How to write a credit union business plan

Written by michele vrouvas
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How to write a credit union business plan
A winning business plan tells investors your credit union has a strategy to achieve prosperity. (business plan 10609 image by pablo from

Attract investors to your credit union with a business plan that communicates a winning message. Like any financial institution, credit unions must convince current and potential members that they are solvent organisations managed by competent people who have a realistic plan for achieving short- and long-term prosperity. Participants also want to know that the credit union's directors have had past success in meeting their asset goals. The more detail the plan offers on strategies for continued financial growth, the better.

Skill level:


  1. 1

    Draft an introduction that explains how the business plan was developed. Discuss the role of directors and managers who designed the credit union's goals. Outline the directors' strategies for achieving those goals. For example, specify that the credit union hopes to promote sound short-range financial planning.

  2. 2

    Prepare a mission statement that declares the institution's short- and long-term vision. List guiding principles, such as hope that the credit union will foster a financial climate that helps all participants.

  3. 3

    Include a page comparing prior goals to outcomes. For example, state the dollar amount of assets established in prior business plans. State the actual amount of assets the institution realised and explain negative discrepancies. Also mention goals for "reserves to assets," "loans," "delinquency" and "net charge-off loans."

  4. 4

    Assess the institution's current financial strength. Outline strengths in management, services provided and the charter's flexibility. Admit weaknesses in member loyalty, the union's relationship with certain employees and its accessibility to all members.

  5. 5

    Detail the institution's market position. Explain whether participants regard the credit as their primary bank. Present figures indicating the institution's market penetration for the past two years. For example, provide percentages for loans, certificates, IRA accounts, Christmas Club accounts, money market accounts and share draft accounts.

  6. 6

    Discuss the institution's competitors and specify which service attracts the most competition. For example, mutual funds might compete with the credit union's offerings of savings accounts and IRAs.

  7. 7

    Summarise current conditions in the financial services industry that directly and indirectly impact credit unions. Explain the effects of regulation or changing interest rates. Predict future financial trends, such as the potential for deregulation of certain services. Assess the impact of these trends on the industry as a whole and on credit unions in particular.

  8. 8

    Conclude with a section of "goals" and "strategy." Present tables listing dollar amounts of goals for the current year and one year thereafter. Outline strategic objectives for reaching the goals. For example, provide details on how the directors intend to create more capital, engender members' loyalty and expand membership.

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