 |
Why
Have a Business Plan? |
|
| |
Every successful
credit union needs a business plan. A business plan is a "roadmap"
of success for the credit union. Knowing where your credit union
needs to go, where it wants to go, and how it is going to get
there is crucial. The credit union's board of directors is responsible
for the credit union's business plan. Listed below are key elements
that every credit union's business plan should include:
|
|
|
|
Mission
Statement |
Back
to top
|
| |
The
mission of the credit union is a short, easy to understand
statement of what the credit union exists to do. It acts as
a well written, defined statement of purpose. It provides
employees and volunteer officials with a shared sense of opportunity,
direction, importance, and achievement.
- This stated purpose is a beacon that brings together employees
and a diversity of goals, and guides them all towards the
achievement of those goals.
|
|
|
The
Environmental Analysis |
Back
to top
|
| |
- Review
the most current Financial Performance Report provided by
NCUA. Especially review the annual year-ending analysis
which provides five years of ratios and data regarding your
credit union.
- Review
regulatory exams and issues.
- View
CUNA's Environmental Scan video to learn about the credit
union industry's environment on a national scale.
- Determine
and set goals to make needed changes to your credit union's
environment
|
|
|
Market
Summary |
Back
to top
|
| |
Review
your credit union's market. Ask and determine the answers to
these questions.
- Who
are our members?
- What
is our member and potential member base?
- What
is the market penetration of our field-of-membership (FOM)?
- What
is our members' economic status?
- Write
them down as part of your business plan.
- Use
a market survey to answer questions regarding the financial
needs/wants of members.
|
|
|
Problems
and Opportunities |
Back
to top
|
| |
- Problems
& Opportunities
- State
credit union problems, and define nature of product/service
opportunities created by those problems
|
|
|
Competition
and Competitive Opportunities |
Back
to top
|
| |
- Summarize
competition
- Outline
your credit union's competitive advantage
- Outline
your competitive opportunities
|
|
|
Plan
for Different Scenarios |
Back
to top
|
| |
- High/low
interest rate environment
- Full
employment and/or layoffs at sponsor(s) or single employee
groups
- Contingency
plans for sponsor mergers and/or downsizing.
|
|
|
Goals
& Objectives |
Back
to top
|
| |
- 1 to
2 -Year Goals
- Written
statement(s) that are clear and understandable
- They
are consistent with strategic plan
- Realistic
- Measurable
objectives
- Establish
a method(s) of measuring progress
|
|
|
Financial
Plan |
Back
to top
|
| |
- The
objectives should be expressed in terms of income and expense
paths.
- Projected
balance sheets and other financial impact analysis should
be performed.
|
|
|
Resource
Requirements |
Back
to top
|
| |
- Technology
Requirements
- Personnel
Requirements
- Resource
Requirements
- financial,
distribution, promotion,etc.
- External
Requirements
- products/services/technology
required to be purchased from outside vendors
|
|
|
Risks
& Rewards |
Back
to top
|
| |
- Risks
- Make
a clear statement of acceptable level of risk that the credit
union can assume in achieving the plan.
- Make
sure that the plan provides sufficient capital to support
any additional risk-taking.
|
|
|
Federal
and State Laws |
Back
to top
|
| |
- The
plan must be consistent with federal and state laws and
NCUA regulations.
|
|
|
Communication |
Back
to top
|
| |
- The
plan must be communicated to management and staff at every
level to assure adherence to and the success of the business
plan.
|
|
