As any business owner operating in a competitive market knows, no entrepreneur is an island unto himself. In order to succeed, you must find ways to measure your company’s performance against that of your rivals. Taking time to do this is the only way to have an accurate idea of your past, your current successes and challenges, and what course to take to promote future growth.
The Benefits of Benchmarking
Taking stock of your business’s performance can be helpful in a number of ways. By doing so, you can:
- Identify where your opportunities for growth lie
- Better understand your customers’ needs and wants
- Perceive your areas of strength and deficit
- Monitor your current performance and set goals
- Understand and manage change better
While it might seem like benchmarking would involve a tremendous amount of work, you may already have the tools at your fingertips. That’s because your point of sale payments system comes equipped with the capability to generate payroll, inventory management and sales reports, all designed to make the process much easier.
Benchmarking in a Few Easy Steps
Use your POS tools to see how your company stacks up against your rivals. It’s as easy as sitting down and asking yourself a few questions:
- Figure out what you want to measure. It should be in line with your business goals.
- Make a list of exactly who your competitors are and what they are doing correctly as well as where they appear to be struggling.
- Use online and peer resources to gauge any trends and points of growth or change in your industry to predict your own need for adjustment.
- Set goals for your future that are in line with your mission and marketing plan.
- Construct a detailed action plan that shows how you will accomplish your goals.
- Regularly monitor your progress. Even the best goals are useless if you don’t stick to them. This is perhaps the least glamorous but most important step in benchmarking.
For additional ways to measure the success of your business in your local marketplace, consider tools specifically developed for this purpose, such as Groovv Insights, powered by Womply.
When you were a student, you were regularly given a report card that let you know how your academic progress measured up. Think of the benchmarking process as a similar way to assess how your company stands up against the rest. Once you make this a regular part of your routine, much of the guesswork will be gone, and you can expect to have even more satisfied customers.