Small Business Benchmarking: Because We're Not Satisfied with Just Being Small
Are you running a small business and feeling a little, well, small?
Don't worry, you're not alone. In fact, of the 2.6 million businesses in Australia, the majority (98 %) are small and medium enterprises. But just because you're small doesn't mean you can't think big. And one of the best ways to think big is by benchmarking your business performance.
But what is benchmarking? Simply put, it's the process of comparing your business's performance against current industry standards or best practices. Think of it like a personal trainer for your business. Just like a trainer helps you measure your progress and set goals, benchmarking helps you measure your business's progress and set goals for improvement.
Now, I know what you're thinking: "But wait, isn't benchmarking just for big businesses? I'm just a little fish in a big sea of competition." Well, that's where you're wrong. Benchmarking is just as important for small businesses as it is for big businesses. In fact, it's even more important for small businesses because every little bit of improvement can make a big difference in your bottom line and will set the right patch for you as you grow.
So, why should you benchmark your small business?
First of all, benchmarking can help you identify areas where you're doing well and also where you need improvement. Just like a personal trainer can tell you that you're killing it in the leg press but need to work on your bicep curls, benchmarking can tell you that you're killing it in sales but need to work on your staffing spend, it’s way over the top.
Second, benchmarking can help you set realistic and achievable goals for your business. Just like a personal trainer can help you set a goal to deadlift 300 pounds, benchmarking can help you set a goal to increase your team productivity by 5%.
Third, benchmarking can help you stay competitive. Just like a personal trainer helps you keep up with the other gym-goers, benchmarking can help you keep up with your peers in your industry.
And last but not least, benchmarking can be a lot of fun. Just like a personal trainer can make working out fun, benchmarking can be a fun and exciting way to improve your business. Plus, you get to use all sorts of fancy charts and graphs to impress your friends and family.
So, there you have it, folks. Benchmarking is the personal trainer for your small business. It will help you identify areas for improvement, set realistic and achievable goals, stay competitive, and have fun. So, go forth and benchmark, my small business friends. The world (and your bank account) is waiting for you.
But remember, don't take it too seriously, after all, it's just a benchmark, not the end of the world if you don't meet it.