Benchmarking is a process which compares your business’ performance against others in the same industry to discover what changes need to occur within your business to enhance its’ performance and become a bigger player in your industry. What are the benefits? 1. Goal setting – Benchmarking can reveal the potential that your business could reach. With these insights, you can set more competitive goals for you and your business. 2. Competitive analysis – By pinpointing the areas in your business that require improvement, you gain strategic advantages over your competitors to enhance your execution tenfold. 3. Action plan – With goals and areas pinpointed for improvement, you can plan the course of actions that are required. 4. Performance monitoring – By benchmarking on a frequent basis, you can monitor the progression of any changes that have been made to your business by looking at the current trends and project future ones. Some may say that it is not worth comparing their business to others because “my business is different”, but that is exactly why you should use benchmarking as a tool. After all, one business may achieve better results than another due to having different products, prices, customers, suppliers, productivity, marketing strategies or something else that makes them different. This as an opportunity to learn and see what other businesses in your sector are doing and discover if your results could be better if you did things differently too.
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