Trek Enterprises TEAM WORKBOOK Decisions and Notes for Modules 1 – 5 BSMART Business Simulation Management and Relationship Training

Vision, Mission & Strategy The Foundation of a Business MODULE ONE

Your Vision Our goal is to build on our position as the pre-eminent financial services provider in all markets that we serve. We will be a $4 Billion firm within 5 years continuing to service small business owners, women in transition and high income families. We will expand our geographic footprint into 1-2 strategic locations with a focus on maintaining deep local community roots. Growth in the new markets will be driven by attracting, developing, and retaining the best talent. A vision statement describes what you want your firm to look like in the future, typically three to five years out, or longer, and is both an internal and an external message. If you keep it front and center, it can help you stay focused on your goals. It can also help inspire and motivate your staff, and instill confidence in clients that you know where you want to be in the future. As you craft a vision statement for your firm, ask: What do we aspire to become in three to five years? What does success look like for our firm over this period? What does our end-state look like? A vision statement describes the future state you are looking to create – your desired end-game for the firm in 2020.

Your Mission At Trek Enterprises, we make your business our business. Deeply rooted in the community, we strive to serve as passionate advocates to help our clients achieve their financial goals and provide the tools and resources to meet the unique opportunities and challenges they face throughout the many phases of their lives. At Trek, success is building a client for life. A mission statement describes why you are in business, and is primarily used internally. It plays an important role in helping you assess your activities and determining if they are in line with your core purpose. It can be used to “sanity check” what you may be considering doing – if activities stray from your core purpose, you may decide not to do them or to reevaluate your mission. As you craft a mission statement for your firm, ask: What is our purpose for being here? Why do we do what we do? What needs do clients have when they come to us? What are the most significant strengths of our business? Why do clients choose our firm over other firms? What are our differentiators? A mission statement describes why the organization exists – its core purpose.

SWOT Analysis 4 StrengthsWeaknesses Niches focused on Business owners, women in transition, & wealth families Capacity restrictions, Headcount & Technological redundancy of merged firms Areas of specialization including divorce, liquidity events Tax, Trust, & Estate Planning Lack of Strategic Marketing or Business development plans Size – Large, visible, & established firm with over $2 Billion AUM Underleveraged organization structure Reputation - Nationally recognized speakers Inconsistent Policies & procedures between merged firms Similar culture & values of merged firms Roles & responsibilities need to be strategically defined High staff retention Lack of structure surrounding ongoing training and L & D requires investment Professional credentialed staff including Lawyers, CPA’s, Certified Divorce Financial Analyst, CFA’s & MBA’s. Separate investment models between merged firms Healthy demographic end client base (sound mix of old and young clients)

SWOT Analysis 4 OpportunitiesThreats Improve and refine referral coverage and support Addition of regional offices could dilute the culture Greater leverage of COI network including CPA’s, Divorce Attorneys, Insurance Specialists, etc… Significant investment (time & resources) required to build out new markets Leverage efficiencies associated merger of firms Complexity of the merger could be a distraction in the short-term Expansion into new region(s) Potentially limited by niche focus Rebranding the new combined firm

Initiatives and Notes Initiatives for Improvement Given the recent merger of our two firms, we feel that our most pressing strategic concerns will be to align our organizations, reduce redundancies and find efficiencies that will enable the new firm to continue grow and flourish in the future. It will be critical to evaluate the existing resources (both human & technology), and implement changes where necessary to ensure we meet our future goals. Write down and agree on Strategy initiatives in your firm and elect a “champion” for each initiative. Notes Improvement OpportunityWho Will Complete 1. Align new organization + cultureSulu/Uhura 2. 3-year capital investment planLeo/Monty 3. Talent & role evaluationJim/Leo 4. Technology & Operations ConsolidationJim/Monty 5. Expansion into new regional market(s)Sulu

Growth Building the Firm MODULE TWO

CHARACTERISTICS OF THE IDEAL CLIENT CHARACTERISTICS OF THE NOT-SO-GREAT REFERRAL Business You Would Like To Win HNW Women in transition Women facing divorce or death of a loved one Not interested in planning or clients seeking Investment management services only High Income families Mid career working professionals with over $500K in combined income Clients who only look to us to manage a portion of their assets Business owners, $2-$5 million investable assets who are anticipating a liquidity event – planning Clients that fall below our minimums or seek service outside our expertise Long term partner – clients interested in comprehensive Wealth Planning CHARACTERISTICS OF THE IDEAL COI CHARACTERISTICS OF THE NOT-SO-GREAT COI COI Relationships You Would Like To Have TrustworthyUnknown in the marketplace InfluentialQuestionable background Knows our target marketDirect competition Offers complimentary services Does not know our “firm story” Leaders in their field including Lawyers, CPA’s, Benefits / HR Consultants, and Professional Associations One way referrals or referrals that seek remuneration. Ideal Profile

Initiatives and Notes Initiatives for Improvement Shifting into an efficient growth mode post merger / acquisition requires leadership, direction, and a genuine commitment to our core competencies. It is imperative to have all parties acting in concert to be able to deliver on our stated objectives. Write down and agree on Growth initiatives in your firm and elect a “champion” for each initiative. Notes Improvement OpportunityWho Will Complete 1. Expand into new market(s)Sulu 2. Business development strategyJim 3. Referral development strategyMonty 4. Re-assess sales + referral processLeo 5. Re-branding the merged firm(s)Uhura

Staffing and Compensation Attracting, Retaining and Organizing Talent MODULE THREE

Organizational Chart Team View Draw your firm’s organizational chart. Label the positions.

Organizational Chart Entire Organization NOTE: As previously indicated, a key strategic priority will be to evaluate the structure of the organization in order to find efficiencies and the optimize performance of our firm. These charts simply reflect the organization as it stands today. Draw your firm’s organizational chart. Label the positions.

Compensation Philosophy We pride ourselves in finding and investing in the best of the best among the proven, premier professional talent in the marketplace. To attract, motivate and retain this level of talent we pay a premium in the market based on experience, specialized expertise, performance contribution to growth, etc. Internally, our compensation is designed to encourage collaboration and teamwork across the firms and is additive to the growth of the organization. To maintain our competitive advantage and to inspire future development of the organization, we as a firm are committed to evolving this philosophy to reflect changes in our firm, the competitive environment and our clients. We will communicate the key tenets of our compensation philosophy consistently to remain transparent, inclusive and to instill a sense of fairness to employees at all levels of the organization. What is your compensation philosophy?

Initiatives and Notes Initiatives for Improvement Trek will look to invest in the capabilities of our people and will use analytics to maximize how our employees actions support our business strategy. Our objective is to identify opportunities to optimize these key areas of focus to more effectively achieve our business goals. Write down and agree on Human Capital initiatives in your firm and elect a “champion” for each initiative. Notes Improvement OpportunityWho Will Complete 1. Talent evaluationJim/Leo 2. Hire for new officeSulu/Uhura 3. Define roles & responsibilitiesMonty/Sulu 4. Align new organization & cultureLeo/Jim 5. Compensation studySulu/Uhura Handouts in the Appendix Advisor HR Solutions Sample Compensation Profiles

Operations and Technology MODULE FOUR

Role of Operations Service and Deliverables Component-level Role Fee billing Client on boarding Reporting, client data & account management (day to day) Financial planning activities Custodian interface, portfolio accounting, data reconciliation, & performance reporting Compliance, Trading and rebalancing Money Movement (client requested distributions) Human Resources Information technology (IT) Financial PlanningInvestment Management Retirement Planning Portfolio analysis Tax Planning Portfolio design / monitoring Charitable Planning Trading & execution Trust & Estate Planning Tax analysis / sensitivity Data Analysis, Reporting Risk management

List and Documents Services Process – Financial Planning At Trek, we believe that every sound fiduciary relationship begins with a comprehensive financial plan. We consider the process foundational to all of the services we provide, and we engage every client with a financial plan. The process includes: discovery, analysis, plan development & implementation Purpose Trek applies a disciplined financial planning process to provide investors with a comprehensive, customized financial plan designed to help them achieve their financial goals. Budget See Page 20 Exhibit 1 with detailed budgetary information Resources Evaluate how well resource components are satisfied. AvailableScalable AttainableSustainable While the latest in financial planning software affords us the ability to offer a range of customization and scalability wen it comes to producing financial plans for clients, the FP process remains a labor intensive process Leveraging the resources we have at Trek, our approach to financial planning is sustainable for the foreseeable future

List and Documents Services Process – Tax & Estate Planning We work with individuals, families, entrepreneurs and businesses requiring sophisticated trust, tax, and estate planning. We are able to draw on the vast expertise and resources of our firm as needed to provide the best services to our clients. Purpose Trek has a comprehensive trust and estate program designed to help clients pass on their assets in a way that reflects their values. The basis goals of our trust and estate planning include helping protect your assets against the high costs of long-term care, minimizing delays associated with estate settlement, helping your family avoid any unnecessary estate tax liability and controlling the distribution of your assets. We also focus on stock and ownership interests Budget See Page 20 Exhibit 1 with detailed budgetary information Resources Evaluate how well resource components are satisfied. AvailableScalable AttainableSustainable Trust, estate, gift and income tax planning is a highly personalized practice at Trek. While our attorneys have abundant experience designing creative, effective plans focused on the goals and needs of our clients, this is truly a customized plan for each of our clients – most if not all of the work is hands on.

List and Documents Services Process – Investment Management Analyze current asset allocation, create new models, trade, rebalance and monitor Purpose Trek applies a disciplined financial planning process to assign risk and asset allocation models. That information is used to drive the Investment Management process. This process begins with analyzing the client’s current situation, identifying the ideal future state, and the steps necessary to implement. Once initial investments are complete, ongoing rebalancing and monitoring occurs. Budget See Page 20 Exhibit 1 with detailed budgetary information Resources Evaluate how well resource components are satisfied. AvailableScalable AttainableSustainable Portfolio Management software allows us the ability to quickly implement and rebalance client accounts. The time allocated and budgeted for in the financial planning process drives the models for each client. Most of the cost of this process is for the professional staff who monitors the portfolios. Partner time involvement is minimal.

Exhibit 1 – Expense Budget Model

Initiatives and Notes Initiatives for Improvement Write down and agree on Operations initiatives in your firm and elect a “champion” for each initiative. Notes Improvement OpportunityWho Will Complete 1. Technology/Ops evaluationJim 2. End to end client supportSulu 3. Overhaul P&P/riskMonty 4. Review investment management model & oversight Leo 5. Business continuity, disaster recovery & contingency planning Uhura Handouts in the Appendix Six Tell-Tale Signs That Your Business Processes May Need Attention

Financial Management Making the Numbers Work MODULE FIVE

Initiatives and Notes Initiatives for Improvement Write down and agree on Financial initiatives in your firm and elect a “champion” for each initiative. Notes Improvement OpportunityWho Will Complete 1. Review integrated P&LMonty/Jim 2. Determine 3-year capital investment planLeo/Monty 3. Assess client profitabilityUhura/Sulu 4. Determine current/future ownership situationJim/Monty Update firm valuationSulu/Leo Handouts in the Appendix Key Drivers of Firm Valuation