Did you know we provide many extra services to our clients? One of these is Benchmarking Reports which can be very insightful!
Benchmarking can be a valuable exercise to run on your business, as it not only shows you how your business is performing against other similar businesses in your industry, but it will also highlight key areas in your business that are underperforming and need attention. Some of the main areas to focus on would be sales/turnover, direct costs, rent, wages and net profit. The ATO provides some basic benchmark figures for roughly 100 different industry types, which you can find at www.ato.gov.au/business/small-business-benchmarks. Whilst the information can be helpful, it is very basic and doesn’t provide enough information to make any decisions of value to your business.
Using much more comprehensive benchmarking reports, we can input your business data and directly compare it to the benchmarks in your industry. Based on averages for the industry, it will show the turnover, direct costs, gross profit, all different categories of operating expenses (eg. advertising, depreciation, rent, vehicle expenses, wages/salary etc.) and net profit before owners’ salary. All costs are shown as a percentage of the turnover, so these percentages are applied to your turnover to then be compared to your figures. If anything is significantly higher or lower, then it may be an area that needs to be focused on.
After comparing your figures using the benchmarking report, we will be able to work with you to determine the main areas of your business that need your focus and provide guidance on how to improve them. As your business changes we can continue to compare your business to the industry benchmark to continually find areas to improve and outperform your industry.
Ask us how we can create a benchmarking report for your business! Book in for a chat and have one of our team go over the report with you.