CATAPULTING YOUR BUSINESS FOR SMSF GROWTH

1. CATAPULTING YOUR BUSINESS FOR SMSF GROWTH Aaron Dunn The SMSF Academy

2. TOTAL ASSETS $2.23tn 2033 $505bn 2013 Nearly 4xlarger than next superannuation segment Source: Deloitte Dynamics of Superannuation Report 2013

3. DEMOGRAPHICS ARE CHANGING… 1:4 New entrants under age 45 What do you know about your existing SMSF client base? How does this demographic differ from your new SMSFs?

4. Almost half the assets in superannuation today are held by people who are going to retire in the next decade or so, or are already retired. Source: Deloitte Dynamics of Superannuation Report 2013

5. THE ‘SUPER’ WEALTH SHIFT RETIRED >65 Source: Deloitte Dynamics of Superannuation Report 2013

6. HOW DO WE COMMUNICATE WITH THE CHANGING DEMOGRAPHIC OF SMSF TRUSTEE?

7. INCREASING ROLE IN TECHNOLOGY AS AN ‘ENABLER’ FOR SMSF TRUSTEES ADOPTING TECHNOLOGY CAN CHANGE YOUR SMSF BUSINESS MODEL & RELATIONSHIPS

8. SOCIAL MEDIA IN AUSTRALIA 65% of all Australian’s use social media • 45% • of all Australian’s user access social media at least once per day • 42% access whilst watching TV • 20% • use social media to research products and services • 25% • of social media follow brands • 95% • of Australian’s social media users use Facebook • Australian social media users have on average • 258 • Fans or followers 67% of Australian social media users access social sites via a smartphone • Typical Australian Facebooker spends more than • 7hours • On site a week • 82% • of small business social • accounts are run by the owner or manager of the business • 60% • of large businesses update their social media every day • 30% • of Australian small businesses use social media • 51% • of large businesses measure their ROI on social media • 29% • of small business have no strategy to drive traffic to their social media presence • The average investment for a small business using social media is • 13.7% • of their marketing budget Source: YellowTM Social Media Report 2013 Sensis & Aust. Interactive Media Association (AIMA)

9. HOW PREPARED IS YOUR BUSINESS FOR DISRUPTION? In the next 2-3 years, one-thirdof professional services revenue will be impacted by advancements in technology Source: Deloitte Digital Disruption Report 2012

10. WHAT TO CONSIDER IN BUILDING YOUR SMSF BUSINESS MODEL?

11. Compliance overlay • What statutory obligations must be provided to ensure compliance with the Regulators? • Advice stage • What type and level of advice do your SMSF trustees require? What strategies are most relevant to add value based on their stage in life? • Lifecycle stage • Your clients are at what stage of the SMSF lifecycle? How does your offer fit the various life cycle stages to serve client needs? • Trustee behavioursWhat do you understand about the behavior of your clients & prospects? • Do they fit your value proposition?

12. Who is your target market within the SMSF sector? Mass market Niche market Segmented Diversified

13. ASK YOURSELF? Is your customer segment bytrustee behaviour? By age demographic? Is your customer segment the entire SMSF market? Do you have multiple service offerings? Do you have a niche within the SMSF sector (i.e. B2b)?

14. What are the bundle of products and services being offered that will create value? Who is your target market within the SMSF sector? Mass market Niche market Segmented Diversified QUANTITATIVE E.g. price or speed of service QUALITATIVE E.g. design, customer experience?

15. ADVICE DELIVERY COMPREHENSIVE ADVICE Limited licence focus for accountants? SCALED ADVICE GENERAL ADVICE FACTUAL INFORMATION

16. What are the bundle of products and services being offered that will create value? Who is your target market within the SMSF sector? Mass market Niche market Segmented Diversified QUANTITATIVE E.g. price or speed of service QUALITATIVE E.g. design, customer experience? How are you going to reach your SMSF clients & prospects?

17. ARE YOU LISTENING TO THE LATEST TRENDS IN SMSF? What channels do your clients want to be reached on? What channels work best? What channels are most cost-efficient? How do the channel(s) integrate with your existing client routines?

18. What are the most important things you must do to make your SMSF business model work? What are the bundle of products and services being offered that will create value? Who is your target market within the SMSF sector? What relationships, alliances do you require to optimize your business, reduce risk or acquire resources? What kind of relationships are you going to have with SMSF trustees? Mass market Niche market Segmented Diversified QUANTITATIVE E.g. price or speed of service QUALITATIVE E.g. design, customer experience? STRATEGIC Joint venture Buyer-supplier How are you going to reach your SMSF clients & prospects? What is needed to create the value that your business will offer? What services are provided and what revenue are you projecting? What are the most important costs inherent in your SMSF business model? What are customers willing to pay for your value proposition? Cost-driven model Value-driven model

19. WHAT DOES IT MEAN FOR YOU AS AN SPECIALIST SMSF ADVISOR?

20. Practice Management skills to enable an adviser to operate an efficient and effective SMSF business model that is profitable, and compliant including customer management, financial management, staff management, compliance management. Interpersonal Excellence skills that ensure the adviser is a strong communicator who can clearly articulate strategies and their benefits, concerns and risks. Must be an effective negotiator and influencer. Business Development skills that enable the adviser to articulate a value proposition (i.e. clearly address the client’s perspective of ‘what’s in it for me’ and that help the client see the long terms benefits of ongoing financial advice to enable financial advice to achieve your life goals), facilitate cross selling of services with key partners in your SMSF business model Specialist SMSF technical skills to provide legal, accurate and complete advice which meets the clients needs and is consistent with their level of financial literacy, aligned to their risk appetite People & Self-Development skills that equip advisers to manage their own staff effectively and provide the appropriate focus on their own personal development including staying abreast of industry developments and market trends, specialisations where appropriate Client Engagement skills that enable an adviser to build and maintain client relationships as a trusted adviser through preferred channels. Ability to deliver financial advice in a manner and at a level that is appropriate for the client’s needs

21. ‘TOPICAL’ AREAS TO ADD VALUE WITH SMSF CLIENTS

22. LIMITED RECOURSE BORROWING ARRANGEMENTS Lender options • Bank vs. related party • Terms incl. interest rate • Arm’s length dealings Risk Strategies • Structuring Insurance • Tax dependants? Key concepts • Single acquirable asset • Repairs, Maintaining and improving • Different asset Tax operation • CGT & Small Business concessions • GST issues SIS operation • Related party acquisitions • Arm’s length dealing • In-house assets • Sample text • This is a sample text • Insert your text here

23. SMSF PENSION PLAN Transition to Retirement • Tax optimization with salary sacrifice and pension levels • Reboots and other adjustments Estate considerations • Recontribution strategies • Anti-detriment payments • Death Benefit Nominations Structuring income streams • Multiple interests, proportioning rule • Reversionary • Insurance considerations Tax & SIS operation • Preservation • Treatment of benefit payments • Exempt current pension income Investment strategy • Asset segregation • Asset mix • Sample text • This is a sample text • Insert your text here

24. 10 PREDICTIONS FOR THE FUTURE OF SERVICE PROVIDERS IN THE SMSF INDUSTRY

25. 10 PREDICTIONS FOR THE SMSF INDUSTRY • Strategic advice will dominate the SMSF advice landscape – limited advice to significantly practice revenues • Cloud computing will be utilised for more than 90% of all advice, administration and auditor services • SMSF compliance services will be largely commoditised with pricing dropping by more than 30% • Institutions will continue strategy to ‘industrialise’ SMSF sector • Specialist SMSF service providers will be establishing more than 70% of all new funds each year

26. 10 PREDICTIONS FOR THE SMSF INDUSTRY Specialist coaches will become a common feature of the advice framework dealing with self-directed trustees on a needs basis Offshore labour for advice, administration and audit will become common to retain profit margins Self-directed tools and communities to drive sector growth Pure compliance-based SMSF administration businesses will be rare, with most providing value-added services (e.g. advice) to support falling per-job revenues Time-based billing for SMSF compliance will be non-existent, with package-based fees with fixed pricing

27. THREE KEY TAKE-AWAYS TODAY… The dynamics & demographics of the SMSF sector are changing at a rapid rate – how are you adapting to this change and the needs of trustees? Have you considered what your SMSF business model is going to look like into the future to capitalise on the growing number of SMSF trustees? Build specialist knowledge to unlock key SMSF strategies for your clients and target demographic

28. Follow Aaron’s blog Aaron Dunn The SMSF Academy www.thesmsfacademy.com.au SMSF Dunn Right, http://thedunnthing.com Follow, Like or connect with Aaron and the SMSF Academy: FOLLOW, LIKE OR CONNECT WITH US #smsfadvice