Definition

Planning ways to expand your business and increase earnings. A simple plan helps focus efforts on what works best.

What to consider

  • Choose relevant and current benchmarks.
  • Review performance data regularly.
  • Use benchmarks to inform strategic decisions.

Real world scenarios

  • A company compares its key financial ratios against industry averages to assess performance.
  • An entrepreneur reviews competitors’ profitability to set realistic targets.
  • A small business uses benchmarking data to identify areas for improvement.

Related terms

Entrepreneurial Finances