Why business benchmarking is your secret weapon

How does benchmarking work, and what’s in it for you?

Let’s say Company X sets the bar in your sector, and you run a smaller business that’s tracking nicely. What can you learn from Company X’s numbers and operational strategies?  

A benchmarking analysis will reveal valuable lessons and practical tips you can adopt.

Here are five reasons why benchmarking should be part of every business owner’s toolkit, regardless of the size of your operation.

1. Gain fresh perspective and innovative ideas

Stepping back to compare your company with others in the same field helps you see the bigger picture, where you currently stand and where you could go. You’ll pinpoint what’s working for others, what’s not, and how your performance stacks up.

2. Set higher standards and aim for excellence

By identifying industry best practices, benchmarking enables you to lift your own standards. Ever wondered how market leaders stay ahead? Analysing their approaches and outcomes will help you raise the bar for your own business.

3. Uncover what’s driving your results

The numbers tell the real story. A benchmarking report sheds light on your strengths and weaknesses, helping you refine your strategy. For instance, review staff costs as a percentage of profits or compare marketing spend to industry leaders. Discover where adjustments like hiring, restructuring, or training could deliver better outcomes.

4. Cut unnecessary costs and invest smart

Benchmarking exposes inefficient spending and highlights opportunities to reallocate resources. It’s a great way to sense-check bold ideas before acting. If competitors have experimented and failed with a strategy, you’ll know to reconsider before committing your own resources.

5. Get expert support, don’t go it alone

If benchmarking feels overwhelming, partner with your accountant. Specialist advisors can access and interpret the financial and operational data you need, then work with you to build a practical action plan so you spend less time crunching numbers and more time steering your business forward.

Curious to know how your business compares? Reach out to your trusted Forvis Mazars advisor or connect with our experts below to discover how a tailored benchmarking analysis can help you thrive.

Published: 09/02/25

Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.

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