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Is Your Business Performing As It Should?

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In this series we will provide benchmark statistics to help you compare the performance of your business to your competitors.

In comparing your business, these benchmarks should be considered the minimum acceptable performance. Don't settle for average. Seek to outperform.

Key benchmark range

Annual turnover range

$65,000 – $200,000

$200,001 – $500,000

More than $500,000

Cost of sales / turnover

27% - 40%

29% - 41%

33% - 45%

Average cost of sales

33%

35%

39%

Labour / turnover

22% - 34%

18% - 28%

20% - 30%

Rent / turnover

7% - 12%

6% - 9%

4% - 6%

Motor vehicle expenses /turnover

4% - 6%

2% - 3%

1% - 2%

Total expenses / turnover

68% - 82%

75% - 87%

83% - 91%

Average total expenses

75%

81%

87%

Average net profit
before income tax

25%

19%

13%

Regularly comparing your business to the industry benchmarks will assist you to keep improving its performance. Should you have any questions concerning either your business or how to identify and monitor your business' key drivers, please contact us at Lowe Lippmann.

Gideon Rathner is the Partner in charge of the Corporate Reconstruction & Insolvency practice. He has over 30 years experience in insolvencies,  identifying the business drivers and reviewing businesses in financial distress. He leads a young, dynamic and energetic team that is solution focused.

Source: ATO small business benchmarks

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