Globally and in India, between 60 percent and 90 percent startups flounder and fail within the first two to five years. There’re several reasons for such flops. However, the most significant cause of failure is shortage of money.
Money shortage for a startup occurs due to a plethora of reasons. Firstly, any startup requires time to establish itself in the market and find acceptance among customers. Secondly, most startups are copycats of other successful ventures. Hence, a customer mightn’t find any unique points in your startup to patronize its services and products. And thirdly, startups don’t have any international or quality certifications that provides them a leading edge over others.
In such situations, an ISO 9001 certification can definitely help your startup overcome several of these hurdles and grow.
But first, it’s important to know what an ISO 9001 certification is all about.
Understanding ISO 9001 Certification
Currently, ISO 9001:2015 is the latest certification. The abbreviation ISO expands as International Standards Organization. The figure 9001 signifies quality standard that are in force. The suffix 2015 denotes the year when the quality and standards for ISO 9001 certification were amended.
An ISO 9001:2015 is a Quality Management System (QMS) certification. Meaning, your startup complies with international standards of quality management across all your departments- from manufacturing and customer service to human resources and finance management. It encompasses every function of a startup.
Benefits of ISO 9001 Certification for Your Startup
As I explain above, an ISO 9001 certification means your startup complies with internationally accepted QMS. Hence, Indian and foreign companies would are more likely to seek your products or services when compared over similar organizations that don’t have an ISO 9001 certification.
Here are some other excellent benefits of ISO 9001 certification for your startup. The main benefit of an ISO 9001 certification is the trust it generates among other businesses and customers.
Attracts More Customers
As a rule, several major companies in India and abroad will deal only with ISO 9001 certified suppliers and establishments. When your startup holds an ISO 9001 certification, it’s possible to seek business from such organizations.
An ISO 9001 certification serves as proof of your QMS. Hence, your startup would be more likely to attract business from such companies. Usually, largest organizations in the world will deal with ISO certified companies only. Thus, you’re attracting prestigious clients to your startup. Such customers needn’t be in India only. An ISO 9001 certification has international recognition. Hence, you can attract foreign clients and grow your startup.
Prequalification for Government Contracts
The Central and state governments in India have stringent standards for handing contracts. And over the last few years, these standards are being applied with due diligence. Usually, any startup or well established organization has to prequalify with Indian and state government standards before bidding for any significant contracts. If your startup holds an ISO 9001 certification, getting such prequalification for your startup becomes much easier.
Hence, your startup gets an opportunity to bid for high value and prestigious contracts the government floats very frequently. Of course, there are other standards you’ll also have to meet to prequalify. Yet, an ISO 9001 certification helps you get prequalification faster. Lucrative government contracts helps your startup holding an ISO 9001 certification to grow fast. Participating and executing a government contract serves as testimony of your startup’s QMS. Hence, your startup stands better chances of attracting more business and growing.
Reduction of Wastage and Other Losses
When your startup implements QMS and complies with ISO 9001 standards, it’s actually reducing wastage of resources of all kinds and preventing losses. This is a very important feature that other companies look at while looking to work with your startup as business associates or hiring as contractor. Understandably, who would wish to work with a company that wastes own and other’s precious resources?
Reducing wastage and other losses tends to lower costs of operation and are vital while executing a major contract. An ISO 9001 certification also signifies that your startup is capable of executing an order or contract on schedule, thus eliminating wastage of time and completing work by the set deadline. These features of an ISO 9001 certification help your startup grow since you can bid for or attract time-bound projects and contracts.
Brings Prestige to Your Startup
Having an ISO 9001 certification is extremely prestigious for any startup. The reason is simple: several larger and established organizations haven’t yet got an ISO 9001 certification because they couldn’t meet the strict QMS specifications. And even fewer startups will be able to get an ISO 9001 certification because implementing QMS isn’t the proverbial cakewalk.
When your startup gets an ISO 9001 certification, you’re actually entering the big league of business. Your startup will be somewhat at par with largest corporations that implement QMS and comply with ISO 9001 standards. Furthermore, an ISO 9001 certification isn’t a one-off exercise. You’ll have to upgrade your QMS once in three years to maintain the ISO 9001 certification. This means, your startup and staff will have to continually upgrade skills and maintain excellent practices in all areas of operation.
Gives an Edge over Other Startups
As I mention earlier, most startups are copycats of other successful businesses. Hence, they mightn’t wish to opt for an ISO 9001 certification. It’s easy to copy a business model. But implementing QMS is difficult and an altogether different ballgame.
When your startup gets ISO 9001 certification, you’re stealing that vital edge over rivals and competitors. Though your startup could be a copycat of others, you’ll have better chances of success if the one whom you’re copying doesn’t have an ISO 9001 certification.
An ISO 9001 certification isn’t something useless or unnecessary for any startup or even an established business. It indicates you’re serious about doing business and are complying with international standards. An ISO 9001 certification also instills trust and confidence among other organizations that wish to do business with your startup. Hence, an ISO 9001 certification can benefit your startup to grow and flourish rather than flounder and fail.