How does your business compare to others in your industry?

As business owners you may compare your business results to how you performed historically. You may also compare your results to your forecast to see how you are tracking against it.
However, do you compare your business results against others in your industry?

The answer we often hear is ‘very seldomly’ or ‘not at all’.

BDO’s benchmarking advisory service can help you.

How does benchmarking work?

BDO has access to a range of business data that can be used to benchmark your business against the industry in critical business areas, including;

Profitability measures
Return on investment metrics
Sales trends
Cash flow and working capital analysis

Why should I benchmark?

Questions business owners often ask us:

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?

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?

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?

We appear to be making a profit. Why isn’t it reflected in our cash levels?

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.

Business Benchmarking

How does your business compare to others in your industry?

How does benchmarking work?

Why should I benchmark?

Profitability measures

Return on investment metrics

Sales trends

Cash flow and working capital analysis

Contact our team