Increase Profitability with Benchmarking

Regardless of the industry you operate within, if you want to truly identify your company's competitive advantage, you need to be able to understand the strengths and weaknesses of your business, and how the strategies you have chosen affect your profitability.

It's simple enough to list all of your company's strengths and weaknesses, but to do this effectively, you must benchmark, or compare, these items against those of either your competitors or even against your own past performance. If you're new to the concept of benchmarking, there is a helpful resource on what it is, and how to do it, which can be found here.

By comparing and analyzing your company's performance in this way, you can begin to understand which of your management decisions have been the most profitable to your business, and which have missed the mark. In this way, you can begin to focus in on your company's return on investment (ROI), and look for ways to make the decisions that bring the highest return thus increasing your profitability.

More on ROI and other useful financial ratios to help you improve your business are on the way.

In the meantime, subscribe to our site today (it's free) and keep up to date on all the latest tips and techniques to increase your profitability.

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