Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 87

Making your SMSF business a saleable practice

With the advent of new licencing rules and the focus on the rapid growth of SMSF’s, many accounting and planning firms are considering what their involvement should be in the SMSF space. Making your business more efficient and perhaps saleable does not necessarily mean you want to, or will, sell it. The area is rapidly changing and staying still and doing nothing may be detrimental to the business value.

Where are you in the value chain?

Before starting to make changes, the first step is to consider where in the SMSF value chain you are, and where you want to be. To me there are three core parts of the value chain for SMSF businesses (ignoring the investing and funds management components):

1. Advice (financial, tax and structural) and information

Do you want your business to offer advice and if so to what extent and what type, who will be your clients and what will they pay for it?

2. Administrative process

This is not tax work, it is the process of keeping details on all transactions as they occur, managing the paperwork, producing minutes, monitoring investment strategies, receiving pension payment contributions as well as receipt of income that is due to the fund etc etc. This includes assisting the trustees with adhering to the SIS Act regulations and rules, and ensuring deeds are updated and the fund complies.

3. Taxation and trustee services

This is the standard BAS and tax work and other ancillary services necessary for the ATO lodgement requirements, plus trustee responsibilities including compliance.

Obviously there are significantly more items in each of these areas, but the key issue is to decide where you want to be in the chain and be true to it and build the practice solution around it. Not being true to it is the biggest mistake that affects the profit of your business.

Understand what ‘best practice’ is and make that your goal, even if you wish to be in the entire value chain. Determine what works for your business and ask how you will profit from the chosen position. Then build the practices, processes and people around the solution you want, not the other way around.

Let your clients know. If you are a trustee, you should ask your provider what they specialise in and what they don’t. Presumption often leads to disappointment.

Some simple steps to take

There are some actions to consider to position the business appropriately:

  • identify the part or parts of the value chain you want to be in
  • write a divisional plan for all sections of your business
  • determine what success means
  • work out your marketing plan
  • decide what a ‘client’ is and how many you need
  • determine how you are going to sell and then deliver the service to clients
  • work out the billing process and the collection of revenues
  • calculate the profit you are targeting
  • report against all of the above regularly.

Is it better to outsource or even sell?

Once you have determined what you are involved in, you should ensure you have referral or outsource partners to deliver the areas you are not involved in. Even if you are not the supplier, every part of the value chain is important to the SMSF trustee.

Outsourcing is not a dirty word. If you want to be in a part of the value chain but do not want to build the internal capability then many firms will white label their service for you. Outsourcing should be an arrangement where the firm delivers to you what you need to deliver to your clients – not the other way around. If an outsourcing arrangements means you end up doing all their work, then you did not get the framework right when contracting the outsourcer. It should be your service, not theirs, so set the parameters to ensure that your business is not burdened by outsourcing.

If you do want to sell your business or a part of your business, put yourself in the shoes of an acquirer and relook at it. Acquirers will pay the most for quality, organised, value chain-orientated businesses. Selling does not necessarily mean you want to get out of this area of business. It may just mean the part of the value chain that you prefer not to do can be sold which frees up cash for other things.

Take a good look at your business and be objective about the skills of your people and what drives you and them. Focussing on the things you don’t do well often means you are taking time away from the things you do do well. Better to concentrate your energies on what you are best at.

 

Andrew Bloore is Chief Executive Officer at SuperIQ, a leading SMSF administration provider. This article is for general information purposes and does not constitute personal financial advice.

 


 

Leave a Comment:

RELATED ARTICLES

SMSFs can lend to some relatives

banner

Most viewed in recent weeks

Raising the GST to 15%

Treasurer Jim Chalmers aims to tackle tax reform but faces challenges. Previous reviews struggled due to political sensitivities, highlighting the need for comprehensive and politically feasible change.

7 examples of how the new super tax will be calculated

You've no doubt heard about Division 296. These case studies show what people at various levels above the $3 million threshold might need to pay the ATO, with examples ranging from under $500 to more than $35,000.

The revolt against Baby Boomer wealth

The $3m super tax could be put down to the Government needing money and the wealthy being easy targets. It’s deeper than that though and this looks at the factors behind the policy and why more taxes on the wealthy are coming.

Meg on SMSFs: Withdrawing assets ahead of the $3m super tax

The super tax has caused an almighty scuffle, but for SMSFs impacted by the proposed tax, a big question remains: what should they do now? Here are ideas for those wanting to withdraw money from their SMSF.

Are franking credits hurting Australia’s economy?

Business investment and per capita GDP have languished over the past decade and the Labor Government is conducting inquiries to find out why. Franking credits should be part of the debate about our stalling economy.

Here's what should replace the $3 million super tax

With Div. 296 looming, is there a smarter way to tax superannuation? This proposes a fairer, income-linked alternative that respects compounding, ensures predictability, and avoids taxing unrealised capital gains. 

Latest Updates

Investment strategies

9 winning investment strategies

There are many ways to invest in stocks, but some strategies are more effective than others. Here are nine tried and tested investment approaches - choosing one of these can improve your chances of reaching your financial goals.

Planning

Super, death and taxes – time to rethink your estate plans?

The $3 million super tax has many rethinking their super strategies, especially issues of wealth transfer on death. This reviews the taxes on super benefits and offers investment alternatives.

Taxation

Raising the GST to 15%

Treasurer Jim Chalmers aims to tackle tax reform but faces challenges. Previous reviews struggled due to political sensitivities, highlighting the need for comprehensive and politically feasible change.

Shares

The megatrend you simply cannot ignore

Markets are reassessing the impact of AI, with initial euphoria giving way to growing scepticism. This shift is evident in the performance of ASX-listed AI beneficiaries, creating potential opportunities.

Gold

Is this the real reason for gold's surge past $3,000?

Concerns over the US fiscal position seem to have overtaken geopolitics and interest rates as the biggest tailwind for gold prices. Even if a debt crisis doesn't seem likely, there could be more support on the way.

Exchange traded products

Is now the time to invest in small caps?

With further RBA rate cuts forecast this year, small caps may be key beneficiaries. There are quality small cap LICs and LITs trading at discounts to net assets, offering opportunities for astute investors.

Strategy

Welcome to the grey war

Forget speculation about a future US-China conflict - it's already happening. Through cyberwarfare and propaganda, China is waging a grey war designed to weaken democracies without firing a single shot.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.