Have you ever benchmarked your business against other similar businesses? Lots of us do informational benchmarking by talking to other business people and similar businesses that we meet at trainings or conferences. But how many of us do it formally by matching our key figures with other businesses?
We became a benchmarking convert after experiencing the benefits it brought to our business. Now we undertake formal benchmarking every year.
For our clients, we contribute to and compare benchmarks using the Waikato New Zealand Business Benchmarks. These are grouped by industry, so we can benchmark most businesses.
Benchmarking can help us answer questions like:
- Are you spending enough on advertising?
- Are your staff costs too high?
- Is your Grow Profit percentage (a result of markup) adequate?
It will usually highlight a couple of areas where improvements can be made. Armed with this information, we'll work with you to develop an action plan to improve your profitability.