In difficult, recessionary times it’s crucial to stay ahead of the competition. The analogy that ‘Cash is King’ has never been so pertinent. Therefore, it might be a good time to benchmark your business.
What is benchmarking?
Benchmarking used your accounting data to confidentially compare your business to others in your industry. This will help you see how you might be able to strengthen your cash flow to weather the recessionary storm.
Although you may well be coping admirably with the current climate, it is still crucial that you are able to compare your own figures to those of your direct competitors (by industry and location), with regards to aspects such as gross margins and debtor days.
If somebody else in the same trade has a higher profit margin than your business, or they get paid more quickly than your business, then you should be able to do just as well.
So, are you keen to find out how increasing your gross margins to the same level as your competitors could add a considerable amount to your bottom line profits? And do you want to find out where you rank in your specific industry sector in terms of factors like debtor days?
So, are you keen to find out how increasing your gross margins to the same level as your competitors could add a considerable amount to your bottom line profits?
And do you want to find out where you rank in your specific industry sector in terms of factors like debtor days?
A benchmarking review will allow you to determine how well your business is doing, discover areas where you need to improve, and develop a plan for achieving those improvements.
Before you can decide where you are going, you need to know where you are now – and benchmarking can help you do this.
Our offer to you
At Accountancy Edge we are determined to help North Devon businesses in any way possible. We would be delighted to provide you with a complimentary Benchmarking review, which will produce a detailed and entirely personalised report all about your business.
If you would like to find out how to increase your profits and strengthen your cashflow, then contact us today.