What is Benchmarking?
Benchmarking is the process of comparing the performance of your practice to other practices within the industry. A benchmarking assessment will assist your business practice's growth and analysis of a practice's performance.
Why is benchmarking essential to your practice?
It is an essential process for any business practice, be that against other similar businesses, or your past or future forecast performance. It will identify areas of strength, and help to determine areas requiring improvement.
"If you always do what you've always done, you'll always get what you've always got." - Henry Ford
Gaining clarity and improving practice performance and operational management makes a real difference both in financial rewards and owner/practice manager peace of mind in addition to making your practice ready for sale, succession or capital raising.
The benefits of business practice assessment are:
- Knowing how your practice is performing compared to industry standards with consideration to size and location.
- Identifying the areas of your practice that are performing poorly and requires urgent attention.
- Stimulate strategic discussions regarding aspects of your practice performance.
- To provide a reference for setting performance expectations - therefore improving the business (practice) performance.
- To enhance the financial viability of your practice, to make it more attractive to prospective business partners (succession planning) and to illustrate levels of financial management for financiers.
The benchmarking assessment will involve the following:
- A review of your practice's financial records over the past three years.
- A review of non-financial information such as levels of staffing, the numbers of practitioners, appointment structures of practitioners, the operational details of your practice.
- Analysis of financial performance against similar business with consideration to size and location, including identifying the profit improvement potential.
- The benchmarking exercise should be repeated yearly to see what has changed. What has happened in the sector and son on.
Helping practices achieve their goals is our passion. Our strength is in our dedicated professional health team ready to support your journey. Make the time today to book an appointment with Danny Haydon | Principal, Health Division.
Your investment in the our Benchmarking Assessment service will be advised once the full scope of the work has been determine.
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