This tool works best when you’re not just guessing at numbers—you’re using real, credible data to set your benchmarks. Here’s how to get there:

1. Find Your Industry Benchmarks

Don’t just plug in random percentages. Benchmarks are the averages or targets for your type of business.

Best Source: Your local SBDC (Small Business Development Center) can pull a current Industry Report for you—usually from databases like IBISWorld, RMA, or First Research.

You can also check trade associations, industry magazines, or franchise disclosure documents (if you’re in a franchise-heavy industry).

Look for data that shows % of revenue spent on COGS, payroll, rent, marketing, and other major expense categories.

2. Common-Size Your Financials

If you want to compare apples to apples, you need to common-size your P&L. That means converting every line item into a % of revenue.
Here’s how:

Take your most recent P&L (monthly or annual).

For each expense category, divide the dollar amount by total revenue.

Multiply by 100 to get the percentage.

Now your numbers are in the same format as the benchmarks—and ready for side-by-side comparison in this tool.

Example:

Revenue: $500,000

Rent: $40,000

Rent % of Revenue = $40,000 ÷ $500,000 × 100 = 8%

3. Use the Tool to Build Your Action Plan

Plug in the benchmark % you found for your industry.

Enter your actual % from your common-sized P&L.

See instantly where you’re overspending, underspending, or right on target.

Then, build your cut / invest / hold action plan based on the variances.

If you don’t have industry benchmarks yet, stop here and go get them. Guessing is how businesses drift into low margins without realizing it. This tool is only as good as the data you feed it.