How Internal Benchmarks Help You Set Realistic Business Goals

How Internal Benchmarks Help You Set Realistic Business Goals

As a business owner, it’s important to be aware of the industry benchmarks and where they’re trending. Knowing the competition and industry helps you know what your organization is doing well and where there can be some improvements made.

It’s common to base your business goals off of these external benchmarks and it makes sense; you want to stay competitive in the market and grow at a similar pace. However, what happens when you’re significantly above or below the market? Does it still make sense to set your business goals based on the external benchmarks?

Another consideration is if you have no direct competitors. Industries are becoming more and more niched-down, which means the target audience may not be the same across the industry. Given that, does it still make sense to create goals for your organization based on external benchmarks?

The next time you sit down to map out a business goal, first ask yourself these five questions and then consider basing it off of your own organization. Benchmarks that are based on internal performance are more realistic because they’re coming directly from the source.

As a business owner, you know that the best way to determine where you want to go is to have a clear and accurate picture of where you are starting. Internal benchmarks allow you to do just that – identify your precise starting point in order to create realistic and achievable business goals.

If you’re not sure where to start, outlined below are three quick and easy steps for setting up the right internal benchmarks to create realistic and achievable goals for your organization.

The first step is to determine what the proper benchmarks are – is it your mailing list, follower count, page views or product purchases? The key is to clearly define what metrics are important to you and why they matter.

After knowing what you’re looking for, it’s time to dive into the analytics and record the results. These numbers are your standard or benchmark. If you’re looking for a metric that isn’t clearly or accurately recorded, you will first need to record the data for a set amount of time to get an accurate benchmark.

Once the standard metrics have been establish, you can now create your business goals based on these numbers, knowing they are realistic and achievable.

Still not sure where to start? We offer strategic planning services that specialize in setting the right goals for your business! Contact us today to get started!