Benchmarking

As you read this, The Australian Taxation Office is monitoring your business for anything it considers to be out of the ordinary. Right now, your competitors are looking for ways to get an advantage over you. It would help if you had Benchmarking.

The Australian Taxation Office uses benchmark data from over 1.5 million small businesses around the country, to help small businesses compare their performance with their competitors and ‘swim between the flags’. They believe that businesses should use the available benchmarks to gauge the strength of their business and keep an eye on their competition.

They are using this data to detect businesses that are operating outside the benchmarks. Where red flags are identified, contacting those businesses for an explanation, at Precision, we know what is monitored by the Australian Taxation Office, what the red flags are and with our benchmarking strategies, can help you to stay under the radar.

Despite the Australian Taxation Office looking over your shoulder, there are commercial and competitive reasons why you want to benchmark your business. Mainly, you want to know how your opposition might be doing, and where you might be able to beat them.

Right now, your competitors are looking for ways to get an advantage over you. It would help if you had Benchmarking. 

We know that every business is unique. For example, a coffee shop in Newcastle will have completely different operating costs to an electrician in Bondi. While it may have its own identity and set of operational circumstances; every business has a few similarities to others that are trading within your industry. Whether it be the materials you purchase, your profit margins or the amount you spend on employing staff or subcontractors, understanding how your business is performing relative to your competitors can give you a clear competitive advantage.

When you work with Precision on benchmarking your business, the process is customised to suit your requirements and budget from the very beginning. We can prepare a detailed analysis that immediately reports on how the Australian Taxation Office may view your performance and whether they consider you to be swimming between the flags. We can prepare a review on how you may measure against your competitors, and in both instances, we can make recommendations to improve your businesses performance.

There are various reasons why your business should benchmark, and there are many reasons why your competitors are already doing it. If you want to know what the competition is doing or have a question about how to get started, don’t hesitate, Join the conversation… and let us help you.