Entrepreneurship, Employability Skills and Communication
Domain 7 tests whether you can turn a repair skill into a viable service or custom-hiring enterprise, and communicate professionally with farmers, dealers and inspectors.
Core rules
- Separate fixed costs (shed, insurance, depreciation, licence) from variable costs (fuel, labour, repairs, filters).
- Contribution per hour = charge-out rate − variable cost per hour. Break-even hours = fixed costs ÷ contribution per hour.
- Quote clearly: scope, parts, labour, tax, validity, payment terms. Keep invoices, job cards and warranty records.
- Custom hiring centres need a maintenance schedule, operator training and a booking system; downtime is a business cost.
- Employability: a CV lists trade qualification, machines serviced, tools used and safety training; interview answers use a situation-action-result structure.
Worked example
A custom-hiring unit has fixed costs of ₹1,80,000 per year. Variable cost is ₹250 per hour and the charge is ₹550 per hour. Contribution = 550 − 250 = ₹300 per hour. Break-even = 1,80,000 ÷ 300 = 600 hours per year. Reasoning: every hour above 600 contributes profit; below it, the unit makes a loss. If the owner forgets to include own labour or depreciation in fixed costs, the break-even is understated.
Traps
Calling revenue profit; omitting depreciation and insurance; quoting a price without a validity period; promising a repair deadline without checking parts availability.