Benchmarking

H ave you ever wondered how your business is performing compared to your competitors? Benchmarking is a way of assessing your business' performance by comparison with your industry peers. For example:

• Are you spending too much on advertising?
• Are you paying too much rent?
• Are your staff costs too high?
• How does your profitability compare?

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 areas need 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. On the other hand benchmarking compares your business performance with others in your industry or related industries, so that you can measure yourself against the best, average and poorer performers.
Benchmarking also allows you to assess where other businesses are doing things differently which may help you to improve your own business practices and results. We generate comparative reports and graphs that are easy to understand and we spend time with you making sure that you understand your industry averages and analysis.

Benchmarking Characteristics

• sales and turnover
• profitability
• overheads
• 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 where there are weaknesses in your business, the next step is to make changes to strengthen those areas.

Here at Freedom Accounting Group,  we primarily work with ambitious business owners who are generally part of a family group. They recognise the importance of marketing and are willing to invest in their business. They are prepared to work hard, but they also want to work smarter.

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 or farm needs. 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 (02) 6021 0335 or complete your details in the box at the top of this page.

Freedom Accounting Group - Unlock Your Potential