Entrepreneurs Brief Guide
“How to Benchmark Your Business”
Dr Jim Porter
Benchmarking can be defined as the process of comparing your business performance with that of the industry average. It is of statistical importance and is used to highlight the gaps in your business or the areas that need improvement in order to achieve business growth. But benchmarking is only a tool and does not provide any solutions on how to bridge the gap. Usually, the business statistics are compared with those which are the best in your field.
In 30 minutes, learn how to:
Establish what parameters to benchmark
Set a plan for benchmarking
Gather information
Carry out a benchmark exercise
Copyright
How to Benchmark Your Business
Dr Jim Porter
.Revision: SW2.024.001
Copyright © 2011 – All Rights Reserved.
Smashwords Edition
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ISBN:
978-1-4657-9435-2
Publisher: Smashwords, Inc.
Benchmarking can be defined as the process of comparing your business performance with that of the industry average. It is of statistical importance and is used to highlight the gaps in your business or the areas that need improvement in order to achieve business growth. But benchmarking is only a tool and does not provide any solutions on how to bridge the gap. Usually, the business statistics are compared with those which are the best in your field.
Benchmarking schemes and tools allow you to break costs into different categories and compare averages. You can then use this data to make annual costs comparisons. This will help you to understand your business cost structure and find out:
Which business segments are the most profitable
Which could benefit from being changed
How they compare to other similar businesses
Benchmarking can highlight the strengths and weaknesses of your business. You can use your findings or discuss them with others to find out which of your working practices can be improved. You can then use these comparisons to change your business strategy and how your business operates, for example by developing new products and services to supply different markets
You can also use benchmarking to improve the quality of your products and working practices. You should see an increase in financial returns as a result.
What to compare
Benchmarking shows how you have been performing and compares your performance with the industry average. The basis of the comparison could be: