As a small business owner, you’ve always had to be adaptable — it’s part of the job. But 2025 is proving to be a different kind of challenge.
Prices are still climbing. Customers are more selective. And there’s more competition across the board. So, setting clear benchmarks isn’t just a good idea this year — it’s how you keep your business stable.
We’re accountants based in Milwaukee, and we’re here to walk you through what small business benchmarks matter most this year — and how to actually use them.
Why Benchmarks Matter in 2025
Business confidence is shaky across the country. According to the U.S. Chamber of Commerce, inflation, higher costs, and uncertainty are making it harder for business owners to plan ahead — or even know if they’re doing “okay.”
That’s where benchmarks come in. In a stable economy, you can coast a little. But in a year like this, you need something concrete to measure against. Benchmarks give you a clear view of how your business is actually performing, not just how it feels.
They help you spot problems early, see what’s working (and what’s not), and make decisions based on facts instead of guesswork.
When the outside environment is unpredictable, internal benchmarks give you something steady to work from.
The Benchmarks to Watch This Year
Revenue Growth Rate
A good target in 2025 is 5–10% revenue growth. It doesn’t have to be dramatic. Slow and steady growth shows your business is holding up — and gives you a base to build from.
Look at your numbers by product or service. What’s driving the growth? What’s taking up time but not bringing in much return?
Gross Profit Margin
With supply costs rising, this number is more important than ever. You want your gross profit margin (revenue minus direct costs) to stay between 40% and 60%.
If it’s dropping, review your pricing, cost of goods, or service delivery model. It’s easy to lose margin without realizing it, especially if you haven’t adjusted pricing in a while.
Customer Acquisition Cost (CAC)
How much does it cost to get a new customer? That cost should stay under 20–25% of the revenue you expect from them in their first year.
If you’re spending more than that, it may be time to rethink where and how you’re marketing — and how effective your sales process really is.
Cash Flow Forecasting
Cash flow is still one of the top stress points for small business owners. If you don’t know how much cash you’ll have in three to six months, that’s a problem.
Even a basic forecast will help you plan for expenses, stay ahead of tax deadlines, and avoid scrambling when something unexpected comes up.
Employee Retention Rate
Good employees are still hard to find — and harder to replace. A healthy retention rate is under 15% turnover per year.
That doesn’t mean you need to overhaul your benefits package. Often, it comes down to communication, clear expectations, and flexibility where it counts.
Net Promoter Score (NPS)
Would your customers recommend you? If you’re not sure, that’s your answer.
You want to aim for an NPS between 30 and 70. It’s not complicated to track — a quick survey or a simple follow-up email after service can give you useful feedback you might not hear otherwise.
How to Actually Use Benchmarks
It’s one thing to set a target. It’s another to use it — to keep it visible, track it, and make decisions from it.
Start by making sure your benchmarks are realistic for your business. National averages are useful reference points, but they don’t reflect your pricing, overhead, or local customer base. Build goals around your numbers.
Once those goals are set, check in on them regularly. Quarterly is a good rhythm. Even a 30-minute review every few months can help you catch trends before they become problems.
Use tools that make the process easier. If you’re still relying on spreadsheets, it might be time to switch to cloud accounting software like QuickBooks or Xero. You’ll get better visibility into your numbers and less friction when it’s time to review them.
Make sure your team is looped in. Employees don’t need every financial detail, but they should know what the business is working toward — and how their role connects to it. It turns daily tasks into something bigger.
And don’t forget to plan for what-if scenarios. Set benchmarks not just for the ideal version of the year, but also for the bumps in the road — higher costs, slower months, unexpected expenses. You’ll be better prepared to adjust without losing momentum.
If you’re not sure where to start or what’s reasonable for your business, talk to someone who works with small businesses every day.
A good accountant can help you set the right targets, build a system for tracking them, and make better calls based on what the numbers actually say, not just what they might mean.
Final Word
Small business owners are no strangers to change – but this year, staying on track means being more intentional with your numbers. Benchmarks don’t need to be complicated or overwhelming, but they do need to be part of how you run your business.
If you’re ready to set smarter goals and actually use them to make better decisions, we can help.
At Affinity Accounting, we work with businesses across the country to build financial systems that are clear, practical, and built to support real growth, no matter what the year throws your way.
