Foundations of Small Business (2021)
Foundations of Small Business
Financial Counselling e-Learning Series
Introduction
Small business owners are people. When in financial distress, small business owners often face tougher hurdles because they do not have the same protections as individual consumers. Many are susceptible to power imbalances in contracts; inequitable treatment; and the vicissitudes of life, including disasters and health issues.
More could be done in the law to address some of these issues and vulnerabilities. In the meantime, the clarification of the ASIC licensing exemption, which now explicitly covers financial counsellors assisting small businesses, is a positive step. It brings a focus to their situation and helps to expand the supports available to assist those owners in financial distress.
The Foundations of Small Business Financial Counselling e-Learning Series was developed within FCVic’s Small Business Wellbeing project funded by the Victorian Government. Because the current Diploma of Financial Counselling has limited coverage, this series was designed to provide financial counsellors with an introduction to small business fundamentals and some of the technical information necessary for working with owners in financial distress. The program has been compiled with input from Financial Counselling Australia (FCA), the Small Business Debt Helpline and the financial counsellors at EACH.
Notably, many of the skills taught in the Diploma are just as relevant to a small business client as they are to our individual clients. These include counselling skills, client engagement, person-centred practice and the overall financial counselling flow.
Foundations of Small Business Financial Counselling consists of 4 parts, some made up of a number of modules:
- Part 1: Small business fundamentals outlines the definition of a small business used by FCVic, provides an overview of small business structures and introduces learners to the work that financial counsellors can do with small business owners.
- Part 2: Credit issues provides learners with an overview of the legal framework and options to assist small businesses experiencing issues with creditors and suppliers.
- Part 3: Financial fundamentals provides a basic summary of key financial tools and financial statements and a series of interactive spreadsheets to be used as learning tools.
- Part 4: Insolvency outlines the options and process for small business companies facing insolvency.
The diagram on the right lists the parts and modules comprising the e-learning series, the time it takes to complete each module, and the number of CPD points awarded on completion of each module. The numbering does not necessarily reflect the sequence in which the modules should be completed. See Series sequence and completion order below for alternatives
Before commencing the first module, please click here to read important information about accessing the e-Learning.
Learners are welcome to simply browse or explore the e-learning series. For those wishing to undertake the e-Learning, we will be issuing a Certificate of Completion for each Module that is successfully completed. On completion of the e-Learning Series, members may contact FCVic to apply for a Certificate of Completion: Foundations of Small Business Financial Counselling e-Learning Series.
The numbering of the modules reflects one possible sequence to approaching the series. Some of you, particularly if you have had some small business experience, may wish to focus on a module(s) of particular interest. To assist you in working out which modules you wish to complete – and the order in which you wish to complete them – the following suggestions are made:
- Part 1 provides an introduction to financial counselling in a small business context, including common structures and the differences between them;
- For those who are unfamiliar with business finances and financial statements, we recommend completing Part 3: Financial Fundamentals before commencing Part 2;
- Part 2 is made up of two related sections, Part 2A and Part 2B, each comprising a number of modules. We recommend completing Part 2A before Part 2B;
- Part 4 stands on its own. Part 4 could be completed before Parts 2A, 2B and 3.
The accompanying Resource Index is a compilation of useful reference material and webinar recordings from the e-learning series. Please note that it is recommended that financial counsellors maintain and update their own resources, including links that are downloaded, as they are changing continuously.
Many of the modules contain learning activities, which take the form of scenarios. They require you to consider how you might engage with, elicit information and develop options with a small business owner. Some are also accompanied by recordings that demonstrate how a conversation between a financial counsellor and a small business client might play out. These recordings were produced because the training could not be delivered live.
If you have a colleague who is also working through the modules, you might consider role playing some of the scenarios together to practise. Of course, actual client engagements would be different – they are often an iterative process – but role plays are still helpful for increasing familiarity with client engagement ‘language’ and process.
This e-learning series is ‘foundational’ and not meant to be comprehensive. In the coming year, both FCVic and FCA will continue to develop additional collateral, as well as webinars, to complement the existing training.
The FCA is also developing a Small Business Handbook, which contains detailed technical information for ongoing reference, including chapters not covered in this e-learning series. Of particular interest are the following chapters:
You can find the Small Business Handbook on the FCA Toolkit.
If you want to learn more about the financial challenges facing many small business owners and the role that financial counsellors can play in assisting them, please read FCVic’s article ‘Why small business owners need financial counsellors.’
As small business financial counselling is an emerging area, FCVic welcomes input and ideas to build on these materials. Current proposals include creating some key factsheets for use by financial counsellors with their small business clients. Other suggestions and ideas can be sent to us at [email protected].
Before commencing the first module, please click here to read important information about accessing the e-Learning.
Any state laws referenced in the e-Learning Series are based on Victorian laws and learners should review the relevant laws in their own state to identify any possible differences in legislation.
© Copyright Financial Counselling Victoria 2020
This content has been created by FCVic for use by its members for their professional development. It is not intended for use outside the network.
While every effort has been made to ensure the information provided is accurate, the material does not constitute legal or financial advice. References are provided to relevant sections of the law including links. These are provided for information only.
Case studies, role plays, activities and responses are included for illustration only. They are intended to assist with assimilation of material and not to reflect actual case work processes or situations.
Financial Counselling Victoria acknowledges the support of the Victorian Government.