Certification: Do You Really Need It?

 

Business Certification and Professional Credentials – Worth the Investment?

Not all certifications are created equal. Some, like food safety certificates or trade registrations, are essential to operate legally. Others, such as ISO certification, can boost credibility and open new opportunities but require careful consideration of the costs versus benefits. It is crucial for businesses to distinguish between these mandatory compliance certifications and those that are simply “nice to have.” At Josty, we help businesses decide which certifications are necessary and how to strategically leverage them for growth.

Why Certification Matters

In the business world, certification is often a mark of credibility and professionalism. For some businesses, it's not a choice. A café can't legally operate without a Food Safety Certificate, and an electrician can't work without a registration and practicing licence. These are non-negotiable requirements that form the foundation of compliance and consumer protection.

Beyond these mandatory certifications, there is a separate category of credentials that, while not legally required, are seen as pathways to growth. These include ISO certifications like ISO 9001 (quality management), ISO 14001 (environmental management), or ISO 45001 (occupational health and safety). They can make your business more competitive, especially when tendering for contracts, but they also come with significant financial and operational costs.

This raises a key question for many New Zealand businesses, particularly SMEs: is an optional certification worth the investment if it's not a legal or tendering requirement? Some companies invest heavily only to see little return, while others gain access to new contracts and strengthen customer trust. The real question is not simply “Do you need certification?” but rather, “Which certifications genuinely add value, and how can you leverage them effectively?” At Josty, we help business owners make these strategic decisions, ensuring that certification becomes a lever for growth, not just a tick-box exercise.

The Two Faces of Certification

Compliance-Based Certification – The Non-Negotiables

Certain certifications are absolute requirements for a business to operate legally and safely. These include:

• Food Safety and Hygiene Certificates: Essential for any business handling and serving food.

• Liquor Licences: Required for hospitality venues that serve alcohol.

• Trade Registrations and Practicing Licences: Mandatory for professionals like electricians, gas fitters, and builders.

Failing to maintain these exposes a business to legal risks, fines, and even shutdowns. Business owners have a non-negotiable responsibility to ensure their company and employees maintain these certifications.

Strategic Certification – Optional but Influential

Other certifications are not legally required but can provide a competitive edge. These include:

• ISO 9001, 14001, 45001: Certifications that validate a company's commitment to quality, environmental, or health and safety standards.

• Industry Association Accreditations: Credentials from professional bodies that boost credibility and trust.

These certifications serve as external validation of a company’s professionalism and can be a deciding factor when competing for contracts, especially with larger clients who prioritize suppliers who meet specific industry standards.

Case Studies: When Certification Works and When It Doesn’t

The Positive Example – ISO 9001 Opening Doors

In a previous role, I saw first-hand the tangible impact of ISO 9001 certification. While the upfront costs and implementation were significant, the certification was a prerequisite for tendering for certain contracts. Without it, we wouldn’t have even been considered. The certification didn’t guarantee a win, but it gave us a seat at the table where our expertise and competitive pricing could be evaluated. The return on investment was clear and substantial.

The Negative Example – Certification Without Return

Conversely, I’ve seen smaller businesses chase certifications without fully assessing the potential return on investment. They might pursue ISO certification because it’s listed in a tender document, hoping it will unlock lucrative contracts. However, without the scale or resources to compete effectively, they secure little or no work. They are left with an expensive certification that delivers little practical value.

Framework for Deciding if Certification Is Worth It

Josty recommends a structured approach to evaluating any certification:

1. Regulatory Check: Is this certification legally required to operate in your sector? If so, it’s a non-negotiable.

2. Customer Expectations: Do your clients expect you to have this certification? If it’s a key factor in their purchasing decisions, it becomes necessary.

3. Market Access: Does certification open the door to new markets, contracts, or partnerships?

4. ROI Assessment: What are the costs (time, money, resources) versus the potential gains (higher sales, reduced risk, improved efficiency)?

5. Long-Term Strategy: Does this certification align with your business model and growth strategy?

Weighing the Pros and Cons of Certification

Advantages:

• Builds credibility and trust with customers.

• Differentiates you from competitors.

• Creates access to new markets and tenders.

• Enhances internal systems and quality control.

• Shows commitment to industry standards.

Disadvantages:

• High upfront and ongoing costs.

• Time-consuming audits and compliance checks.

• Risk of investing without a tangible ROI.

• Can become a “tick-box” exercise rather than a driver of real business improvement.

Josty’s Role – Guiding and Advising on Certification

At Josty, we are more than just consultants. We act as strategic advisors, helping businesses answer crucial questions: Is this certification essential or optional? Does it align with your growth strategy? How can it be leveraged to win new business? Our approach ensures that these decisions are integrated into your broader business model.

The next time you consider certification, ask yourself: Do you really need it? If the answer is yes, make sure it’s for the right reasons, and that it strengthens your business in the ways that matter most.