The answers can go a long way toward powering your SMSF business growth this year.
1. Should you re-engage all of your SMSF clients?
For your growth to soar, it is important to understand that you have the ‘right’ clients on board. What level of segmentation have you done amongst your SMSF client base? What do you understand about the different behavioural types of SMSF trustees and how that impacts on your service offering. Having the wrong mix of SMSF clients can be not only draining on your own time, but also on the profitability of your business. Now may be time to make some tough decisions – get your client mix right and watch your business grow!
2. Can you state your SMSF business strategy simply?
“We do SMSFs” is not a strategy. If you can’t articulate your approach to meet the specific needs of prospective SMSF clients, then don’t expect your staff or the market to understand what you stand for. SMSF specialisation is important, but not the panacea to your success. Be very clear in your describing your target audience and your value proposition – and be able to deliver ‘high value’ specialist advice. This will help to ensure that you are attracting the right type of SMSF clients to your business.
3. Is it time to review your SMSF business model?
With technology starting to create a big shift for the SMSF industry, it is making professionals have to think about how they deliver and charge for these SMSF services. Add to this licensing reforms and pricing pressures, now is a great time to sit down and map out what your SMSF business model might look like in 5 year’s time. For accountants, this may be limited licensing; for others, it may be a decision to specialise further within a specific segment (e.g. SMSF audit) to grow your business.
4. What 20 relationships do you need to nurture?
Your SMSF business’ success depends on powerful gatekeepers and influencers. Make a list of the people who you think will help you to double the size of your SMSF business – this could include influential clients, key business partners, such as service providers (e.g. lawyers, financial planners, accountants) and technology partners. Figure out how to cultivate and deepen these relationships before thinking about asking for any favours. Make sure that you can create an outcome in the relationship that will benefit the other person, not just focusing on how you can make it work for you (must be a two-way street).
5. What could disrupt your business within the SMSF industry?
Your ascent will stall if you get blindsided by a similar SMSF business that is 10 times better, faster and cheaper to run than yours. The SMSF administration space is a good example of the disruptive nature it is having on what was largely an accountant’s domain. Advancements in technology, integrations between cloud-based systems, a globalised workforce are all putting significant pressures on maintaining profit margins with your SMSF clients. Make sure that you continue to do your research in this ever-changing SMSF sector – trustee dynamics, technology, pricing and services, training and education and much more. With the pace of change accelerating, hanging with the ‘way things are done’ just doesn’t cut it.