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We have applied a process of financial performance measurement to the American Rental Association member companies. Analyzing the
results of the process has:
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revealed key issues for the financial management of American Rental Association
members
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established benchmarks for evaluating the financial performance of individual member companies, and
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established benchmarks for evaluating the financial performance of the group of companies in the American Rental Association.
Steps for Effective Use of the
American Rental Association
Cost of Doing Business Report
This report describes the key issues, the benchmarks for measuring them and provides a framework for integrating financial benchmarking into the management planning strategy for American Related Association members. The report is more than a collection of interesting statistics about American Rental Association members -- it is a powerful management tool. As with any tool, it is most effective when used properly. The following approach is suggested for gaining maximum benefit from this study.
Step 1:
Take the time to read Sections I and II to familiarize yourself with the formats that are used to present information in this report.
Step 2:
Review the actual statistics and analysis in Section III - General Study Information and Operating Results. Here you will find separate executive summaries for the three types of rental companies surveyed: construction, general tool, and party and event. If your business has a combined inventory, please review each relevant section.
Step 3:
If you participated in the survey and ordered the optional consulting report for your company, you also received a comparison of your own company’s results presented in the same format as the study. Review it to compare your company's ratios with the industry results and to evaluate your strengths and weaknesses. Then read Section IV - Action Plans for Success for some specific suggestions on how to improve your company’s performance in any problem areas. If your consulting report has not arrived or you wish to order a consulting report for your company, please contact Business Resource Services at 1-800-488-3520.
Step 4:
Follow the steps outlined in Section V - What to Do Next for a step-by-step approach for integrating financial benchmarking into the ongoing process of managing your business.
The study provides owners and managers with guidelines against which to measure their own financial performance and suggests specific action which, when implemented, can help increase profits and cash flow.
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