Banking Budget Analysis Opportunity Essay

Pages: 3 (1204 words)  ·  Bibliography Sources: 10  ·  File: .docx  ·  Level: College Senior  ·  Topic: Economics

SAMPLE EXCERPT . . .
The initial budge for marketing for that crucial first year would be set at $90,000 (C-Metrix Solutions 2).

For the second and third years, there will be continuing costs from the first year as well as additional maintenance costs. First and foremost, rent and employee salaries will continue at the same rate. Rent would be around $60,000 annually. Additionally, manager's salaries would be $180,000 annually and bank tellers would be $29,000 each for a total of $522,000 for all three years for six bank tellers. According to the research, once a bank is set up, its maintenance costs should be around 20% of its overall operating profits (VFA 4). In the second and third years, it will also be important to work on generating a unique and completely tailored database software system so that bank customers can also do their banking online as well. Marketing will continue to be a huge cost for all the first three years, but the second and third year would need less of an initial investment. Thus a total of $50,000 a year for each the second and third year would suffice for the budget for marketing (C-Metrix Solutions 2).

Type of Expense

Cost

Year

Total for 3 years

Rent

$60,000 a year

First-Third

$180,000

Manager Salaries (3)

$60,000each for a total of $180,000 a year

First-Third

$540,000

Bank Teller Salaries (6)

$29,000 each for $174,000 annually

First-Third

$522,000

Maintenance Costs

Get full Download Microsoft Word File access
for only $8.97.
20% of profits

Second-Third

20% of Overall Profits

Equipment Costs

$285,000

First

$285,000

Marketing First Year

$90,000

First

$90,000

Marketing the Second and Third

$50,000 each year

Second-Third

$100,000

Essay on Banking Budget Analysis Opportunity Bank Assignment

Clearly, starting a bank is a very costly endeavor. Yet, one cannot skimp on costs because it will ultimately result in a low customer turn out. In order to compete with the bigger banks who have a stronghold in the industry, smaller branches need to acquire enough funding to present themselves as capable and competitive to their customers (Meara 13). There are a number of potential funding sources available for branches looking to open in the New York City area. First, potential bank branches can turn to the Federal government for small business loans at a low return interest rate (Mullenweg 1). Yet, there are also private organizations and investors that would be willing to help fund start up costs for a percentage of the overall equity of the branch. Capital Corp Merchant Banking helps provide loans and also invests in new start up banks upon acceptance of business plans (Capital Corp Merchant Banking 1). Finding multiple sources of funding is ideal so that a tight budget can be stretched further.

Works Cited

Bancology. "Average Branch Costs Now Exceed 2m." The Art of Bank Planning. Vol. 18. 2006. Web. http://www.bancography.com/downloads/Bancology0306.pdf

Bancology. "Smaller Branch Models Taking Hold as Traditional Branch Costs Remain Near $2M." Bancrography. Vol. 47. 2013. Web. http://www.bancography.com/downloads/Bancology0713.pdf

Capital Corp Merchant Banking. "Project Financing and Tailored Funding Solutions in One Firm." Funding. 2013. Web. http://www.capitalcorpmerchantbanking.com/home.html

C-Metrix Solutions. "Branch Marketing Solutions for Banks." Sigillum Corporation. 2009. Web. http://www.c-metrix.com/C-Metrix%20Branch%20Mktg%20Banking.pdf

Hannan, Timothy H. & Hanweck, Gerald A. "Recent Trends in the Number and Size of Bank Branches: An Examination of Likely Determinants." Finance and Economics Discussion Series. Division of Research & Statistics and Monetary Affairs, Federal Reserve Board. 2008. Web. http://www.federalreserve.gov/pubs/feds/2008/200802/200802pap.pdf

Indeed. "Bank Teller Salary." Salary Research. Web. http://www.indeed.com/salary/Bank-Teller.html

Meara, Bob. Is That Any Way to Run a Branch? Workforce Optimization Solutions for Retail Banking. Celent Publishing. 2011.

Mullenweg, Matt. "Starting a Bank." MATT. 2009. Web. http://ma.tt/2009/08/starting-a-bank/

VFA. "Managing a Retail Bank's Facilities for Competitive Advantage." Wordpress. 2006. Web. http://www.vfa.com/wordpress/wp-content/uploads/2010/07/VFA_Whitepaper_RetailBankFaciilties.pdf

Well, Dan. "6 Tips for Renting Small… [END OF PREVIEW] . . . READ MORE

Two Ordering Options:

?
Which Option Should I Choose?
1.  Buy full paper (3 pages)Download Microsoft Word File

Download the perfectly formatted MS Word file!

- or -

2.  Write a NEW paper for me!✍🏻

We'll follow your exact instructions!
Chat with the writer 24/7.

Bank of America SWOT Analysis SWOT


Career Orientation of Bank Managers in Pakistan a Private Public Sector Comparison Term Paper


Bank of America Term Paper


Financial Analysis and Management Thesis


Macroeconomic and International Trade Analysis of Australia Term Paper


View 200+ other related papers  >>

How to Cite "Banking Budget Analysis Opportunity" Essay in a Bibliography:

APA Style

Banking Budget Analysis Opportunity.  (2013, October 4).  Retrieved March 7, 2021, from https://www.essaytown.com/subjects/paper/banking-budget-analysis-opportunity/7439977

MLA Format

"Banking Budget Analysis Opportunity."  4 October 2013.  Web.  7 March 2021. <https://www.essaytown.com/subjects/paper/banking-budget-analysis-opportunity/7439977>.

Chicago Style

"Banking Budget Analysis Opportunity."  Essaytown.com.  October 4, 2013.  Accessed March 7, 2021.
https://www.essaytown.com/subjects/paper/banking-budget-analysis-opportunity/7439977.