Benchmarking: A Key Health Indicator for Your Business
July 15, 2011
Terry Peltz, Director
Performance Advisors LLc
Benchmarking is one of those great business buzzwords. But it’s a buzzword for good reason - it's very useful. Benchmarking is a “hot” management technique that survived the boom of the 1990′s. It is also the best way to uncover performance gaps in an organization. By comparing your business to similar businesses in your industry, you can easily assess the health of your organization.
When you benchmark your performance against your competitors it helps you and your managers remained focused on your markets and takes the guesswork out of competitive analysis. It also provides a yardstick for improving competitiveness, because it helps you compare your business with your competition to see how its profitability can be improved by taking very specific measures.
However, most businesses are uncertain how to obtain the information they need to benchmark. Performance Advisors LLC offers four methods for gathering benchmarking data.
1. Ask other business owners. You can form strategic alliances with businesses similar to your own, and those relationships could include the exchange of key financial data. Finding businesses that don’t directly compete with yours is crucial in negotiating a solid benchmarking relationship.
2. Use industry directories. In some industries, there are readily available reports or directories that list revenues and growth figures for many companies in the sector.
3. Ask an industry association. Some industry associations ask members to participate in anonymous polls in which they share financial information. Although you won’t know who contributed the data, it does provide a general overview of how typical businesses in your industry are faring.
4. Buy or find market research. By paying a fee, you can purchase market research for your specific industry.
Allow Performance Advisors LLC to do Your Benchmarking for You
Performance Advisors LLC is in the business of seeing businesses like yours succeed. If you’re still worried about compiling a complete and informative benchmark for your business, allow Performance Advisors LLC to do it for you. How does it work? From several of your company’s key business metrics, we will run a full analysis of the financial health of your organization. This includes a follow-up counseling session with one of our profitability coaches to help get your business on the fast track to increased profitability.
Performance Advisors LLC’s reports will interpret and explain your industry benchmarks and provide the following customized features:
- Executive summary highlights strengths
- Weaknesses and key points
- Industry percentile rankings shown for 20 major financial ratios
- Interpretation of variances from industry norms
- Bold graphs that show comparisons
- Profit improvement “what if” financial capabilities
- “Discussion Ideas” section that provides a springboard for action
Clickhere to view sample #1 or here for sample #2 of an assessment performed by Performance Advisors LLC
You owe it to your business to get a complete financial picture of how your business compares to others in the industry. Add to the detailed analysis provided in your business analysis an hour of business consulting, and you have an amazingly great value. Contact Performance Advisors LLC at 1-888-629-0605 or 1-602-579-5725 and receive the key performance indicators for your business free of charge! It’s time to assess your business’s health; it may not be what the doctor ordered, but it sure will give your business a longer, more vibrant life.
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