Northern Accountants

6. Compare

Benchmark your performance against the competition

Business benchmarking is one of the most widely used management tools available because it can help you to weigh up the competition in your industry.

Different types of benchmarking are used by businesses in order to:

  • Discover how much gross and net profit your competitors are really making
  • Discover how much gross and net profit your competitors are really making
  • Compare these figures to your own business, to assess its performance
  • Understand the specific areas where you outperform your competitors – such as ‘strengths’ which you can build on
  • Identify the specific areas that your competitors do better – such as ‘weaknesses’ which you can correct by learning from your competitors
  • Estimate how much extra profit the evidence suggests you can claw back when you perform as well as (or even better than) your rivals

By conducting a benchmarking analysis and comparing your business to others, you will be able to create an action plan and outline where to focus your efforts to reclaim missing profits.

Business benchmarking helps you and your business become more successful, profitable and valuable.

What is business benchmarking?

Benchmarking is the process of looking outside your business or organisation to study how others achieve high levels of performance by understanding the processes they use.

The main types of benchmarking are:

  • Strategic benchmarking
  • Process benchmarking
  • Functional benchmarking
  • Internal benchmarking
  • External benchmarking

How you can use business benchmarking

We will work alongside you to create a confidential benchmark report for your business, which will:

  • Compare your business to others in your industry, across 19 key performance measures
  • Present those comparisons both as numbers and colourful graphs
  • Explains what each of your 19 key performance measures means
  • Analyses where your strengths and weaknesses are compared to the rest of your industry
  • Suggests an initial action plan for improving your performance in each of those key areas
  • Calculates precisely how these improvements will generate extra sales, revenue and profits over the next 12 months

Having completed our swot analysis, your benchmarking report is presented to you in an executive summary, providing valuable insights into the progress and outlook of your business - and where you should be concentrating your efforts.

The length of the report is up to you – either opt for a standard eight to ten-page document, or choose a more comprehensive report that develops the points further.

Find out more

Do you want to learn where and how to make more money from your business? Get in touch with Northern Accountants in Leeds today – ring 01132 218 9552 or email savetax@northernaccountants.co.uk

I was amazed at the depth of comparison Northern Accountants were able to make against my competitors, in my area. It quantified the value of the improvements I could make and gave me focus for the year ahead.
Gavin Esberger GME Painting Contractors

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