Trek EnterprisesTEAM WORKBOOKDecisions and Notes for Modules 1 – 5

BSMART Business Simulation Management and Relationship Training

Vision, Mission & StrategyThe 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

Strengths Weaknesses

• 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

Opportunities Threats

• 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

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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 Opportunity Who Will Complete

1. Align new organization + culture Sulu/Uhura

2. 3-year capital investment plan Leo/Monty

3. Talent & role evaluation Jim/Leo

4. Technology & Operations Consolidation Jim/Monty

5. Expansion into new regional market(s) Sulu

GrowthBuilding the Firm

MODULE TWO

CHARACTERISTICS OF THE IDEAL CLIENT

CHARACTERISTICS OF THE NOT-SO-GREAT REFERRAL

Business YouWould LikeTo Win

HNW Women in transitionWomen facing divorce or death of a loved one

Not interested in planning or clients seeking Investment management services only

High Income familiesMid 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 OFTHE NOT-SO-GREAT COI

COI RelationshipsYou Would Like To Have

Trustworthy Unknown in the marketplace

Influential Questionable background

Knows our target market Direct 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 Opportunity Who Will Complete

1. Expand into new market(s) Sulu

2. Business development strategy Jim

3. Referral development strategy Monty

4. Re-assess sales + referral process Leo

5. Re-branding the merged firm(s) Uhura

Staffing and CompensationAttracting, Retaining and Organizing Talent

MODULE THREE

Organizational ChartTeam View

Draw your firm’s organizational chart. Label the positions.

Organizational ChartEntire 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 Opportunity Who Will Complete

1. Talent evaluation Jim/Leo

2. Hire for new office Sulu/Uhura

3. Define roles & responsibilities Monty/Sulu

4. Align new organization & culture Leo/Jim

5. Compensation study Sulu/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 Planning Investment 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 PlanningAt 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.

BudgetSee Page 20 Exhibit 1 with detailed budgetary information

Resources Evaluate how well resource components are satisfied.

Available Scalable

Attainable Sustainable

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 processLeveraging the resources we have at Trek, our approach to financial planning is sustainable for the foreseeable future

List and Documents Services

Process – Tax & Estate PlanningWe 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.

PurposeTrek 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

BudgetSee Page 20 Exhibit 1 with detailed budgetary information

Resources Evaluate how well resource components are satisfied.

Available Scalable

Attainable Sustainable

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 ManagementAnalyze 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.

Available Scalable

Attainable Sustainable

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

Trek Enterprise Projected Expense Budget Financial Planning

Tax & Estate Planning

Investment Management

Projected Client Engagements 1,047 524 1047Partner Compensation 1,535.82$ 1,534.35$ 1,535.82$ Non-Owner Advisor/Portfolio Manager Compensation 546.13$ 545.61$ 546.13$ Other Direct Expense 61.78$ 61.72$ 61.78$

Total Direct Expense/Per Client 2,143.73$ 2,141.68$ 2,143.73$

Total Direct Expense BUDGET 2,244,484$ 1,122,242$ 2,244,484$ 5,611,210$

Operations Staff Compensation 176.11$ 175.95$ 176.11$ Administrative Staff Compensation 416.22$ 415.82$ 416.22$ Rent 205.18$ 204.98$ 205.18$ Technology 199.32$ 199.13$ 199.32$ Office Expenses 105.52$ 105.42$ 105.52$ Marketing and Sales Expense 146.56$ 146.42$ 146.56$ Other Overhead 381.04$ 380.68$ 381.04$

Total Overhead/Per Client 1,629.95$ 1,628.39$ 1,629.95$

Total Overhead BUDGET 1,706,554$ 853,277$ 1,706,554$ 4,266,384$ Total PROJECTED EXPENSE BUDGET 3,951,038$ 1,975,519$ 3,951,038$ 9,877,594$

Assumptions:Tota l Cl ient Engagements ca lculated averaging a l l new & existi ing relati onships"Engagement" refers to acti vities required to ana lyzed, des ign, implement and/or monitor/mainta in FP, EP & IMCons is tent with our growth projections , we assume a 15% increase in cl ient engagements , year over year: YR1 910, YR2 1047Assumes a 5% increase in a l l overhead expense (cons is tent with his torica l data)Basel ine cl ient service model includes FP & IM for a l l cl ients . Approximately 50% of cl ients uti l i ze EPTota l engagement uni ts (2618), engagement uni ts per FP, EP (1047 each), engagement uni ts per EP (524)

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 Opportunity Who Will Complete

1. Technology/Ops evaluation Jim

2. End to end client support Sulu

3. Overhaul P&P/risk Monty

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 ManagementMaking 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 Opportunity Who Will Complete

1. Review integrated P&L Monty/Jim

2. Determine 3-year capital investment plan Leo/Monty

3. Assess client profitability Uhura/Sulu

4. Determine current/future ownership situation Jim/Monty + 2

5. Update firm valuation Sulu/Leo

Handouts in the Appendix

• Key Drivers of Firm Valuation