Why should I benchmark?
Questions business owners often ask us
Profitability measures
- How does my gross profit compare to the industry?
- Are my wages higher or lower than others in our segment?
- Are my premises costs similar to the benchmark?
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Return on investment metrics
- We believe we are receiving a good return on our investment in the business. However, is that higher or lower than others in our industry?
- Do we have the right capital structure?
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Sales trends
- The business sales seem to be in decline. Is this consistent with the market as a whole?
- How well are we converting sales into bottom line profits?
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Cash flow and working capital analysis
- We appear to be making a profit. Why isn’t it reflected in our cash levels?
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We often find business owners prefer to review results graphically and at a high level due to time constraints running a business. We can design a suite of KPI graphs, including industry benchmarks where available to assist your business planning.
If you would like to have a conversation about benchmarking your business contact Steve Cammish or Jonathan Wilgermein.
