Is there anyone who isn't trying to get more out of their budget, or who doesn't find more year left at the end of the budget?
Angie Jones, business development director at Educational Employees Credit Union in Jacksonville, Fla., shared with The Credit Union Journal's Business Development Conference here her ideas on what the budget process should be and how to stretch that budget if need be (and need likely will be).
Budgeting, she said, is very simple: the amount of money going out must be less than the amount of money coming in.
Not so simple, she noted, is the typical budget situation in which there's more money that NEEDS to go out than is available.
Resources To Be Used In Planning
In building a business development plan, the emphasis must be on the word "plan'," she said. "You can use the research that is found in the environmental scan. That's a very, very valuable resource," suggested Jones, who also urged credit unions to use historical data drawn from the MCIF and other databases that is available in order to set budgets.
Among Jones' other recommendations:
* Make a list of all the items large and small that you need or would like to have, but don't think you can afford. "List everything and use it a brainstorming session," urged Jones. "You would be amazed at how many things can come out of it. And as you look down the list you will be surprised how many items are within reach."
* Decide what you want to accomplish and rank the importance of those goals.
* Determine fixed costs.
* Determine variable costs.
"Once you've plotted your expenses and your operation plan goals, ask 'Do they match?' " advised Jones. "Probably not, and chances are it's the expense side that still needs some work. To most people budget means to 'cut back.' It's not necessarily cutting back, but spending in a way that gets the things you really need and want and putting the money where you have the most to gain."
One thing any credit union should do is ask its business development team or management team where there are alternatives to achieving an "equally favorable end-result at a lower cost. That means re- evaluating current processes and having flexibility."
Current projects that are ongoing should be regularly reviewed for places where "corners can be cut," according to Jones. SEG newsletters, SEG luncheons and other recurring costs might offer opportunity to cut some spending. She noted her own favorite SEG function, a luncheon held at the Indianapolis Speedway, evolved as the credit union's field evolved, and eventually became less productive. Jones said her credit union has found it can get prizes for events donated free of charge to the credit union. It also sells advertising on the backpage of some of its materials, or lets the printer have that advertising space in exchange for printing materials for free.
And Then There's Another Tactic
Jones, who drew some laughs in the process, also urged business development execs to use the marketing department's budget and resources as often as possible. "I see printed materials all the time that are extras that you can use," said Jones. "Use their promotions, too. If you can show that you can help them achieve goals, marketing can be a key."
Jones further urged regular review of vendors, especially those with whom the credit union has long- standing relationships. "I know you can get friendly with vendors, but you can also work them against each other," said Jones, who noted she also uses branch personnel at slower branches and slower times to stuff envelopes and do other similar work.
