Community Bank Business Plan and SWOT Analysis

Community Bank Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Community Bank Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Community Bank business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Community banks are the lifeblood of many small towns and small cities. They provide the capital needed to purchase homes, acquire automobiles, and establish small businesses. Although the model of community banking has changed over the past 20 years given the substantial number of acquisitions within the industry, many people still favor using a community bank over a large commercial bank given the personal touch provided by the tellers, bankers, and senior management. This trend is not expected to change anytime in the near future given the fact that people these days  prefer more personal and customer service friendly environment, which is really only provided by a small community oriented bank. These businesses are relatively immune from negative changes in the economy given that they operate with a strong degree of regulatory oversight. The trend of having to comply with a number of both state and federal laws as relates to banking services is not expected to change anytime in the near future given that there was a substantial recession within the last 10 years.

The startup cost for nuclear community bank are substantial. Usually an equity capital investment of at least $10 million is needed so that the bank can acquire its facilities, acquire its banking license, and have enough capital on hand to remain within the regulatory framework as it relates to operating a FDIC insured financial institution. The gross margins generated from banking activities are very high. These companies generate their income from interest, loan closing fees, account fees, and other ancillary services such as wealth management and broker dealer services. One of the common trends within this industry is to have a community bank operate as a one-stop shop for all types of financial services including retirement and related investment services. This trend is expected to continue given that these financial institutions operate substantially with on economies of scale basis.

If you’re looking to start a new community bank, then a business plan is required not only for investors but also for financial regulators as well. A three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, business ratios page, lending ratios page, credit manual, operations manual, and credit procedures and protocols need to be developed for this business can watches operations. We know that is quite a bit to have to do, but banks and financial institutions are the most regulated types of businesses within the United States. Beyond the business plan, a community bank marketing plan also needs to be developed so that customers will come in and create depository account at the onset of operations. Usually, a new bank will focus substantially on providing product giveaways, discounts on loan interest, and other promotions that will drive people to location. Prior to the onset of operations, most managers of community banks will look to establish relationships with small businesses so that they keep their merchant accounts and business bank accounts with the bank. As community banks are geared towards the local community, many small business owners like to use these companies instead of larger banks given that they have easier access to credit at all times.

Beyond the need for developing a community bank business plan and marketing plan, many individuals that are looking to start this type of business will also conduct a SWOT analysis. As it relates to the strengths, a community bank is almost always able to remain profitable and generate high gross margins from their lending and banking activities. For weaknesses, the number of laws and regulations that these entities need to comply with on a regular basis is substantial and ongoing. Relating to opportunities, many of these institutions will look to integrate registered investment advisory services as well as broker-dealer services into their overall service offerings. For threats, these businesses are highly subject to changes in the economic climate. Spikes in interest rates and declines in economic productivity can impact the ability for a community bank to successfully generate interest from loans. Additionally, banks need to be continually aware of their lending portfolios and their default rates.

Starting a community bank is not something that any one individual can do on their own. In fact, a board of directors and a number of investors are usually required to put up the necessary capital in order to launch operations. However, once established these businesses can be hot can become highly lucrative given the fact that they generate very high margin streams of revenue from lending activities. The demand for community banking is not expected to wane anytime soon.