Businesses Can Capitalise on Government Compliance

Anthony Eldridge

Author: Anthony Eldridge (Eldridge Data Systems)

 

 

Too many small businesses don’t monitor the effects of Government Regulations on their market place and forget to reassess their position in the market when compliance requirements change.   In my experience most changes to Regulation that govern business activity simply result in a limit to Supply into the market, regardless of the product and/or service. 

Recently I worked through some changes in the Transport Sector in regards to Fatigue Management regulations.  Without boring you with the details, essentially the regulations took away about 20% of the available hours in which a driver could work and imposed restrictions on the hours between midnight and 6am for the first time ever.   

My clients saw the cost of complying with these regulations but they forgot to look at how these regulations actually impacted their whole sector.  The impact affected the whole market and limited Supply.  Demand would not change so the change was a good thing for trucking companies.  We just needed the industry to capitalise on the changes by increasing their retail prices appropriately.

It’s important for you in small business (or while looking to be in small business) to be aware of Government compliance issues within your sector.  Make sure you become involved with industry groups or associations who monitor and advise on changes to regulations that may impact your business.  The more you understand about government regulations and restrictions in your sector the more you will understand what changes you and your competitors’ will need to make to your price point when changes occur. 

The one good thing about Government Compliance is it affects your competitors too so always be prepared to adapt to changes in regulation and establish a way to pass on new costs to comply.  Don’t be afraid that your competitors will be not reacting, because they need to too.  And, If I had any advise, it would be, don’t wait until regulations change to educate your clients about the likely impact it will have to them, educating them early is a ‘service add’ and allows your clients to look at their costing too so they can pass on the new costs as well.

Keep on doing what you do, but remember the goal of being in business is to ensure you succeed financially, don’t get tied up by the lifestyle, it’s about making money.  Enjoy what is yours to come.

Anthony