PROPOSAL FOR OPENING NEW COLUMBIA BANK BRANCH

Document Sample
PROPOSAL FOR OPENING NEW COLUMBIA BANK BRANCH Powered By Docstoc
					PROPOSAL FOR OPENING NEW COLUMBIA BANK
                BRANCH




     Proposed by Valerie Angeles
       Proposed to Dr. Casale
          October 19, 2004
Table of Contents
____________________________________________


1.   Executive Summary……………………………………Page 1

2.   Technical Section
      2.1 Background……………………………………………Page 1
      2.2 Introduction…………………………………Page 1-2
      2.3 Plan………………………………………………………Page 2

3.   Management Section
      3.1 Personnel………………………………………………Page 2-3
      3.2 Qualifications…………………………………Page 3
      3.3 Time……………………………………………………………Page 3

4.   Budget Section
      4.1 Leasehold Improvement Costs……Page 4
      4.2 Office Furniture…………………………………Page 4
      4.3 Monthly Expenses…………………………………Page 4

5.   Conclusion……………………………………………………………Page 5
Executive Summary
____________________________________________
This proposal is suggesting that a Columbia Bank branch
should be built in Sayreville, New Jersey. Today,
Sayreville is quickly growing in terms of both population
and businesses. With $631,590 a brand new Columbia Bank
branch will be opened in one of the most promising towns in
central New Jersey. The next few pages describe in detail
the advantages and needs involved in expanding Columbia
Bank to 37 branches.



Technical Section
___________________________________________________

Background
For the past 77 years, Columbia Bank has been a “financial
friend” of New Jersey. Originally opened in Fair Lawn, New
Jersey by some of its prominent citizens as the Fair Lawn
Building and Loan Association, Columbia Bank today has 36
branches throughout the garden state. The success and
growth of this prosperous bank is due to its creed of
shared values. Employees of Columbia Bank have always
believed that it is their responsibility to provide their
customers and members of the community with financial
services supported by excellence in quality of product,
service, and performance.

Introduction
I have been a loyal customer of Columbia Bank ever since I
started banking. Not once did I ever experience poor
customer service nor was I ever dissatisfied by any of
their products and services. At this time, the Maygar Bank
in Sayreville is ready to give up their property as a
result of failure. Therefore, I would like to open a new
Columbia Bank branch at this location.

Due to the growth and success of Columbia Bank, I feel that
opening another branch at this site would be the perfect
opportunity for expansion because of the increased
population and competition of other banks in the area.
Over the last few years, Sayreville has become densely
populated and commercialized because of all the homes built
and new businesses. Currently, there are five banks along
a two mile radius on Ernston Road including: Sun National,
Bank of New York, Commerce Bank, Washington Mutual, and
First Savings Bank. Of these five banks, Commerce Bank is
open seven days a week with extended late night hours.

Plan
Compared to other banks, Columbia Bank has the closest
hours to Commerce Bank in terms of availability to
customers. We have extended lobby hours on Friday from
9a.m. - 7p.m. and Saturday lobby hours from 9a.m. – 1p.m.
In an effort to be more competitive, I think we should set
a precedent for Columbia and offer seven day banking,
particularly at the Sayreville branch. Offering more hours
to our customers to come in and speak with live tellers and
customer service representatives would give us the ability
to address their needs everyday and let them know how
dedicated we are to pleasing and assisting them. The hours
from Monday thru Thursday will stay the same, which are
8a.m. – 8p.m. in the drive-thru and 9a.m. – 3p.m. in the
lobby. The only difference would be extended Saturday
lobby hours until 3p.m., and Sunday hours from 9a.m. –
1p.m. in both the lobby and drive-thru.



Management Section
___________________________________________________________

Personnel
In order to run the branch efficiently and smoothly, a
total of nine employees will be needed, which will include:
one branch manager, one customer service representative,
two full-time tellers, one head teller, one mid-day teller,
two night tellers, and one float teller/CSR who will assist
the customer service representative when it gets busy,
otherwise work as a teller. Each employee will be required
to have some banking or other customer service related
experience, but preferably banking since the facility will
be new. It is imperative to the branch’s success that the
employees be experienced and well trained especially in the
beginning, so that they will make a good first impression
to the customers.
     Qualifications
     As for myself, I have been in the banking work environment
     since college. I started off as a night teller at Columbia
     as a freshman in college and gradually worked my way up to
     a customer service representative. I am well trained in
     both areas as well as had the opportunity to be a
     supervisor. As far as my educational background, I
     obtained my Bachelor’s of Arts Degree in Business and
     Finance with a minor in Management from The College of New
     Jersey last May. In the meantime, I've been training
     tellers who have just joined the Columbia Bank team
     customer service skills and the computer training necessary
     to perform teller duties. With my banking experience and
     educational background, I feel more than capable to operate
     my own branch.

     Time
     Since the building that the branch is going to be in is
     already up, there is no need to worry about construction.
     We just have to focus on improvements and change the
     facility to Columbia Bank. I have constructed a detailed
     timeline to illustrate the planning involved.


       Purchase       Repaint                   Change               Replace main
       property       interior of               tiling and           vault, ATM
                                                                     and safety
        11/25/04      facility                  carpeting            deposit boxes
                      11/26/04                  12/01/04             12/05/04

                                    Bring in
                                    furniture
                                    (desks,
                                    chairs,
                                    tables,
                                    shelves)
                                    12/10/04

Bring in office       Staff                           Staff set up     Grand
equipment             meeting                         branch           opening!
(computers,                                           12/26/04
printers, supplies)   12/16/04                        thru
                                                                       01/05/04
12/15/04                                              12/30/04




     In the midst of the branch being put together, the staff
     will be in two week intensive training at Fair Lawn
     beginning November 27, 2004. Then on December 16 2004,
     there will be a meeting to discuss plans to help organize
     all the supplies and office equipment in the branch prior
     to the grand opening on January 5, 2005.
Budget Section
____________________________________________
The start up costs for opening this branch will include the
down payment for the building which is $300,000, and
improvements which are retiling, repainting, and carpeting.
The fixed assets which consists of the main vault, ATM and
safety deposit boxes have to be replaced as well. This
total is approximately $550,000.00.

In addition to the improvements, we will need office
furniture which will comprise of:
     ~ 4 Modular Workstations (desks): $5,800
     ~ 4 Desk Chairs: $1,500
     ~ 6 Teller Chairs: $1,500
     ~ 14 Customer Chairs: $2,500
     ~ 10 Computer Terminals: $25,000
     ~ 2 Laser Printers: $1,200
     ~ 3 Teller Printers: $1,400
     ~ 6 Telephones: $1,500
     ~ Photocopier: $800
     ~ Fax Machine: $600
        Total: $41,800

Not included in either of the above approximations are the
expected monthly expenses of operating a bank branch, which
are listed below:

     Monthly Payment: $7,800
     Utilities: $850
     Monthly Telephone Bill: $400
     Data Processing Lines: $700
     Federal Deposit Insurance Premium:   $500
     ATM Expense: $650
     Compensation to Staff: $20,000
     FICA Taxes: $790
     Fringe Benefits: $5,000
     Stationary & Printing: $500
     Cleaning Service: $500
     Postage: $100
       Total: $37,790
Further, one more consideration of cost would be
advertising and marketing, which I estimate to cost around
$2,000 for brochures, flyers, and newspaper ads. Thus, in
order to start up a new branch, I would need approximately
$631,590.


Conclusion
____________________________________________
Finally, I would like to take this opportunity to thank you
for reading this proposal. I hope that you can take my
plan into consideration as I strongly believe that opening
another branch would be the perfect opportunity for
Columbia Bank to expand, especially in the Sayreville area.
Yes, $631,590 sounds like a lot of money, but I can assure
you that it will be well worth it once the branch is up and
running. I expect to recover the costs of opening up the
branch within the first year as well as bring in high
profits.