When someone asks: how business? Do you really know what to say?
If you're like many business owners, you blur with the feeling that your business can roll with their catch. But that nagging feeling in the back of your mind honestly, you do not know for sure if you are falling behind or ahead of the competition is dragging.
Know that you can tell if your business is really thriving? Benchmark.
In your industry to compare their business to other businesses. Small business research firm Sageworks notes as a recent article, you gross revenue, net profit, profit, revenue growth, liquidity and key metrics including turnover ratio, by comparing the health of your company can better evaluate .
For example, if you're profit margin is 5 percent but the industry norm of 8 per cent, that is a big red flag. Profits will be reduced - while competitors slowly starved of cash and will be growing your business you outshining. On the other hand, if you collect accounts receivable faster than ideal, you better cash flow from operations will be similar.
Benchmark because many business owners think they need to compare business metrics data they had their hands can not get it is not. But much to our industry about ways to get some intelligence - and some of them do not cost much. You can scare up a benchmarking data is better than none, because it at least you a starting point to compare their performance does.
Here are four ways you can get your business data for benchmarking are:
Ask other business owners. Form alliances with businesses similar to yours, but based in other cities, so you do not compete directly. Agree to share financial and bingo - you've got some fresh data to compare.
Use industry directories. In some industries, there are readily available in reports or directory listing income and growth figures for many companies.
Ask an industry association. Industry groups often polls its membership of business owners who anonymously disclose their financial information practices. Although not tell you how they are faring individual competitors, industry figures often how good your industry is a typical business data than do the general.
To buy or market research to find. If you are willing to spend a little, the market research is available on every industry segment imaginable. Never ever get enough information can be affordably. Some important statistics in a press release about the study may begin to give you some benchmark figures can. Or you go all out to hire a firm can custom research.
If you're like many business owners, you blur with the feeling that your business can roll with their catch. But that nagging feeling in the back of your mind honestly, you do not know for sure if you are falling behind or ahead of the competition is dragging.
Know that you can tell if your business is really thriving? Benchmark.
In your industry to compare their business to other businesses. Small business research firm Sageworks notes as a recent article, you gross revenue, net profit, profit, revenue growth, liquidity and key metrics including turnover ratio, by comparing the health of your company can better evaluate .
For example, if you're profit margin is 5 percent but the industry norm of 8 per cent, that is a big red flag. Profits will be reduced - while competitors slowly starved of cash and will be growing your business you outshining. On the other hand, if you collect accounts receivable faster than ideal, you better cash flow from operations will be similar.
Benchmark because many business owners think they need to compare business metrics data they had their hands can not get it is not. But much to our industry about ways to get some intelligence - and some of them do not cost much. You can scare up a benchmarking data is better than none, because it at least you a starting point to compare their performance does.
Here are four ways you can get your business data for benchmarking are:
Ask other business owners. Form alliances with businesses similar to yours, but based in other cities, so you do not compete directly. Agree to share financial and bingo - you've got some fresh data to compare.
Use industry directories. In some industries, there are readily available in reports or directory listing income and growth figures for many companies.
Ask an industry association. Industry groups often polls its membership of business owners who anonymously disclose their financial information practices. Although not tell you how they are faring individual competitors, industry figures often how good your industry is a typical business data than do the general.
To buy or market research to find. If you are willing to spend a little, the market research is available on every industry segment imaginable. Never ever get enough information can be affordably. Some important statistics in a press release about the study may begin to give you some benchmark figures can. Or you go all out to hire a firm can custom research.
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1 comments:
Nice article and thanks for this nice info
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