The use of benchmarking. Survival in today’s business climate requires you to spend more time working ON your business rather than IN the business. Most businesses fail, or never reach their full potential, because their owners spend too much time doing the work that the business does, working IN; rather than managing and growing it, working ON.
Part of working ON your business would be having the knowledge of how your business performs compared to your competitors. It would also entail finding out if you are charging enough for your products & services; whether you spend too much or not enough on marketing or in the right areas; whether your staff costs are too high; and, how profitable you are in relation to your competitors. We call this benchmarking.
Before you can properly benchmark your business, you will need to analyse your own business. It is important to determine what you do, why you do it and who you do it for. You need to work out exactly what your customers require from you, who your main customers are and why they come to you rather than to your competitors.
Identifying and analysing industry standards and trends will help a business stay ahead of its competitors. Decisions about critical factors like future investment and new product development need to be made in relation to trends, whether positive or negative, that will impact the business. By doing so you have the potential to reap the benefits of being amongst the first in your sector to reach the peak of any cycle.
Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis of your business as it is now within your industry.
Benchmark your financial results with your competitors on an anonymous basis using the AVN BenchMark database and analyse your strengths and weaknesses by comparison.
Develop strategies to improve your performance and remove weaknesses.
Assist you in implementing the strategies.
An evaluation of industry trends based on findings compiled and restructured from comprehensive information which is obtained from a range of relevant sources, including industry surveys and market analysts' reports.
A forecast based on an analysis of positive and negative effects on the business and the timing of trend cycles.
Trends plotted against the strategic plan of your business, ensuring they are aligned and recommendations for changes if appropriate.
Key Performance Indicators (KPIs) defined to outline how the business' performance will be monitored.
Action plans to seize the opportunities and mitigate the threats that industry research and trends present for your business.
Goals and strategies which are realigned with the standards and trends of your industry.