1. How to Build a Growth Plan (Expansion vs Expertise) Gabe Jarnot, Northland Capital Chris Enbom, Allegiant Partners Jennifer Finken, NCMIC

2. Introductions

3. Today’s Goal Identify methods & tools that you can use to help your business grow 1. Broader 2. Deeper 3. Smarter

4. For Starters – How we define Expansion vs Expertise – Maybe not a “versus” perspective, but more... How, when, who, where perspective

5. Before you Grow, You Need to Know What is your business model? Are you clear on what your model REALLY is? – At a basic level, direct vs vendor

6. In Thousands 2014 Small Ticket Portion of SEFA - ELFA BanksCaptivesIndependentsTotal Vendor Programs $6,508,201$35,781$2,027,736$8,571,718 Captive Programs $0$14,213,742$0$14,213,742 Captive and Vendor Programs $6,508,201$14,249,523$2,027,736$22,785,460 Originated Directly $755,874$17,178$683,911$1,456,963 Total Originated $7,264,075$14,266,701$2,711,647$24,242,423 30%59%11% Less than 10% direct

7. Basic Market/SWOT Analysis Before looking at any growth plan, we need basic SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis/Market Data What sort of market penetration do you have? Why do your customers use your services? How do your rates and levels of service compare to competition? Strengths, Weaknesses, Basic Market Data

8. Bad Credit Great Credit Big Vendor, Lots of Financing Options Complicated Story Used Asset Small Vendor, No Financing Good Credit Great Asset Private Party Sale Unpopular Asset/Industry Spectrum of Customer Stories High Rate Low Rate Big Volume Capacity Sell on Speed Willing to Spend Time on Credits Ability to Take High Risk Deep Understanding of Industry and Customer Profiles Very Efficient Collections Capability Unpopular Asset/Industry Spectrum of Funding Sources Vendor Direct Willing to Pay for Other Bundled Services

9. Working with Limited Resources 1. Whether larger or smaller companies, we are all constrained by resources 2. Understanding how to analyze growth within an existing niche versus starting an initiative in a new niche or area is difficult and complex

10. “How and Where do I look to grow?”

11. Resources to Consider

12. Acquire New Clients Base Retention Market Positioning Adjacent Markets Grow Share of Wallet Growth Initiatives Growth Initiatives EXPANSION EXPERTISE Revenue Current Year Goal 1-3 Years Closing Ratio Examples - CL Conversion Vendor Market Share Increase Average Ticket Examples - New Hires New Accounts/Sources Examples - Identified New Opportunities Examples - JV Partnerships and/or Acquisitions

13. Two Important Points 1. Each source of revenue requires a focus on customer value and go-to-market capabilities 2. Each source of revenue requires different skills and priorities

14. Which option(s) do you select? Option (Give it a Name) Risk is Low (Yes or No) Mission Synergy (HML) Level of Ease (HML) Market Advantage (HML) 1.Closing Ratio 2. CL Conversion 3. Vendor Share 4. Average Ticket 5. New Hires 6. New Accts/Sources 7. New Opportunity 8. New Opportunity 9. Partnerships/JV’s 10. Acquisitions

15. Choose your Growth Strategy & Describe your Vision in each Window 2017 2016 2015

16. Finalize Priorities for next year Define Tactical Action Steps Determine the one step that needs action now. What you do in the next 90 days following this exercise will determine where you will be three years from now

17. Developing a Growth Plan? Know Who you Are Know your value proposition & go-to-market capabilities Develop a series of Growth Initiatives Filter and Prioritize Define your Vision/Strategy next 3 Years Set Goals & Tactics

18. Questions?