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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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.