Business Performance Standards – ( Here Are The Facts! )

Every entrepreneur should know the business performance standards related to their business to evaluate it and develop it properly.

Business performance standards are defined as indicators to evaluate a business’s work, size, and efficiency. These standards are set internally by business management or externally by other bodies such as governments or service providers.

Now, you know the definition of business performance standards. Therefore, the remainder of the article will introduce these standards in more detail. Let’s go.

The difference between business performance standards and key performance indicators (KPIs)

Key Performance Indicators (KPIs) are the indicators that the organization sets itself as targets for reaching them. At the same time, business experts or third parties outside the organization established the BPS.

Therefore, organizations use business performance standards as an external benchmark to monitor their performance level.

Mostly, governments and agencies set BPS to evaluate organizations. For example, the stock market uses these standards to assess companies and determine whether or not they will accept those companies to operate in the stock market.

In some cases, organizations set KPIs to reach certain BPS. As an example, this is to obtain a specific evaluation from the governments or meet some requirements for obtaining loans from banks.

In conclusion, the primary difference between KPIs and BPS is: The organization defines KPIs as the internal goals for its use. As for BPS, external parties such as governments and various institutions set it as a standard for organizations to obtain a particular advantage.

Examples of business performance standards

The standards are different and varied. Also, these standards differ from one field to another. For example, the stock market sets specific standards for companies to enter the market. On the other hand, these standards differ from the standards set by banks for granting loans.

Therefore, we will give examples according to the fields of business.

Online Ad companies

Advertising companies on the Internet, this type of company displays ads on blogs and various sites.

Every company or individual who owns a blog or website requests to register with the advertising companies. These companies set specific standards for the acceptance of these sites.

Ezoic Ad company needs the website traffic to be at least 10,000 pageview/month mark. While Adthrive Company only approves sites once they reach 100,000 pageviews/month.

Stock exchange

For example, the stock market administration determines specific standards for companies wishing to work in the stock exchange.

Listing requirements are a set of business performance standards and other indicators, which a company must meet before listing. For example, NASDAQ standards are the following:

  • Shareholders Equity of at least $2,000,000.
  • At least 100,000 shares of public float.
  • A minimum of 300+ shareholders.
  • Total assets of $4,000,000.
  • At least two market makers.
  • $3 minimum bid price of the company stock.
  • Public float market value of $1,000,000.

As you can see in the previous paragraphs, business performance standards differed from one area to another.


The standards are an effective way to evaluate organizations.

Business performance standards can be defined as indicators that can evaluate and correct business performance within organizations. These indicators represent some of the values and levels that must be reached to gain acceptance from governments or other institutions.

The difference between KPIs and BPIs: The organization sets the KPIs as its internal goals. on the other hand, the BPS is placed by external parties such as governments and various institutions as a requirement.