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  Sometimes, the survival of businesses depends on the sort of regulations that govern their space. If the rules are favourable, they could spur growth in the sector. But if they’re too difficult or stringent, they may stifle enterprises and cause widespread decline.
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Over the past several decades, we’ve seen the effects that tough regulations can have on whole industries. In certain instances, they have delivered long-term wins for the broader economy. At other times, the outcomes have been a net negative—including the demise of thousands of businesses. How should entrepreneurs react to difficult regulations? There are as many answers to this question as there are rules that need to be understood. Each situation comes with unique challenges, so reactions have to be specific. But there are general steps you can take to navigate the uncertainties that arise in the wake of tough business regulations.

Steps You Can Take To Get Through Tough Regulations

If you are currently trying to wade through problematic rules around your business, here are some steps you can take to resolve the situation:

Know What The Rules Actually Say

A lot of the time, reports concerning a new regulation are misleading. Sometimes this happens because many people haven’t understood the regulation. In other situations, the media misrepresents the relevant facts. That’s why you should find out what the law says for yourself. It’s better to get a direct handle of the rules than to get it from a secondary or tertiary source. Remember: the quality of information you’re working with may determine your ability to respond appropriately. Thankfully, several corporate consultancies publish easy-to-read summaries of these legislations soon after they’re introduced. They are often available online and can be accessed for free.

Work With A Lawyer

You may need to engage a lawyer if the regulation in question is opaque, or if there’s no easy workaround for it. Legal practitioners typically understand the text and implications of the law better than the regular person. They could help you gain clarity where it’s currently lacking.
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Go for a lawyer who’s trained or experienced in corporate regulations. They are more familiar with the business environment and how laws can affect it; their opinions could be very useful. They will also suggest ways that you can adjust your operations so that they don’t contravene the law.

Join Forces With Other Local Businesses

Authorities may not entertain your concerns if you present them alone. They are more likely to respond if you’re doing so as part of a large group of businesses, such as an association or chamber of commerce. Admittedly, the government doesn’t always change its regulations when businesses urge it to. But it may allow some flexibility within its rules. Sometimes this is a good enough win for the businesses concerned. Associations could even influence the shape that the final legislation takes if they communicate their views to authorities before the bill becomes law.

Adapt To The New Normal

How this plays out will depend on the nature of the regulation, and the resources you have at your disposal. We have already mentioned the role that a legal adviser could play here. They could suggest the steps you should take, and even find ways for you to benefit from the rules. You may also need to hire for new roles within your business and roll back some previously existing ones. Hiring, terminations, and reorganizations may have to be planned and discussed with the parties involved before they’re implemented. Review the technologies you use in operations that are affected by new regulations—payroll, financial reporting, production, packaging, marketing, etc. Make sure they can work in line with the law.

Final Words

Adapting to changing regulations can be tough. But you don’t have to break under the weight of the process. Follow the steps we have laid out here, and you’ll have a better chance of surviving—and even thriving –in the altered environment that new rules create. Featured Image Source: Forbes
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This article was first published on 26th April 2021

ikenna-nwachukwu

Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.

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