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Is Your Business Performing As It Should?

Health and Fitness Centres

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 – $175,000

$175,001 – $600,000

More than $600,000

Cost of sales / turnover

4% - 12%

4% - 9%

3% - 8%

Motor vehicle expenses / turnover

4% - 6%

2% - 3%

1%

Labour / turnover

22% - 34%

21% - 33%

20% - 35%

Rent / turnover

16% - 25%

16% - 23%

13% - 20%

Total expenses / turnover

54% - 73%

73% - 86%

78% - 89%

Average total expenses

64%

80%

83%

Average net profit
before income tax

36%

20%

17%

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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