INTRODUCTION
Once you have made the decision to sell property or services externally you should complete the Request to Conduct External Sales and prepare an appropriate business plan.
Note: This form is designed to be used by units to:
- Capture the scope of the University external sales activities
- Secure necessary approvals before sales begin
- Facilitate University compliance with legal, insurance, and tax requirements
- .Identify potential departmental and University risks
When there are unique legal, tax, or insurance types of risk, the activity must be reviewed by the Office of External Sales and approved by the Sr VP for Finance and Operations prior to implementation. Otherwise the activity may be approved by your Dean or Department Head, as designated by the Dean.
Complete the Request to Conduct External Sales and follow routing instructions.
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PREPARE A BUSINESS PLAN AND REVIEW WITH YOUR UNIT
A business plan should generally address all of the following items.
A description of the department, including its primary activities at the University.
A description of the proposed sales activity.
How the proposed sales activity relates to the department's mission and purpose or leverages existing resources of the department.
Who within the department will be responsible for the proposed activity.
Who within the department will be responsible for reporting and monitoring the finances of the proposed activity.
Any other sales activity currently being conducted by the department that would demonstrate the department's ability to successfully manage the proposed activity.
Anticipated start up date and any related or dependent deadlines.
- Marketing and Pricing Information
Identify who else (in or outside the University) performs these services or sells these goods and indicate their prices.
Describe type and size of expected customer base.
Indicate the expected per-unit price(s), and provide an analysis of the product's cost structure (operating costs, cost of goods sold, faculty and administrative costs other direct and indirect costs).
- Budgeting and Forecasting
Prepare a financial forecast for the current and next 3 fiscal years, detailing estimated annual revenues, expenses, capital needs, and sales volumes.
Prepare a projection of capital funding needs for expenditures such as equipment, facilities, or inventory acquisition.
Note: This procedure applies to external sales. For any gifts see Policy 3.16.1 - Accepting and Managing Gifts. For sales related to Sponsored Projects, see Policy 2.1.2 - Managing Program Income Earned on Sponsored Projects.
OBTAIN APPROPRIATE APPROVAL
Any department, college, or administrative unit planning to sell goods or services to external customers must obtain appropriate approval. The required signatures for approval are: applicant, Department Head (or Director), Dean and Associate Vice President for Budget and Finance or their designee.
When Can I Use a Standard University Contract to Execute an External Sales Transaction?
- The Office of the General Counsel has approved the contracts listed below. These contracts can be used for any approved external sales activity.
Activities =Contract to Use
Which External Sales Activities Are Exempt from the Approval Requirement?
- Auxiliary sales to students, faculty and staff
- ISO sales to University departments
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