Running a business without comparing it to other businesses is like an athlete tracking only his/her personal best—useful to some degree, but not very challenging. The benefit of benchmarking is that it measures performance and progress. Internal benchmarking allows you to monitor various operational aspects over a period of time. It’s a valuable exercise for tracking progress, unearthing problems and identifying trends. External benchmarking gives you a more holistic view by painting a picture of where you stand in relation to competitors and similar organisations.
Financial benchmarking not only serves as a performance metric, it shines a light into dark corners and magnifies small issues that could be improved upon or corrected before they snowball into big issues. When comparing a company’s financial performance with another company or an industry benchmark, it is important to consider context as objectively as possible before drawing any conclusions.
Through this coaching session, you will be able to:
- Compare and evaluate the implications of your company’s performance vs peers and industry
- Improve your business and financial strategies to deliver higher metrics over time
- Apply financial benchmarking in the areas of profitability, solvency, liquidity and efficiency of a business versus peers or industry average
- Strategic applications of financial benchmarking for SMEs
- Key pillars of financial benchmark
- Steps involved in financial benchmarking
- Benchmarking your company in each phase of your business life cycle