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 poin
