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What
is a Benchmark Study?
A Benchmark Study is a financial "snapshot" of an
industry group that allows individual business owners to compare
their operations to others of similar size and type. In
practical terms, a Benchmark Study report helps participants answer questions such as:
"Exactly
how much more money could I be making if I managed my cost
of goods as efficiently as my peers?"
"How does my operating
profit compare to others in my type of operation?"
"What
specific action plans can I put in place to
get my numbers in line with the profit leaders?"
"How
do my cash flow and liquidity levels compare to others?
Exactly how much more cash would I have in the bank if I
achieved improvements in this area?"
"Am I
making the most efficient use of my assets and
equipment?"
Benchmark
Study reports contain performance ratios. Ratios allow your
numbers to focus on the financial relationships in a business,
rather than just on absolute numbers, such as annual sales. BRS
uses median ratios that show the half-way point in the data
groupings. This is important because medians can prevent
"skewing" of data by a few unusual respondents.
The
reports also contain statements in common-sized format. For
example on a common-sized profit and loss statement, revenue and
expense items are shown as percentages of sales. Percentages,
like all ratios, show numbers in relation to each other.
How
Long Does It Take?
Generally, it takes about 6-8 months to
produce a benchmark study, from initial data collection to final
report. A lot depends on how quickly we can collect financial
statement data from your membership.
We Already Collect Sales and Expense Data from our members.
Isn't that the same?
Without data that ties in information from both the profit &
loss and balance sheet statements of your members, you miss the
key indicators in crucial areas such as working capital and
asset management.
We've Tried Before to Collect Financial Data from our members
and it didn't work.
Confidentiality is a big concern in all the groups we work with.
As an independent third party, we can offer the commitment of
complete confidentiality to your members. We will not share
individual company data with any other organization, including
the sponsoring client, unless we have specific permission from
the participating company.
That commitment
―
along with the credibility we've established
delivering financial education within a network
― make a huge
difference in participation levels. We can get your members to
"play" in the process.
Want More Information? Contact us for further
details on fees and timelines. |
