Growing Your NHO Enterprise Alaka`ina Foundation Family of Companies Presented by: Philip Kahue| Date: 1 Aug 2018

The Alaka`ina Foundation Family of Companies KŪPONO PO`OKELA POLOLEI GOVERNMENT SERVICES SOLUTIONS SOLUTIONS 2005 2012 2013 2016 2018 2018 2018 LAULIMA KĀPILI KĪKAHA 7 Companies in our NHO Family 4 NHO-owned 8(a); 2 HUBZone; and 1 SB Over $100M in annual revenue, 700+ employees in 17 states and overseas locations GOVERNMENT SOLUTIONS SERVICES SOLUTIONS Alaka`ina Foundation Family of Companies’ Proprietary

Alaka`ina Foundation Family of Companies (FOCs) Proprietary Overview Goal. Manage Your Growth Without Negatively Impacting Your NHO Available Capital Develop and Grow Your Leadership Team as You Grow Develop and Refine Your Processes as You Grow Relationships Trusted Legal and Accounting Advisors Diversification This is not a “How To”, but a “How We Did It”. It worked for us, you need to decide what will work for you. Alaka`ina Foundation Family of Companies (FOCs) Proprietary

Alaka`ina Foundation Family of Companies (FOCs) Proprietary Goal Manage your growth without negatively impacting your NHO NHOs have no equity, land or water rights; they literally start with little to no capital Minority owners play a significant role in capitalizing the organization, yet without exerting control High level of trust and confidence between Minority Owners, NHO Board of Directors, and Company Corporate Leadership NHO BOD will provide proper oversight of management of the for-profit company(s); management and corporate structure, and financing Minority owners want assurance that their investment will bear fruit Both want to ensure that majority of profits will principally benefit the Native Hawaiian population Company Corporate Leadership must take the vision and operationalize it Alaka`ina Foundation Family of Companies (FOCs) Proprietary

Growing your NHO Enterprise Available Capital You need a financial institution that will grow with you, extending your line of credit when you need it You must prove your capability by meeting your covenants established with your lending institution To keep your line open To provide increases when you need it Develop and Grow Your Leadership Team as You Grow Your leadership team has to have the same shared vision as your NHO BOD and Minority Owners; personal goals cannot be in contravention When to grow your team (chicken and the egg) Growth from within tends to be more successful, but not gospel When to grow your team. 1. HR ~ 40 employees. Finance and Contracting ~ 80 employees. BD, B&P, Recruiting ~ 320 employees Alaka`ina Foundation Family of Companies (FOCs) Proprietary

Growing Your NHO Enterprise Engagement Agreements; No shared resources Initially to bridge the gap Then to concentrate experience for economies of scale Develop and Refine Your Processes as You Grow You’ll be forced to refine your processes when you exceed 50 employees, but constant refining occurs throughout your lifecycle You will be audited Corporate Policies will need to be reviewed: New contracts in new lines of work Expansion to new companies Expansion in new geographical regions (nationally and internationally) Relationships, yes all of them No Shared Resources; Besides the obvious ones, most catchy areas are in Contracts Management, and BD. Ensure that a Senior Officer in the company is approving contract and BD documents to avoid affiliation concerns. Expect audits from DCAA, OFCCP, DOL, and DCMA (purchasing), other Federal Agencies for licenses (ITAR, NRA, etc.) Alaka`ina Foundation Family of Companies (FOCs) Proprietary

Growing Your NHO Enterprise Trusted Legal and Accounting Advisors The right advice to stay relevant in SBA program Formation of new companies, changes of ownership, changes of management Articles of Incorporation, Operating Agreements The right advice to stay relevant with IRS and State AG Office S Corps, C Corps, or LLCs Non-profit tax status The right advice to stay relevant with current and future partners Forming Mentor-Protégé Relationships, Joint Ventures, Prime-Sub Diversification SBA rules require that new companies in NHO Family do not operate in same Primary NAICS code as current or former participant (for up to 2 years after leaving program) Hopefully occurs as a natural consequence of growth Primary NAICS Code change for an 8(a) that is leaving the program.