Discover Hidden Profits and Cash in Your Business
• BENCHMARKING STUDIES •
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
how much more money could I be making if I managed
my cost of goods as efficiently as my peers?
does my operating profit compare to others in my
type of operation?
specific action plans can I put in place to get my
numbers in line with the profit leaders?
my cash flow and liquidity levels compare to others?
much more cash would I have if I managed my
receivables as well as my peers?
making the most efficient use of my assets and
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.
"I received my personal copy today of the
benchmark study, and must tell you: it
couldn't have come at a better time. I can't
wait to show my benchmarks to my lender
because it corroborates everything I was
showing and projecting, not to mention that
I have outperformed in most categories.
—Gary Simon, Simon Jewelers
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
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?
for further details on fees and timelines.