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How to find the expected benchmarks and KPIs for your industry? - e64
Feb 1, 2022
Mitchell Baldridge, CEO of Baldridge Financial, discusses finding benchmarks and KPIs for your industry. They explore methods like trade organizations, trade journals, and competitor information. Gathering research and understanding benchmarks before buying a business is key. They suggest seeking insights from industry experts, cautioning against unreliable sources. Valuable tips include accurately determining gross margin, consulting experienced individuals, and considering past and modern business practices.
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Quick takeaways
- Analyzing public company filings can provide valuable insights into relevant metrics and benchmarks for a new industry or business.
- Framing inquiries with a potentially inaccurate benchmark prompts industry professionals to share valuable metrics and engage in open discussions.
Deep dives
Using public company filings for benchmarking metrics
One effective way to determine relevant metrics and benchmarks for a new industry or target business is to analyze public company filings. By examining the percentage of revenue spent on marketing by similar companies in the industry, one can gain valuable insights into what constitutes good metrics. Although the size difference should be taken into account, this approach provides a solid starting point for researching industry key performance indicators (KPIs).
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