The pressure is unrelenting on many businesses to distinguish themselves from their competition. Differentiate or die is the mantra for those entrepreneurs looking to gain a lead over others in the marketplace or risk withering away. In many situations, prospects and clients will have little to base their decisions on before choosing which business to engage, and that paradoxically opens up opportunities to both educate and to deceive.

License/Certification

For some businesses, there is little necessary preparation that is mandatory before one can actively solicit customers or clients. The cost of entry for opening up a retail store, pursuing a business as a calligrapher, or shooting portraits for families vacationing does not include a demonstration of mastery of any legal standards of performance. While those businesses are very competitive and one must have strong skills to succeed, there is no formal recognition from a governing body recognizing one's course of study or preparation required to start a business.

On the other hand, certain businesses do mandate that the proprietor and/or employees have formal training and be regularly tested or attend continuing education in their chosen field of expertise in order to maintain their ability to legally sell their products and services. Some of those requirements include:

Proof of hygienic conditions for places serving food

Successful completion of a course of study - beauticians, plumbers,

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massage therapists, insurance or other financial instrument sales, etc.

Professional degrees or certifications - MDs, Attorneys, Accountants, etc.

At minimum, these degrees, licenses, and certifications serve to protect the public in general and customers more specifically from encountering businesses that cannot meet agreed upon standards of knowledge, skill, and performance. While the possession of a certificate does not guarantee that the business will perform as expected, it does at least serve to reduce the opportunity for those without skills, proper training, limited experience, etc. from fraudulently claiming expertise where none exists.

Trust in Process

The prospect approaching a business in an effort to have the business perform work may do the appropriate due diligence and ask to see proof of licensure or ensure that certification is current. However, there is a certain leap of faith that must occur that is not even related to whether the license is legitimate or has been received through inappropriate means. The license or certificate states that the person in possession of it has skills or knowledge across a wide variety of areas, but that does not automatically equate to expertise in the area that the customer is seeking. While it may be a somewhat tongue in cheek example (at least I hope it is, and is not a reality), when we go to physician in pursuit of relief from a sore throat, we are accepting that the diploma on the wall from a reputable medical school ensures us that the physician knows how to correctly diagnose and prescribe for our needs. Yet, do we know if perhaps that physician excelled at digestive issues, but respiratory issues were a weakness, or if blood disorders were a strength, but sore throats befuddled the physician?

Perhaps an example that might be easier to see is now that there are a whole crop of recent Driver's Ed graduates on the roads - how few can competently parallel park, yet they are deemed sufficiently capable of driving to have earned their licenses. The analogy to business certifications and licenses are similar in that there is no certainty that the license holder is expert at the exact issue the prospect seeks - and is one of the reasons why consultants have argued over the appropriateness of being licensed. Rather than define what constitutes appropriate breadth and depth of skills, many consultants and their associations would rather speak to the difficulty of doing so and list all of the exceptions to the rules - and not work to narrow those even further.

So, even when there is a license and the business has been properly certified to conduct the tasks of the business on behalf of customers, it is still advantageous to think of it in terms of a buyer beware transaction.

Advertising/Marketing

In the effort to differentiate a business from competitors the use of marketing and advertising will often make mention of licenses or certifications - panel trucks advertising the contractor's license number are designed to give a potential customer a sense of comfort and confidence that the contractor is a recognized professional and adheres to at least a token amount of oversight to ensure competence. However, there has been an unseemly side of purchasing of credentials that were not earned, or flat out claims of degrees never completed, and experiences never achieved of late that has escalated as of late.

One radio talk show occasionally interviews a recurring guest with the same guest provided introduction each time that touts of her academic preparation as an Engineer (not only she is not an Engineer, she did not complete college, and in fact, never attended college!), experiences working with companies that have never hired her, and claims of expertise that exceed her own. What she is quite proficient at is marketing herself - though doing so unethically is not worthy of admiration. If it were not for me knowing of her through a contact outside of the radio program, the endorsement of the radio program would have successfully led me to assume that she is as she presents herself - much to the potential detriment of any future project that requires someone that truly has the background and experience and not just someone who claims it unearned.

Another encounter similar to that one included a man who had worked in new construction his whole working life as a framer of new buildings. With the downturn in new construction, he recreated himself as a former foreman and electrician. Unfortunately, he claims this without having ever done either job. Because of his glib nature and confident approach, he has managed to secure employment with some unsuspecting builders - but one can only hope that nothing ever goes wrong as a result of a mistake made by him or anyone else that defines him or herself as something they are not.

When competing, the temptation to overstate one's skills or capabilities can at times be great in order to secure a piece of business. How we define ourselves to the market can be a difference maker between success and floundering, and while it would be naïve to think that the marketplace won't eventually catch on - there are enough short term gains to be had that encourages the unsavory to push the envelope further and further down the path of exaggeration to the boulevard of lies. Both of these are streets that ethical business people should avoid at all times of the day.

David Zahn is a serial entrepreneur and consultant to Fortune 100 businesses (www.zahnconsulting.com) as well as entrepreneurial startups (www.startupbuilder.com).

The opinions expressed are the author's and not necessarily those of connpost.com. Please direct comments to cdauber@ctpost.com.