately using provided or researched figures.
Key Requirement 5: Draw the budget with projections
Create a projected budget including income and expenses for a given period.
Key Requirement 6: Monitor and control the business income and expenditure in accordance with the budget
Track actual income/expenses and compare them to the projected budget.
Key Requirement 7: Identify variances and implement corrective action if necessary
Spot differences between actual and budgeted amounts and act to correct issues.
Assessment Questions
Assessment 1 : The small retail business expense items are identified and listed
Learner must identify all operational costs.
Assessment 2 : Costs are assigned to each expense item
Learner must allocate realistic cost values to expenses.
Assessment 3 : The appropriate budget template is used
Learner must choose or be provided a suitable budgeting tool.
Assessment 4 : The template is populated accordingly
Learner must complete the budget template with relevant data.
Assessment 5 : The budget is drawn with projections
Learner creates a financial plan including forecasted income and expenses.
Assessment 6 : The business income and expenditure is monitored and controlled in accordance with the budget
Learner must track financial activity against planned budget.
Assessment 7 : Variances are identified and corrective action is implemented, if necessary
Learner must analyze budget deviations and suggest actions.