If you have a great business concept, it can be easy to get carried away without doing enough market research. And when you invest your time, resources and passion into your work, it can be hard to objectively evaluate where you stand in the market. However, it’s essential to know how you measure up to the competition when you’re starting or growing your business.
Financial Performance Data helps entrepreneurs and small business owners by providing insight into where your business fits within its industry. Don’t miss this guide to the free information that can help boost your business.
What Is Financial Performance Data?
Financial Performance Data provides insight into more than 1,000 business sectors in Canada, from businesses ranging from $30,000 to $5 million, and $5 million to $20 million in total annual revenue and by profit margin.
Information and statistics can be found on profitable and non-profitable small and medium-sized businesses with over 30 performance benchmarks, including details on revenue and expenses, income averages, financial ratios and more. With this information, potential and operating businesses can see how they compare to their industry average.
The data is based on information gathered by Statistics Canada using profiles based on tax returns from incorporated and unincorporated businesses in Canada.
Using Data to Start Your Business
Market research can be one of the most challenging parts of writing a business plan, but it’s crucial to have an accurate depiction of your potential business. However, for many people, finding the right data and applying it to their proposal can be intimidating.
Financial Performance Data creates a financial picture of what your industry looks like. By examining the details of its revenues and expenses, you can estimate the cost structure for your business better. Plus, since the data covers annual revenue up to $20 million, you can project how your business may change as your business grows.
Using Data to Grow Your Business
Financial Performance Data can offer significant benefits for existing businesses, from planning and decision-making to bringing attention to areas in need of improvement.
Business plans benefit more than just start-ups. Staying up-to-date by regularly checking in on your business’ health, performance and competition is one of the best ways to be a leader in your market. And if you’re making significant financial or operational changes, your decisions may benefit from detailed insight into your sector’s financial averages.
It’s also possible to directly compare your business data against relevant industry averages, which can highlight opportunities where your business could improve and where it excels. With this information, you can make educated decisions that can help your business grow.
Using the Financial Performance Data Reports
Four main sections can be seen in the Financial Performance Data reports:
- Selected revenue/expense items
- Balance sheet
- Financial ratios
- Profitable vs. non-profitable businesses
These four main sections can be divided into more detailed information, such as data on net profit/loss, 15 to 17 individual expense items, subcategorized assets and liabilities, 12 different financial ratios and the percentage of profitable vs. non-profitable businesses in the industry, among others. Information on this data can be found in the Financial Performance Data’s Glossary of Terms.
You can find more information on Financial Performance Data here.
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