Benchmarking your business
Benchmarking your business is a way of measuring your performance against similar-sized businesses in your industry. It gives you essential information about how you can improve your business.
There are many ways to benchmark your business. You could:
- buy financial benchmarking data to
- compare your business's income, expenses and profitability against your industry averages
- examine the financial data of similar businesses
- contact your business or industry association for information about industry standards to measure your performance against
- research and compare your business's products, services and practices with your competitors.
Benchmarking helps you to:
- see where you can reduce costs and improve efficiency
- assess the productivity of your business compared to how many employees you have
- identify opportunities for improvement, new ideas and innovative practices
- highlight opportunities for making your business more competitive
- forecast the impact of any changes and see how to prepare for growth.
This guide will show you how to benchmark your business.