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
	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
	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
	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
	Problems & Opportunities State credit union problems, and define nature of product/service opportunities created by those problems
	Competition and Competitive Opportunities
	Summarize competition Outline your credit union's competitive advantage Outline your competitive opportunities
	Plan for Different Scenarios
	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
	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
	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
	Technology Requirements Personnel Requirements Resource Requirements financial, distribution, promotion,etc. External Requirements products/services/technology required to be purchased from outside vendors
	Risks & Rewards
	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
	The plan must be consistent with federal and state laws and NCUA regulations.
	Communication
	The plan must be communicated to management and staff at every level to assure adherence to and the success of the business plan.

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