How to Launch an RTO

Wed, 5/19 · 12:19 PM1:29:57



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Angela (100%) 

Angela Connell
So, you’ve decided to launch an RTO. And you’re here because you want to know how to launch an RTO. Hi, my name is Angela Connell, I am the CEO and founder of a varsity coaching and consulting, I have been helping training organizations all over Australia to get compliant and stay compliant. Since 2009. We have a big team at vivocity, we’ve been working within the training industry for quite some time, we have a team of experts who are compliance auditors, and also working as consultants around Australia. So let’s get into it, you’ve decided you want to become an RTO. So I’m assuming you want to know how and what are the requirements and what you need to do in order to set up as an RTO. So we’re going to be going through these today. But before we begin, I need to get your commitment, I would like you to pay full attention to what we’re going to go through today, grab a pen and paper and take many notes, because there’s going to be lots of things that you’re going to learn that we’re going to cover today. So I really would like you to be on the ball and paying attention and not cooking dinner or doing something on the side, it’d be good if you could be paying attention. My goal is to share this information with you about how to set up an RTO. And what the whole process is of launching an RTO based on my over 20 years of experience in the training industry, including from being an owner and operator of my own artios. As well as being a trainer assess our RTO manager, a CEO, a training coordinator, I’ve done it pretty much at all when it comes to working within an RTO. So I’ll be covering a lot of information based on my years of experience in the training industry. My promise to us today I’ll be sharing these experiences of over 20 years, where I’ve been working in the training industry, what I learned what to do, and what not to do, so that you can minimize the risk of non compliance with your decision about whether to purchase an RTO or set up your own RTO. So we’ll be going through both of those today. So stick to the end, because at the end, I’m giving away a free audit checklist that you can use for preparing for audit when you go to ask her, but also identifying the types of documents that you’ll need to have in place in order to be ready for an aspir audit. So hang around till the end of this video, and you’ll get access to that free form. So what is an RTO a registered training organisation can deliver nationally recognised qualifications around Australia. They are not only recognized in Australia, they’re also recognized overseas, we have a lot of clients who are delivering around the world. So they’re in Dubai, India, Philippines, Papa New Guinea, Thailand, Vietnam, New Zealand, we have a range of different areas where our clients are delivering. Now you don’t need to be a cry cost provider, which is a provider that can deliver international students to international students training to international students. It is as long as you’re an RTO. You can deliver not only in Australia, but also overseas. And this includes online, what you can be doing that as an RTO, you can issue certificates that are nationally recognized. What that means is if you’re a non accredited training organization, you may issue a certificate. But it’s not from a training package. And it’s not to a national standard. So it’s very different when you’re working within an RTO. And you have that registration because you’re able to issue nationally recognised qualifications, which is one of the reasons why you may be thinking about setting up as an RTO. You might be currently delivering non accredited training, and you’re trying to decide, well, do I want to become an RTO? Is it worth my while to become an RTO as an RTO, you also are eligible for accessing government funding. So that means when you become an RTO, you can apply for government funding in different states to be able to deliver training that is covered by government funding, which is a big interest in with a lot of people who own training organizations. It also means that you’re meeting industry requirements. So you’re delivering training products that are written for a national standard, but you’re including industry to identify how can you meet their needs when you’re delivering your training?
Angela Connell
crackers. So Chromecast is in international students, it’s where you are delivering training and assessment to international students coming into the Australia. The difference between delivering training overseas to students who are overseas compared to in Australia is you’re dealing with student visa requirements, Border Protection patrols, and also protecting the interest of Australia. So it’s the policies and procedures that you have in place are going to be very much around protecting Australia. So it means you can deliver training to international students and help them getting into Australia on student visas. And you’re very much responsible as a cost provider to be monitoring their academic and attendance performance, whilst they’re in Australia and making sure that they are completing the training as per their aroma. With audio registration, you can also say you can do RTR and cry cause together, you can also deliver nationally recognised qualifications, which is highly sought after by international students who come to Australia. Additionally, you could offer elicos courses as well, which is English language courses. So who were the regulatory body, the regulatory body are the people who were responsible for regulating the standards. And this is called the Australian skills quality authority, also known as ASCO. So ASCO are responsible for regulating the standards. They like the police for the training industry. So they’re not responsible for the standards, they don’t write the standards, they don’t write the legislation, they’re responsible for regulating the standards, and making sure that anybody who becomes a registered training organisation or CRI cost provider are meeting the requirements of the legislation. So that’s their key role is to audit you and identify whether you are complying with the standards as per what set out by the government. The legislation is actually
Angela Connell
approved by the government. So it’s got nothing to do with our squat is a common myth that a lot of people think that ASCO, right the standards, but they’ve got nothing to do with the standards, other than regulating the standards. So they have very strict requirements when you’re registering as an RTO. And these requirements are very much so when you submit an initial registration application. There is also additional requirements around if you buy an RTO. And we’ll be going into that further today. As we’re responsible for auditing your RTO to identify whether you’re a fit and proper person to be able to deliver and assess quality education. And whether you have all the resources trainers and assessors, training rooms, assessment tools, training materials, you have everything in place that meets the requirements of the standards to maintain that quality level. an authorized auditor from ASCO will come out to your side, or they may conduct the audit online, depending on their circumstances and what training products you’re putting on your scope of registration. To find out more about ASCO go to ask va.gov.au. So what’s the process for applying for registration with Ascot? So there’s quite a lot of information about what you need to do. Now if you’ve gone to the ASCO website already, you would have identified that there’s actually quite a lot involved. It’s quite extensive. And one of the main things with asker is they want to make sure the only quality our operators are delivering training and assessment. So what our school do is they’re determining your capacity to be able to deliver that training and assessment and ensure that you’re ready to commence training straightaway. So you need to have everything in place. When you submit your application to ask why you can’t submit some of the documents, it was in the past, you could do this, you can submit some of the documents. And then you submit the remaining documents when you go to order. You have to submit everything with your application. So it’s quite a bit of a process. When you’re submitting your application. Once you’ve submitted your application, you cannot change your location, your trainers or your training product. So there’s quite a few restrictions around what you can and cannot do once you’ve submitted that application. So when you’re applying for initial registration, you’re also required to undergo and demonstrate your financial viability that you’re able to pay and forecast into the future, what is going to be the growth of your RTO and then what you’re going to have in place in order to manage that growth. So your financial viability includes forecasting for the next three years. It also includes what that you’ve got to demonstrate that you have the funds to be able to manage that into the future and this is forecasted With the income that would be coming in as well, you’re also required for an initial registration as well as when you buy an RTO to undergo a self assessment. So this is to demonstrate your capacity to meet the requirements of the standards. And to be able to own and operate an RTO will go in further into the self assessment later on in this training. So what is RTO? registration RTO registration is complying with the standards for artios. So it’s known as the status of a registered training organisation, you might hear it called standards, or the standards for artios. So there’s a range of different terms that we will use in the training industry, you’ll also need to be able to demonstrate how you would meet the requirements of the Australian Qualifications Framework. The Australian Qualifications Framework sets out the framework for the certificate levels that we have in place, and what you need to have in place for your delivery and assessment to meet those requirements. Then there are the fit and proper person requirements. So the fit and proper person requirements is where you need to demonstrate that you are a fit and proper person and every director and shareholder on your company is a fit and proper person to be able to run an operation RTO one of the requirements around fit and proper person is if you
Angela Connell
have owned and operated an RTO. Previously, you need to be out you need to tick a box that says that you have done that previously. And now we’ll want to understand why are you setting up another audio if you currently own one, or if you have sold one and now setting up another one. Now another area that they’ve cracked down on with fit and proper person is they also want to know has you have you had a relative that could be mom, dad, brother sister, it could also be de facto relationships of someone who also owns and operates an RTO now or in the past. Now the reason why they do this is because there’s been operators out there who have set up an RTO being non compliant, had their registration cancelled, and then go along and open up another RTO in one of their family members names. So now they’ve cracked down on that. And they want to make sure that you’re not a dodgy operator who’s trying to set up another RTO under another name. So there are so many requirements around the fit and proper person when you go to apply for your initial registration. This is also a requirement. And all of these are also a requirement if you buy an RTO. There’s also the financial viability risk assessment which I went through before, which includes forecasting and identifying that you are financially viable to be able to own and operate an RTO. There are also data provisioning requirements. So the data provisioning is ensuring that you have an avetmiss compliant database in place that collects sufficient evidence against the avetmiss data that’s required to be collected as part of your registration process. And this database needs to also be able to submit reporting to the government on your avetmiss data. There’s also a few other things that you need to be able to submit reports on from your database. So it’s a very important part of ensuring that you’re complying with the legislation is having this avetmiss compliant database. So what cross registration, cross registration is where you are registering to be able to bring international students into Australia. So as I stated earlier, basically, these are protection, so student visas and students coming into Australia, and how are we making sure that we’re protecting those students while they’re in Australia. So this comes under the SOS Act, which is education services for overseas students. And then you’ll also need the national code practice of providers of education and training to overseas students, also known as the National code. And this is where you need to have a set of policies and procedures written against this legislation to ensure that you are compliant, and that you will be able to provide quality education. There are a range of forms and documents that you need to complete when you submit your registration. These include the fit and proper person form as we had discussed before our CEO declaration of compliance. So this is a form that states that as the CEO so someone within your organization should be nominated as the CEO is normally it may be just one director, so that will be the CEO, or it could be you have a range of directors and one of the other directors is the CEO CEO declares that they are responsible for the compliance within the RTO. And that means that they are responsible for ensuring that the policies and procedures are in place. And that the RTO is meeting the requirements of the standards at any given time. So that is a very important document that you’re signing to say that you will operate ethically within your RTO. Then there’s the financial viability cap, which needs to be submitted as part of your registration process. So when you submit for your registration, you need to be able to demonstrate financial viability as an RTO. And you also need to complete that self assessment form to identify that you have everything in place in order to conduct quality education. So we’ll be going through the self assessment form. Later on in this training.
Angela Connell
There’s a range of other documentation that you need to submit with your application when you submit it to ask her. This includes a strategic business plan. The strategic business plan, is what you work out with your financial viability, to identify what your three year plan, what do you plan with your growth of your organization? What resources are you able to access? And how are you going to deliver that training and assessment throughout the in the next three years, and it’s very important for the growth as well. Now, if you’re an enterprise RTO, and you decide that you want to set up as an RTO, you need to have a separate business plan that is written around your RTO and what you want within your RTO, you still can have bring in information about the entity that of the company have the enterprise RTO into that business plan. The business plan, though, however, needs to be very specific around your training and your forecasted income, and how you plan to deliver and assess that training. As stated earlier, you’ll need to do your financial viability assessment. And part of that is projected profit and loss. So there should be spreadsheets in place, identifying budgets, and what your plan is for the future. You’ll also need to have intensive training and assessment strategies that includes all of the requirements of how you’re going to conduct the training and assessment for each training product on your scope of registration. This training and assessment strategy is the core of your training and your application when you submit it to ask why it is one of the most important documents within your RTO. It’s so important that we have an eight week course on just how to write a training and assessment strategy because there is so much involved with writing and training and assessment strategy. And it’s the number one non compliance when you go to an article audit. So it’s really, really crucial for your organization. Then, of course, you’ve got to submit your training and assessment tools for each training product on your scope of registration that you wish to apply for as part of that process. And this includes what how you’re going to deliver the training, or delivery plan session plans is also the training materials, resources and equipment that you’re going to use for the delivery. And then what you need to have in place in order to assess, and you’ve got to have all of this in place. When you submit your application. It’s not something you can purchase later on, you’ve got to be able to demonstrate that with your application when you submit it. You also need to have a staff matrix in place for each trainer assessor, which demonstrates their skills and knowledge against the units or competencies that they will be delivering. This could be direct equivalent units that they may already hold with complemented with industry experience and knowledge. Or it could be that you need to map because they may not hold the direct equivalent units, you need to map all of their skills and knowledge against each unit of competency. You’ll also need to have a full set of policies and procedures that are written against the standards for artios. That includes the whole process of how you’re going to maintain, manage and maintain that quality delivery of training and assessment. You also need to submit marketing materials that includes all the training products that you’re going to be offering as part of your RTO. So whatever you put on your scope of registration for initial registration, you need to have marketing material that supports that. So that’s course flyers, your website and any other documentation that you’ll be providing to those students to help them determine whether you’re the suitable RTO for them and the training is suitable for them. So it’s really important that you get that right. And it can often be a non compliance as well. There are additional requirements that you need to submit, if you decide that you would like to go with criar costs. This includes a nine B approval, a nine B approval is your council approves the building for a capacity to be able to deliver education services within that premises, and it is a highly sought after requirement. In Victoria, all artios must also comply with this as well as Krakow’s providers. So what that means is you’ve got to provide a building plan. And that building plan of the floor plan includes each training room, how those rooms are set out with your tables and chairs and where your trainers are going to see where your counseling and support services are going to be as well and administration staff, and that the council would determine what the capacity of that building is, then ASCO will use that, coupled with your crisis timetable, which is the next section, we’re going to go through the crisis timetable lists every single training product that you wish to deliver over a period of time, what your capacity is, of each training room with your tables and chairs. And then they’ll determine the capacity of what you’ll be approved for based on your building plan, your class timetable, and how long you’ve been in the industry, how many training products, you’ve got a new scope. So it’s really, really important that you have a really good crackcast timetable, you’ll also need to have in place at an international student perspectives. This international student perspectives outlines the roles and responsibilities of the students what they need to know when living in Australia, what are their rights as a student within Australia, it’s understanding, you know, what shopping is like in Australia, how much things cost, living expenses, rent, it could be food, all different things to make sure that they understand what they’re coming into when they come into Australia, you’ll also need to have a letter of offer, which includes in the written agreement between the student and the RTO, when they come into your organization, and they sign this written agreement, understanding what all the fees are, what the requirements of the training are, and how much what the how long, the course will be going for as well. You need to also be able to demonstrate that you have a student support officer, and that the students support officer how they’re going to support the students, whilst they’re within your organization. If you decide to put elicos on your scope, you’ll also need to have an elicos academic manager in place who normally would have key soul qualifications or something similar to that, to be able to assist those students who come from non English speaking background, who will be learning English whilst they’re in Australia. So you may be asking, should I become an RTO? or expand into cry cos this might be things that you’re considering right now. So this will be determined by your current circumstances and where you are right now. So for example, you might be currently looking at your delivering non accredited training right now. And you might be deciding Should I become an RTO? and deliver accredited training? And why should I do that? So one of the things that you need to consider is if you are delivering non accredited training right now, is your industry requiring a qualification? So there are different reasons why you become an RTO. So for example, if you wanted to deliver training in individual support or aged care, it is a requirement of the industry that people who want to enter into roles within that industry, they must hold a cert three individual support as a minimum. So that would be a good reason why you would put become an RTO. But you might be delivering training in an industry where they don’t care whether you have a qualification or their staff members have a qualification, as long as they’ve done the training. So it may not be a requirement that you need to have nationally recognised qualifications and become an RTO because there is so much involved with becoming an RTO. But the advantages are that you get access to government funding as I stated earlier, there’s also some industries there are a lot of industries where they require their staff members to have a nationally recognised qualification because it reduces their insurance risks. So that is another reason why you would become an RTO. So are you in business right now, you don’t have to be it could be that you have another business, it might be a consulting business. And now you want to be able to deliver training and assessment as well. So that is a good reason why you may set up as an RTO. Because you want to complement the current services that you offer. Do you need a training background? No, you don’t. You hire trainers and assessors who know their stuff, and they know how to deliver training and assessment. Most RTO owners are entrepreneurs, they’re not necessarily trainers and assessors. I had I was a trainer and assessor when I owned my own RTO only deliver business, but I had 35 qualifications on my scope. And they range from aged care, disability, Community Services, hairdressing, boot beauty, tourism, hospitality, hospitality, event management, business, childcare, we had so many qualifications on the scope of registration. And I could not deliver training in all of those areas. I knew business. And that was my background. But that was it. So you don’t have to necessarily have a training background. But you do need to have a team that are on board that actually know what they’re doing. Are you currently delivering non accredited so I talked about that. And you might be wanting to become an RTO does your industry require I went through that as well. It may be that you now want to access to an international market, and bring international students into Australia. So that’s another good reason to become an RTO. We often get inquiries from people who come in, who wants to know about buying an RTO. So they are inquiring about that, and want to know what the process is, and whether we sell artios as well. There are lots and lots of Rhys of buying an RTO. And we’re going to go through some of those now. So when it comes to ask what they consider a change of ownership, which is when you buy an RTO is high risk. And what they determine is that, okay, if you want to buy an RTO, you need to demonstrate to us that you’re a fit and proper person that you’re financially viable, that you want to deliver quality education, that you have all of the resources in place. So there’s a lot of requirements around when you buy an RTO. So it’s quite risky if you buy an RTO, and they don’t have all of those things in place. Because as the new CEO, and the directors of that RTO, you become legally responsible, in accordance with ask requirements when you take over that RTO. So it may be that you say you can’t transfer an RTO registration to another company that you can buy shares in an RTO. And then you take over that RTO as well refers to this event as a change of ownership. So what does change of ownership mean? Change of ownership is where you changes to company shareholding and 50% or more are considered significant. And that would mean that they would want to consider all of those partners and directors within that company and that they meet the requirements of the standard. So ASCO considers a change of ownership to be a significant risk to the quality of education that we offer in Australia. And significant risk as to do you understand the requirements of the standards and the regulations that you need to comply with. So the change involves the same process as initial registration. So it’s pretty much the same. If you buy an RTO, it’s just the same as doing an initial registration, the process is just the same as was considers change of ownership as the purchase or avoiding the scrutiny applied to initial registration. And that has happened for many, many years in the past, where people just thought well of a buyer and RTO I avoid that whole process of initial registration. It might be quicker for me to do it that way. But what asked were found there was so many non compliances of people who bought an RTO because they really didn’t understand their responsibilities as the owner of that RTO. So ASCO scrutiny goes into quite significant in depth requirements. So the scrutiny is when notified of those significant changes of ownership. So it might be 50% or 100%. Ownership has changed and what they consider a change of ownership is 15% or more of the shares, and there’s someone else who comes in there, you will be required to undertake additional scrutiny, which includes a self assessment. So this scrutiny is applied to ensure providers are appropriately prepared to be able to deliver quality education and training. So they have the assessment tools, they have the trainers and assessors that have all of the equipment required, they have the training rooms, they have everything in place to be able to continue to deliver that training, and continue to be resourced. With that, all of that quality equipment. And do you understand what the requirements are to comply with the regulatory requirements, including the requirements around fit and proper person requirements. So the process for change of ownership, both the current CEO and the future CEO, are required to notify our squat of change of ownership within 90 days of that change of ownership. So that’s the asik company records that have changed to the new directors within that 90 day period, you need to notify ASCO, and in that time, you need to make sure all of the documentation is in place for that submission of a self assessment in during that 90 day period. So you’ve got to actually submit that with your change of ownership. This includes completion of a fit and proper person form for changes in 15% of the shares or more. And the new owner will be subjected to an self assessment and a compliance audit, where ASCO will come out and conduct an audit. So for 50% or more of change of ownership within a 12 month within that first 12 months of period, you’ll be required to complete a financial viability risk assessment tool. So that will need to be submitted with your self assessment, you need to complete Section A of the self assessment tool for change of ownership. This must include the required supporting evidence, so policies, procedures, documentation, training and assessment, track strategies, training, tools, assessment, tools, delivery and assessment. But there’s a whole heap of documents a lot, a lot of documents you need to submit, there are two versions of this tool, a standard version and a version for our cost providers. So if you wish to also purchase a lacrosse organization as well. Now, if 100% of ownership changes over where a training provider takes over 100% of the shareholdings over a 12 month period. So it could be so this means that you may only buy 15% shares, but within that 12 month period from when you bought 15%. If you take over 100%, within that 12 month period, that would trigger this self assessment. So the best way to do this is to stay on for, you know, 13 months, so that you get past the 12 month period. And that way, you should be delivering their training and assessment with the new with the old owner. So that you’re learning, basically, that’s what ESCO want you to do, they want you to learn how to run an RTO through being with the previous owner of the RTO. So this is a requirement. If asked, and the provider has either on and no ongoing students or not had more than 10 students complete a course within the last 12 months of registration, you’ll need to complete Section A and B as well, whether that’s 100% or 50% of the shares. So as far as who responds to change of ownership, so ownership, once the notification has been submitted to ASCO, that means that we’re in that process of change of audit ownership, there will be a compliance audit. So somewhere in the next 12 months, and often it can be triggered straightaway. So depending on what’s on Ask was timetable, it could happen within a month of change of ownership, you’ll be audited. So just like an initial registration, so you’ll need to provide all of the evidence, as per an initial registration would add in the compliance audit. So you need to submit all of the documentation for self assessment. And they’ll get you to do the self assessment tool and focus on whether the new owner so this is what ask will do has sufficient resources in place to be able to continue running their RTO they review all of your documentation and your audio to determine that you have sufficient support for your students. And if noncompliant regulatory action can happen. So that could include cancellation of your registration. So these increased scrutiny is for the first 12 months while you’re owning and operating the audio, and there will be charges additional charges from escuela to you, for those audits. And for all this process, it actually ends up costing more than doing an initial registration, when it comes to all the fees that you pay to ask are compared to initial. So it’s a lot more involved. I’ll give you an example of a client that we had recently, actually, they actually came to us about two years ago, or two and a half years ago. And they wanted us to do, they’ll use going to buy an RTO. He was a trainer or assessor of that RTO. And he wanted to buy the RTO. There was a lot of issues with the onar, they put it off there was sick, there was all sorts of issues. And then he came back to us this year, two and a half years ago, very different if you’re going to buy an RTO. Now, massive, massive changes. So he came back to us this year. He bought the RTO didn’t do anything with us for due diligence, just bought it. ASCO came out, canceled the original registration. He lost all of the money that he paid for the RTO as well as all of the other fees and stuff that he paid for ASCO fees and consultant fees and things like that, lost all of that. And now he’s doing initial registration with us. So it is a big risk. Do you know who you’re dealing with, when you’re buying the RTO? You need to be very, very careful with what you’re doing when you buy an RTO. And as you can see, ASCO considers it an initial registration to how are you complying with that.
Angela Connell
So the risk of buying an RTO is not quicker than setting up an RTO. It is a myth. In the past, yes, it was quicker, but not anymore. It is not quicker to buy an RTO than it is to set up your own. You need to complete the whole process of change Have you the whole thing that can happen. These are one of the reasons you should complete the whole process of change of ownership, and then you deem critically noncompliant and that could have been because of the previous owner could have been hold ups, it could have been all sorts of things that could have caused that the RTR registration is canceled due to not meeting the ASCO compliance audit requirements. As I just gave an example, in that case study, loss of time for the whole process. And you have to begin all over again and started getting like that client that we’ve got, you waste a whole heap of money on buying the RTO, and perhaps even hiring a consultant to rectify the non compliances, which we’ve had to do many times in the past, to then lose it to lose everything, and then ending up with a record with Esquire which increases your risk if you do decide to go back and set up an RTO. So you don’t want to have that risk. And have that record with Askar if you’ve tried to buy an RTO and then it got shut down. So buying versus registering your own RTO or cost business buying takes longer to buy an RTO than it would during an initial registration will be required to go through the same process as initial registration. So you’re not avoiding it, you’ll have to go through the same process. You put yourself at risk of having cancellation and then a bad name with ASCO and you don’t want to have that if that’s your plan is to stay in the training industry, you waste a whole heap of time and money. new owners are audited. So as the new directors, as the shareholders, you are audited. And you’re responsible for everything. And this means everything that the previous owner did. So if they claim government funding when they should nerve, you’re responsible. If they were non compliant, didn’t collect sufficient evidence against students who complete a training, you’re responsible. So there’s a lot involved when you buy an RTO and then they may not even have the training products you want on the scope. So then you’re gonna have to add them and that increases the risk because then you’re doing an additional scope and ask will wanna audit you. So it’s not easier to buy. Now I’m not saying like I’ve sold two of my own artios and I put a lot of work into those artios but what I did was when I sold Then I provided support to the new owners, and I train them on what to do. So if you have someone who is willing to do that, and basically what you need to do is keep it under 50%. So they are going to need to own 51%, you’re going to own 49%. And you keep them on for at least one year one day, so that you can get that training. So that’s where it could work is doing it that way. But lots of risks there as well. So registering your own RTO, it’s a lower risk. As there’s no non compliances, no hidden skeletons in the closet, you know what’s going to happen, because you went through the whole process, you also learned so much along the way, when you do an initial registration yourself, there are no hidden surprises. And you get to choose what qualifications you want to put on your scope, the way I describe it, it’s like building a new house, you get to choose the carpet, and the tiles and the wallpaper, you get to choose everything. When you set up your own RTO you get to choose what qualifications you have in your scope, what training materials, you have them you have, who are the trainers and assessors, you get to choose all of that. So big thing to think about. Now, I promised that I would show you what this document looks like. So I am just going to go through that now with you. So this is the self assessment form. So this is what the government will require you to complete when you buy an RTO. Now when you do an initial registration, you’re also going to do one of these forms as well. So it’s quite involved. It has all of the conditions in there and what the requirements are and the additional evidence that you need to submit. But it also has, so you’ve got to complete it, fill the forms in. And then you’ve got to do an audit of all of the documentation. Now, if you say yes, to anything here,
Angela Connell
they’re going to expect to see evidence of that. If you have no, it will be rejected. You can be rejected if it’s Yes. So when they come out in order, and you have Yes, yes, yes, yes, yes, for all of these, they will expect to see evidence of that when they audit you. So they want to make sure that you have training and assessment strategies in place, you have trainers and assessors, you have the assessment tools, you have all of the equipment, you have the training venues, all of it policies and procedures, documentation, this, you need to submit with the change of ownership form. So this needs to go with it. So if the new if the previous owner doesn’t have all of this in place, you’re going to have to do that within that 90 day period and make sure it’s submitted. So it’s really important that you have all of this in place before you buy the RTO. So you need to have everything in place before you do that. So that would mean if some if you were buying an RTO, and they had to do all of this before the settlement, you’ll be paying more for the RTO, you’ll be paying a lot more because this is a lot more work. Like I know. I’ve done it. I know how much work is involved. It’s an initial registration. It’s the whole process. So you’re going to have to do this as well, when we work with our clients. We do this self assessment with our clients when we submit, there’s no way our clients could do this on their own. It’s so much work involved. So yeah, you need to really consider what is it that you want to do? And what’s the process? And how do you want to do this. So okay, I may have scared you off buying an RTO. But I don’t want to scare you off setting up an RTO because there is so much involved. Also, we do provide a due diligence package, so we can help with the buying of an RTO. And I highly recommend that you do get a consultant involved when you buy an RTO because the last thing you want is to spend all that time and money for the asker to cancel the registration. You don’t want that you want to make sure that you’re not buying a higher risk, you want to be managing that. So if you want to set up an RTO now I love being in the training industry and I love our clients and who we work with. This is what you need to do. So you need to begin with the end in mind. So you may already have a company set up and but you may want to set up a new entity or you may want to set up under the current company. If you don’t have a current company you need to set up a company and then put it on the RTS can be registered under a range of structures. So there is proprietary limited sole trader trust, as squirt prefers proprietary limited, it is also much easier to sell later on down the track, it doesn’t have as many issues as a trust or a sole trader. So there’s a lot more issues around that. So we highly recommend a proprietary limited. One of the things I recommend if you already have another company in place, if you go to sell it, so if you were to do your RTO, under the registration of your current company, when you go to sell that company or the RTO, you have to sell the whole lot together, it you can’t separate it, because you can’t transfer that out, you’ve got to sell the shares in the company. So what we recommend is you set up a trust, you have the company or the company you already have, and the RTO under that trust. And then that way, you can have one ABN under the trust that operates under all of those entities. So that makes it so much easier with managing all of those. But it’s so much easier if you decide to separate them later on down the track. So who should you have in your RTO, we have many clients who have set up as me, myself and I RTO. So what that means, on the CEO, I’m the trainer on financial officer, I do the marketing, I do the recruitment, I do everything,
Angela Connell
you can do it like that, I don’t recommend it, because it will take you forever to take off, you really need to have a team behind you to help you through this whole process. Even just doing the initial registration process, there’s a lot of work involved. So you can do it is not a problem. As long as you can demonstrate as a CEO, that you’re fit and proper person, as a trainer assessor, you have the skills and knowledge, the experience, the qualifications, you have everything in place. So you can do do that that’s not a problem. You don’t need to have a team but we do highly, highly recommend that you do so at least have an admin assistant or get a trainer or SSR. I always say to our clients, you if you want to run an operate an RTO you can’t be the trainer forever. And the reason why is you’ll never grow your business. Right? Great. We’ve got a really good example of a client who we’ve been working with at the start of the year. So we do coaching as part out of our membership and our kickstart package. We do weekly coaching with our clients and at the start of the year, she was still in the training room. And I say you, you’re not going to make any money when you’re in the training room. It’s great, and you enjoy it. But Chris, that’s what she said up it. I love it. I love being in the training room. And I said, Yeah, but look at all the money that you’re losing. Every day, you’re in that training room, you need to get out of the training room and run this business, you got to work on the business, not in the business, because you’ll never make any money working in the business, you’ve got to work on it. She changed. She got out of the training room, within a couple of weeks, she had a trainer hired, and now her business has taken off totally, totally different. So it’s something I highly recommend to our clients. You can’t stay in the training room because your business won’t grow. And I’ve seen it I’ve seen people set up artios they didn’t hire anybody else. They were the trainer or assessor, and their business doesn’t go anywhere. So it’s not going to grow if you don’t have a team behind you. If you are doing crowdcast you need to make sure you’ve got a minimum of an academic manager and a student support officer to meet the requirements of capacity of students you wish to apply for trainers and assessors, you’ll need to have someone to go through the assessment tools with the auditor. So they have a good understanding of the course and the requirements of the course as well. Okay, so how long does it take we get asked this question a lot. How long will the whole process take? So according to ask wha it will take 12 to 18 months? It can take longer? It depends on what you’re doing, what qualifications you’re putting on your scope. Where do you have anything in place right now. So if you’re delivering non accredited training right now, you may already have equipment and training rooms and things like that in place. So it all depends on all those variables. So our process for artios we have submitted within three to four months. But it can take being realistic six to 12 months, six to 12 months to get your application submitted to ask why? And this really depends on as I said before, what resources you have in place and who you’ve got helping you. Now we have had I have had a client who just 100% focused on their kickstart package their initial registration and we have them submit Within a month, but they were, you know, seven days a week, for a whole month, just focused on that. That’s all they do. And we’ve got them submitted. So you can do it. Don’t regret it. If you’re, if you’re running another business or you’re working for someone else, be realistic, because you’ve got to still do that, as well as trying to set up an RTO. And there’s quite a bit of work involved with setting up an RTO. I know people where it’s taken them three years to get their application submitted, that’s when they tried to do it on their own, because they didn’t know what the process is. So yeah, you need to be realistic when you’re looking at the timeframes for submitting this and looking at your timeframe what you have in place, what are valid, what resources do you have in place? Do I need to be an expert, so you don’t need to be an expert in compliance or training, we do recommend that you’re a good entrepreneur or business owner, you’re getting support, I recommend coaches. And I also recommend that you have someone on your team who does know what they’re doing.
Angela Connell
They’d like us like what we do, we do it day in day out. It’s it’s what we do, we are compliance, and we help people all the time. So it’s really good. If you’ve got a team there, as I said before trainers and assessors who can support you as well. And that we recommend that you as a newbie, that you get an experienced trainer, if you’re not a trainer, I recommend that you get an experienced trainer, because that will help you through the whole process of getting registered. The car directors do not need to have any qualifications experience or training or anything like that. That might change though, because we’ll have it reform coming up. That could change within that. But at the moment, no, you don’t need to have any of that. But if you are doing crackhouse, you need to have a principal executive officer who has to have a minimum of five years experience working in Australia. So there is only that requirement there. Now, another area where we get often asked a lot of question is how much does it cost. So you need to consider not just our fees, if you’re looking at hiring the best It is not just alpha is how fees are like you look at an iceberg. And you can just see the top of the iceberg. This is us at the top, then down here is all your other fees. We just the tip, there is so much more involved. So you need to be serious, seriously, this is a business you’re setting up, you need to be serious about this. So there are school fees, there are registration and set up fees. So there is things like you’ve got to get resources and training rooms and trainers and assessment tools and equipment, there’s lots of stuff that you need to get in place, you may need to hire staff through this process. So for an RTO, we recommend a minimum of $75,000, a minimum of 75. So that will get you through that whole process. So this is six to 12 months. So following registration, you’ve got to go through no setting up a marketing and business development and growth and all that stuff. You need at least to have access to at least a minimum of $75,000 cry costs, because there’s few more requirements around that there are other documents you got to have in place, you’ve got to have a building. There’s all sorts of things that you’ve got to have in place to meet crackhouse requirements at a p O, A academic officer, there’s all sorts of things you need to have in place, minimum $100,000. This is realistic, you really need to think about this. This is a business. It’s not a little business, it’s highly regulated business. It’s not like opening a fish and chip shop where you can just buy a shop and then stick get some food and stick it in a fryer. It’s very, very, very different. We have a regulatory body that is very strict because you got to think about it. All right. You’re delivering training and assessment for students who are going to go into the workplace, and they’re going to be responsible once you’ve taught them to have the skills or knowledge that you delivered. Now, if you didn’t deliver that properly, some of the highest risk is a critical incident. Someone could die. It could be a WHS hazard. It could be they weren’t taught properly. We’ve heard of instances where students have gone into a childcare center and they didn’t know how to put a nappy on. They got a diploma in childcare, but don’t know how to put an appeal. But they’re disposable. It’s not that hard. But they weren’t taught so they never actually did any hands on practical experience. You need to do hands on practical experience before you go into the web. Place. So how are you making sure that so this is why it’s worth, like, you’ve it’s a big commitment doing this. But there are so many benefits out of it, I love working in the training industry, there’s so much in it that you can, you know, get so much benefits out of it. Money is one, but also a lot of satisfaction working in the training industry. So where do others fail, we often get people who’ve tried to do this on their own, they are the board and RTO, or they tried to set up on their own, and they fail. And then they come to us and go help
Angela Connell
trying to help us. That’s really hard for us, because it’s actually a lot more work to help you when we don’t know what you did at your audit. So we need to know fix that. So often what happens is people have live in an understanding of what to expect at audit, they don’t know what the process is, they’re very experienced one before. And I don’t know what’s going to happen. Now audits can be totally different. It really depends on your auditor, what can happen or order. And it depends on your training products and what you got in place, you’re trying to as assessors, there’s so many variables that are involved. They didn’t their training and assessment strategies, as I said earlier, are the number one non compliance when you go to audit. So it is a big issue, that with the training and assessment strategies, and delivery system plans, so it’s not clear how you’re going to deliver this training and assessment to meet the requirements of the training product. So that’s another high non compliance. And then trainers and assessors have insufficient skills and knowledge to meet the requirements of the training product that they’re delivering. So a huge non compliance, it’s a huge area where a lot of people are non compliance. The other one is assessment tools, you’re not collecting sufficient evidence to demonstrate that the student is competent in the units or competencies that you’ve delivered. So it’s a huge non compliance when you go to audit. So you want to make sure that you’ve got the right tools, and that you’re collecting sufficient evidence and that you know what that is, it’s a huge area that we deliver training in, because we know that this is the highest non compliance, when you go to audit these areas here do not have the capacity to deliver what they said they were going to do in the financial viability risk assessment. So that’s another area, they don’t have the policies and procedures in place to support what they’re going to do to look after the students and meet the requirements of the legislation, or those documents that some more support it or the training facilities or do not