Business Benchmarking & KPIs
All the gear and no idea? Growth IQ is here to guide you through successful business benchmarking and the setting of relevant, measurable KPI’s.
What is business benchmarking?
Business benchmarking is the monitoring of your vital KPIs’ and metrics to measure growth, and comparison to the available information of other businesses within your industry. Business benchmarking can be internal and external.
What is a KPI?
A Key Performance Indicators (KPI) is a vital measure that a business chooses to indicate its progress towards a chosen goal. Setting both measures (eg number of clicks, thousands of dollars) and targets (eg 50 clicks per post, $3000 in new signups each week) are vital in business benchmarking and KPI’s.
For your business benchmarking accurately reflect your operation, data must be reliable, and check-ins on your progress must be at regular intervals, be it daily, weekly, monthly or all of the above.
Why is business benchmarking important?
At its core, business benchmarking keeps you on your toes, and therefore drives innovation. Internally, KPI’s keep you focused on business strategy and performance. Regular measuring of your internal performance indicators and comparison to your competitors ensures you keep a firm grasp on what works, what doesn’t, and who is doing it best.
By measuring against the best and worst in your industry, you learn where you stand. Take it as an opportunity to identify any issues or weak areas of your business. If you don’t like what you find, take your processes apart, and put them back together. The silver living is a clear-sighted chance to reassess!
Why is it important to measure KPIs?
Key performance indicators in business help companies, teams and individuals to measure the success of their inputs, set goals, and continue to grow each month, quarter, and year. By setting multiple and specific key performance indicators within your business, you can analyse different components of your business on a variety of levels – from different products or team members, departments, marketing, and so much more. The limit does not exist!
How does Growth IQ track business performance against KPIs?
At Growth IQ, we combine modern accounting software with our combined expertise in accounting, bookkeeping, taxation and financial advisory to provide an all-encompassing approach to business performance.
Utilising the power of Xero and a suite of other software, we break down the numbers so that you understand the vital figures that equal your bottom line. As your virtual CFO team, we are able to remotely produce financial reports that are relevant to you in real time– and so can you.
Benchmarking & Financial Advisory
Business benchmarking is where our financial advisory really comes into play. Combining strong data with expert advice, Growth IQ can help you to select relevant KPI’s, implement new practices and procedures, and keep you accountable. With regular reporting and meetings to evaluate your progress, and your virtual CFO team just a phone call away, the only way is up!