What is the minimum number of similar businesses required to generate an industry benchmark?

To establish a reliable industry benchmark, data from a substantial number of similar businesses is necessary to ensure validity and account for variability within the industry. Gathering information from at least 30 businesses allows for a more comprehensive analysis, resulting in a more accurate and representative benchmark. This quantity provides a sufficient sample size to mitigate the influence of outliers and anomalies, which can skew results when fewer businesses are surveyed. By having 30 similar businesses, analysts can achieve a more balanced view of performance metrics, ensuring that the benchmark reflects common industry practices and standards. This approach contributes to creating actionable insights for comparison and assessment within that industry sector.