Have you ever wondered how your business is performing compared to your competitors?
- Are you spending too much on advertising?
- Are you paying too much rent?
- Are your staff costs too high?
- What is the industry standard for rent and wage costs?
- What is the average bottom line of your competitors?
Survival in today's business climate requires you to spend more time working ON your business rather than working IN the business. It's also important to know what is working in your business and what needs working on. This is where industry benchmarks can help you.
What is Benchmarking?
Benchmarking is a way of assessing your business' performance by comparison. Most businesses compare financial results with budgets and historical data, usually last month or last year. But all these comparisons are internal while benchmarking compares your business performance against others in your industry or related industries. They let you measure your business against the best, average and poorer performers.
Benchmarks also allow you to assess what your competitors are doing different which may help you to improve your own business practices and financial results.
- Sales and turnover
- Key performance indicators such as Gross Profit, Wages to Turnover and Net Profit
- Pricing structures and fees
- Number of customers
- Staff turnover
Benchmarking is of limited value unless you use the results to improve your business. Having identified the weaknesses in your business, the next step is to make changes to strengthen those areas.
If you're a committed and ambitious business owner looking to accelerate your business success we invite you to book a free, one hour introductory consultation to discuss your business needs and industry benchmarks. You'll get practical business, tax, marketing and financial advice designed to help you build your business and grow your wealth. To book a time, contact us today on (03) 9575 3800 or complete your details in the box at the top of this page.