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Would you like to know how your business is doing compared to other businesses in the same trade? If the answer is yes, then I would advise you to carry out some financial benchmarking.
In simple terms, financial benchmarking is the process of comparing your own business financial performance metrics to that of your competitors, or the best in the industry as a whole, in an effort to assess your overall business competitiveness and productivity.
The ability to benchmark the financial performance of your business is particularly important, in the continuing tough economic climate, in order to ensure that your business has that competitive advantage.
If you find that your business is operating under par compared to others, for example you are not achieving the level of gross margin your competitors are, then clearly this is an indicator that you need to take steps to make your processes better, quicker and cheaper in the future to ensure your business attains tip top health.
So how do you go about finding these useful industry and competitor financial comparisons?
One way is to subscribe to trade information available from trade sector magazines and trade groups relevant to your business. The other way is to use benchmarking software, such as the new Profitcents tool Springfords have invested in to help analyse our client’s financial performance. So now, if you are in the restaurant business for example, it means we can answer the age old question – “How do you think I’m doing compared to other restaurants?” – as we can now provide you with a useful report comparing the metrics of your business to others in the same trade.
If you would like more information on this new software then please contact Carol Wright on email@example.com