Maybe it’s an inherent competitiveness or just the pursuit of improvement, but it’s commonplace for people to seek out benchmarks they can use to assess their relative position or performance. It interests people to know how they compare to their peers. Benchmarks have a place in business, too, and can be an invaluable instrument to help business owners succeed.
Think about running a business like having a horse running in a horse race. Knowing how a company ranks relative to others—before the starting bell, halfway through the race and right before its conclusion—empowers management to evaluate the company’s performance. Armed with that contextual information, they can potentially adapt strategy and affect the company’s final ranking (if there is a “final ranking” at all in business).
Where to begin?
The most difficult step in financial benchmarking is acquiring benchmarks to use. Part of the difficulty stems from ambiguity around the word “benchmark”, which could be interpreted asRead More »from Benchmark your small business and win the horse race