While you are developing your business, it is important to keep an eye on your market position. A great way to do this is via benchmarking – measuring your business performance against that of your competitors.
- Establishes industry standards
- Identifies strategies to achieve the best possible relationships with your customers and gain the best possible results on your bottom line
- Observes how your competitors achieve these standards and utilise these strategies
- Applies this knowledge to achieve and maintain these results in your business
Benchmarking is about acknowledging your strengths and weaknesses, and identifying areas of opportunity and improvement – based on your competitors’ performance in the marketplace.
It is imperative to always be aware of your competitor’s activities and their successes. A thorough and honest benchmarking review can help you in your business planning and cash flow management.
Benefits of benchmarking include: