Efficiency for the Small Business

At a recent presentation to the US Small Business Administration on Long Island, NY, IMSM's Area Manager, James Goldstein, explained how ISO 9001 works and why it is particularly relevant for smaller businesses. We caught up with James afterwards, and asked him to elaborate. Here are his replies.

Why should a small business look at ISO 9001?

James: Quite simply because a small business very often has to compete against a big business. ISO will put the small business on a level playing field with the larger business.

How can a small business justify the cost in time and scarce resources?

James: Business rule 101: For every dollar you save internally you will have to make two dollars more in sales to show the same margin.What is the hidden cost of not doing it right the first time? With ISO, a foundation is put in place to find and correct problems and to fix the root cause so they don't happen twice. A company operates tighter with every correction thereby freeing up scarce resources that would otherwise be used inefficiently.

Many businesses get by without ISO 9001. For which types of business/industry sector is it particularly useful?

James: Ask yourself these questions- is your company the best at what you do? Are you unique ? The problem is the answer is always yes. Is it possible that every company is the best? Of course not. ISO is a valuable tool in ANY industry or business sector where you need to satisfy a customer's needs. Having a process and plan to keep improving will help to keep your business ahead of the competition.

Do businesses need to be operating for several years to get the most out of ISO?

James: On the contrary. ISO is a management tool that can help fledgling companies develop skill sets that may be lacking. Most businesses in the past have used a 'trial and error' method. In today's marketplace that just doesn't cut it. Think of a pyramid. A new business is putting the bottom blocks in place. Over time if those blocks are not placed correctly the whole pyramid collapses. This is why many companies who have great ideas don't succeed, they are missing the foundation.

Why is ISO a great marketing tool for smaller businesses?

James: You always need a reason to get your name out there. What better reason then to announce you have achieved an internationally recognized quality management system? An example would be a client I just completed (a 3-person company) who installs audio visual. They got the largest contract of their company's short history from a very large stock brokerage in NY to inspect what another company had done. Why? Solely based on ISO. They sent postcards with their ISO logo and got work they would otherwise never have seen.

In a busy schedule it is easy to put ISO off until later. Why should businesses prioritize this issue?

James: Any forward thinking executive realizes that to stand still is to be run over by the competition. What could be more critical than customer satisfaction? Isn't it better to "be the competition" rather then be a "me too" company?

How can I find out more?

James: That's easy! The US Small Business Administration will be listing IMSM in their resource manual. Or, companies can contact me directly, toll free, at 1-800 708 8856. As we have a wide array of business managers who understand the needs of small business, and will be happy to have one help you.

18/01/05