Business mentor: Comparison with the best helps small-to-medium firms

Q. My business is growing rapidly - I think we are going well but have nothing to compare my business against. How can I really tell if my business is going as well as I think it is?

A. Ralph Marshall at accountancy firm Deloitte Touche Tohmatsu replies.

Small-to-medium business owners often find it very difficult to benchmark themselves against similar businesses as the information is simply not readily available.

This leaves you without the comfort and support of being able to plot your company's progress against other companies.

Benchmarking and learning from the paths other businesses have taken is an excellent way to ensure that your company avoids the mistakes that fast-growing companies commonly make.

Seeking out the advice of people who have already learned the lessons is sensible and useful.

One way in which business owners can benchmark their businesses against others is to enter the Deloitte/Unlimited Fast 50, which recognises and rewards companies for revenue growth.

The Fast 50 identifies the 50 fastest-growing companies in New Zealand. This type of recognition assists in raising staff morale and in recruiting new staff. Not to mention the assistance it will provide when you need to raise further capital to support your growth.

All winners also become part of a regional Fast 50 club. The Fast 50 club draws together owners and senior staff from fast-growing companies for regular forums on issues affecting fast-growing companies.

Issues discussed include dealing with the bank manager, getting publicity for your company and avoiding the speed wobbles. These forums are an excellent place for people from isolated small-to-medium businesses to meet other businesspeople in a similar situation and learn from the joint knowledge of the group and guest expert advisers.



You could also gain valuable benchmarking information by taking part in the annual New Zealand Benchmarking survey produced by the Management Research Centre at Waikato Management School.

The survey is conducted in association with the Institute of Chartered Accountants and has been operating for over 20 years.

It provides businesses with a valuable tool for improving performance through analysis and comparing their financial data with the top results in your industry.

To enter or for more information on the Deloitte/Unlimited Fast 50 visit www.fast50.co.nz or call Nigel Thomas on (09) 303-0808. For more information on the New Zealand Business Benchmarking Survey contact your local chartered accountant.

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