How is your real estate business really performing? You probably keep a close eye on key financial metrics such as profit, revenue and margin. But what if that financial performance is being driven by general market conditions, rather than your own capabilities or skilled management?

Benchmarking allows you to compare your business to similar firms within the same sector – and is one of the most effective ways to improve operations, productivity and profits.

Benchmarking is a practical reality check for business owners and managers, and will reveal if your success is due to good management, or simply because the market is booming.

A valuable source of independent data

Benchmark reports can give you valuable insights into your industry – insights that not all your competitors will have. So it's important to interpret those insights within the context of your challenges, and understand whether your success is in line – or exceeding – the industry average.

Opportunities for change

Taking the time to get a clear strategic overview of your business can be a challenge for busy business owners or managing directors.

A benchmark report can dissect the market and give a clear, simple understanding of how other businesses are improving efficiency, finding growth, or managing their people.

Benchmarks to consider

• Financial performance – revenue, profit and margin
• People performance – profit or revenue per employee, recruitment and retention trends, ideal staff structure and remuneration, salaries as a percentage of costs
• Growth trends – mergers and acquisitions, valuation trends, alternative revenue sources
• Industry outlook – growth expectations, areas of investment, impact of technology.

Macquarie Business Banking is now conducting its 2016 Residential Real Estate Benchmarking Survey. The survey has been conducted every two years for a decade now. Taking part in the survey will give you special access to the results, and allow you to benchmark your business. The survey is appropriate for both large and small real estate businesses, and will be open until Wednesday 30 November. The survey can be accessed here.

"Macquarie Bank’s Benchmarking Survey delivers invaluable insights into your business and encourages you to look at elements within your business that could be improved," said Hayden Groves Deputy President of the REIA. "As competitive agents, we like to measure our business’s performance against others, and Macquarie’s Benchmarking provides the basis upon which every aspect of your business can be properly scrutinised."

This content has been provided by Macquarie Business Banking.

See also:

Information is power

In praise of great customer service

The value of brand