1. Surety Performance SystemTM

2. May 25, 2015
Dear ________,
I am pleased to present your Surety Performance System™ report and plan.
Surety and bonding is the lifeblood of a contractor’s business. The Surety Performance System™ is a proven model to create a proactive structure around all the elements needed to provide a quality surety picture to maximize your work potential and improve a contractor’s business.
The model we use incorporates financial, key relationships, business operations, future goals, and innovative thinking to capture the entire picture of a contractor. Creating the complete picture allows for a healthy bong position to maximize the work potential and profitability for your business.
If anything changes during the next 12 months, please communicate to me as your Trusted Advisor. This is an active and organic plan. Therefore, working closely together to modify during the year will continue to maximize your potential.
Thank you for trusting us with your surety and bonding needs.
Sincerely,
Larry G. Linne

3. OUR PROCESS

4. PRIOR YEAR PERFORMANCE REVIEW
Results of Plan (Prior Year)
Working
Not Working

5. FINANCIAL ANALYSIS INSERT YOUR FINANCIAL INFORMATION HERE Revenue
Expenses
Profit

6. FINANCIAL ANALYSIS INSERT YOUR FINANCIAL INFORMATION HERE Assets
Short Term Assets $1,000,000
Other Assets $2,600,000
Total Assets $3,600,000
Liabilities
Short Term Liabilities $900,000
Long Term Liabilities $1,000,000
Total Liabilities $1,900,000
Owner Equity $1,700,000

7. FINANCIAL ANALYSIS Insert Additional or Other financial info HERE
*WIP Analysis
*Credit Analysis
*Cash Flow
*Etc.

8. FINANCIAL REVIEW & KEY BENCHMARKS
Industry Standard is a quick ratio of 2:1. Your current balance sheet debt ratios are acceptable to industry norms.
Cash management is not at standard for the industry. You are not collecting money according to contractual obligations. This is putting your company at risk.
Working capital at X% of cost to complete current work.
Discretionary overhead – How much work is needed to cover base overhead in the business.
Equipment analysis – Productivity and return on investment.

9. Profit Analysis

10. CURRENT WORK PERFORMANCE REVIEW
You currently have $12 million of work contracted. This amount of work will allow you to utilize your equipment and workforce efficiently.
Your are bidding $25m of work right now. Your bid success rate has been 10%. Therefore, you are looking at about $2.5m of potential future work. This is a low number and should be considered.
The High Plains job is behind schedule and could cause you cash flow problems if you are unable to get back on track. The weather has been a problem but you have a plan to get the work caught up through the summer.
Significant Job(s)

11. PROJECTED FUTURE WORK Type of Work Equipment Needs Capital Needs
Labor, PMs, or Special Skills Needed
Additional Notes and Comments

12. COMPANY GOALS
3 YEARS
1 YEAR
Additional Comments

13. BACK UP REVIEW Current Surety Back Up Position
Financial Need for Back Up
Market Need for Back Up
12 Month Strategy for Back Up
Additional Comments

14. MARKET ANALYSIS & DATA Surety Market Trends Local Market
National Market

15. TRUSTED ADVISOR EXPECTATIONS
We frequently see conflict on financial advice with Trusted Advisors of our contractor clients. This conflict is none productive if communicated in a vacuum. Interaction and mutual understanding of your goals and objectives is critical to a good financial plan. Your Trusted Advisors should be giving you advice prior to your business planning. We need to capture the advice pertaining to profit, growth, cash flow management, and any other financial advice. This will allow you to know where conflict exists so you can determine the best direction for your company.
Surety Expectations
CPA Expectations
Business Consulting Advisor/Recommendation
Bank Covenants / Expectations

16. PERFORMANCE PLAN

17. STRATEGIES AND RECOMMENDATIONS
The enhancement strategies were determined based on the facts and details of our analysis. We will visit these items throughout the year to support the execution.
Surety Contract
Credit Strategies
Financial Improvement Strategies
Other

18. ADDITIONAL RESOURCES Exit Planning/Business Continuity Hiring
Insurance Options
Risk Management Analysis
HR Review
Emerging Risk Industry Review
Supply Chain Review
Crisis Management

19. Agency puts information here.
Agency Information
Agency puts information here.