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Business regulations change with the tide.
They are affected by a number of factors that range from societal to economical and everything in between. They are about as evolutionary as society itself, and that can be a lot to keep on top of.
However, regulations and restrictions in business are important to keeping a sustainable business. Not complying with them can result in a lot of negative effects for your business, including loss of profit, loss of reputation and even loss of business entirely. Keeping on top of regulations is one of the most crucial aspects of running a business.
If you’re wondering where to start when it comes to keeping up to date with your compliance, take a look at our guide.
Every industry, and by extension every business, will have its own unique set of problems to overcome. When it comes to regulation and restrictions industry regulations differ wildly. A hair salon is not going to come across the same regulations that the service industry has to deal with, and they are not going to face the same issues that the gaming industry has to handle.
If you are running a business, you will have to dive deep into your industry’s regulations. It won’t be enough to know the broad strokes. You will have to know the small things that could cost you in a lawsuit or loss in profits. People sue companies for forgetting to put out a wet floor sign, so it won’t be enough to just know not to accidentally kill any customers.
Attend conferences, online or in person, to learn of new changes in your industry. Create a team and consistently review your internal practices to ensure that they adhere to regulatory changes.
There are levels to regulations, industry, national, international, etc. If your business is going overseas, you will need to research the regulations and restrictions your chosen countries enforce and adapt your business to adhere to them.
For example, if you are running a gambling site, you will have to keep track of what countries legalize gambling, and which don’t. Going even deeper, some countries allow for accessing sites but not creating a gambling business. Then there are the different advertising and safety regulations from country to country.
There are a number of factors that could influence regulation changes, as mentioned. Everything from politics to world events to advancements in technology and science can have an effect on regulations. Keeping informed on the events in the world can prepare you for regulation changes that might be coming your way.
A good place to start is the finance and business sections, which regularly print about industry-wide regulation changes, but cast your net wider to be prepared. If your business isn’t international yet, keep an eye on your home politics page. Suggestions for laws and bylaws designed to improve society could affect your regulations. A big example is Brexit, which had a lot of businesses rethinking their trading.
World events can also cause regulation changes. The obvious example is Covid. It has pretty much affected every area of life now, but the service industry in particular. Where once you had to make sure the kitchen was spotless and the serving area clean, now the entire premise needs to be spotless with multiple hard cleanings throughout the day.
If you are keeping your nose in the news, you won’t be blindsided when a new regulation is introduced and perhaps you can prepare.
Bhumesh is the Managing Partner of Corp Comm Legal, an Indian law firm. He is ranked among the Top 100 Indian corporate lawyers. He is advising domestic and foreign companies on M&A, joint ventures, corporate - commercial issues. Besides, he has written a book on Drafting of Commercial Agreements, has a couple of books in pipeline and trains students and professionals on Drafting Skills and corporate laws. He writes regularly on legal, business & other issues and is a guest faculty lecturer with educational institutes. Bhumesh holds a Bachelor of Laws (LLB) from the University of Delhi and a further qualification in International Law and Legal Studies from College of Law, York.
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