Setting standards

Issue 13, January 2004

Small Business Update is the monthly magazine for people running their own business. Articles vary in length and cover 'hot topics', issues of importance, and current affairs.

Setting Standards

Although standards are commonplace in and across many sectors, there are still many myths that surround them. These include the belief that standards are relevant only to big businesses, those involved in manufacturing or that adopting standards involves more time, money and hassle than it's worth. With the British Standards Institution set to launch a new campaign in spring 2005 that aims to raise awareness, Vicki Taylor finds out more about standards and what benefits they can bring.

Standards are employed across the full spectrum of technologies, sectors and businesses. All standards are voluntary, falling into two main categories. Technical standards set out specifications that businesses must meet if their products, processes or services are to match thresholds of quality, safety and compatibility. Management-system standards create a benchmark for the way business processes and activities should be managed.

UK firms can now choose from approximately 20,000 standards, covering activities as diverse as operating cranes safely to manufacturing a thermostat. Each has a different serial number, with British Standards bearing the prefix BS. European standards carry the prefix EN, while the numbers of international standards are preceded by ISO (International Standards Organization).

The Kitemark is another familiar standard. Displaying this shows that a product or service has been rigorously tested and approved. A Kitemark scheme can be developed using a BS, EN, ISO or trade association specification.

Businesses that manufacture or import certain products in any of the member states of the European Economic Area (EEA) must "CE-mark" their products against essential requirements set out under relevant EU directives.

Introducing standards

A popularly held myth is that compliance involves a lot of red tape. However, in order to comply with a particular standard, all you actually have to do is identify and buy the most suitable one for your business and then implement it yourself.

For added weight, many businesses seek independent accreditation that they are using the standard correctly. Those that want to take it a step further can get certified, when the implementation of a standard is tested by an organisation approved by the United Kingdom Accreditation Service (UKAS). The Department of Trade and Industry works closely with other organisations to provide a standards-testing and certification infrastructure.

Although it is not always necessary to get accredited or certified, it is sometimes well worth considering. This is especially true if you are selling a safety-critical product or if there is considerable market advantage to be gained by having an independent body say that you meet a particular standard.

Business benefits

When you buy a standard you purchase a body of information written by industry experts that has also received input from government experts and consumers (where applicable).

"Standards can be particularly useful to start-up businesses, firms considering making a new product or moving into a new market," explains Richard Wheatley of the British Standards Institution (BSI) - the national body which develops, publishes and oversees standards in the UK. The BSI is also the first port of call for businesses wishing to find out more about European and international standards.

"Being able to rely upon a standard can save time and money during a product's research and development phase, as well as reducing of the risk of ending up with an inferior or unsuccessful product. When at the concept stage of product or system design, it makes sense to look at what knowledge is already out there in the form of standards," Wheatley advises.

Adopting a standard (or standards) could bring your business many other benefits. "These include helping businesses to win new customers, move into new markets or reassure their existing customers that products or services meet strict quality criteria," he says.

"Standards can also help businesses to increase business efficiency, by reducing the likelihood of mistakes, misunderstandings or problems - especially when companies form part of a supply chain. "In addition, certain customers will make having a specified standard a prerequisite before they will buy from you."

Exportation

Buying standards can also be beneficial if you are thinking of moving into international markets. British standards serve the UK market, while companies and organisations in more than 100 countries now have ISO standards. Sometimes an ISO and a British standard might be the same, but choosing the ISO could better suit selling to an overseas market.

As Wheatley points out, standards also enable UK businesses to comply with EU regulations. "All EU regulations are written in a very goal-based way. For example, it might say that a 'product must be safe'. But, by complying with a standard you can rest assured that you are meeting your requirements.

"Whatever standard or standards you decide upon, you should remember that it is never the answer on its own," warns Wheatley. "The value and the benefits standards can bring are in using and applying them effectively."

For more information visit the British Standards Institution website.

Copyright © Business Hotline Publications Ltd, 2005

Disclaimer: Business Hotline Publications Ltd, and the Institute of Chartered Accountants in England and Wales disclaim all liability for any errors or omissions in the Small Business Update publication.

Disclaimer: Business Hotline Publications Ltd, and the Institute of Chartered Accountants in England and Wales disclaim all liability for any errors or omissions in the Small Business Update publication.