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Benchmarking beneficial for any Small Business

Jul 26, 2016   //   by admin   //   Insight Blog  //  Comments Off on Benchmarking beneficial for any Small Business

Why is Benchmarking beneficial for any small business?

Simply, we all need to know how we compare with our competitors. Are we spending too much on advertising? Paying too much for rent? Are my employee costs too high? What is the average bottom line of my competitors? To succeed in business you need to be able to compete in today’s ever changing climate. You need to spend more time working on your business rather than working in your business.

Benchmarking allows an assessment of your business performance compared with your industry average. A business can compare their performance from an internal perspective via their financial results from historical data, budgets, last month, last year etc. but to be able to compare with others in your industry or related industries from the best, average and poor performers is a powerful insight. You can assess what other businesses are doing differently, where they spend their dollars, their turnover, overheads and profitability. Key number indicators are also a good comparison to drive your business further.

Benchmarking is only useful if you use the results to improve your own business. Once weaknesses are identified in your business the next step is to ensure changes to strengthen your business.

At Insight Management Accountants we can provide a benchmarking report as part of your business analysis which can highlight areas of improvement to ensure you continue to grow your business. At Insight Management Accountants we are passionate about the success of small business. Contact us today to discuss how we can help grow your profits and the value of your business.

IMPORTANT DISCLAIMER:
This article does not constitute advice. This article is to be used as a general guide for our clients for their own private information. Clients should not act in isolation or solely on the basis of the material contained herein. We therefore recommend that formal advice for your situation be sought before taking action in any of these areas.

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