To Survive the Economic Turmoil You Still Need to Be in Regulatory Compliance

To listen to the media and politicians we are approaching the end of the world caused by a complete international economic collapse. As an employee, I could worry about my position, layoffs, the possibility of having to get a new job, paying my bills.

As a business owner, I get to worry about the viability of my companies, the welfare of my employees and being able to continue servicing my customers. Cost cutting has to figure in the scramble to keep myr balance between business, employees and customers.

The obvious first expense cuts will be those areas that do nothing to advance the bottom line. Regulatory compliance does have a cost. It is sometimes tempting to gamble that I won't get caught in noncompliance. It is possibly true. The chances that I will be targeted by an agency seem small.

Unfortunately, this economy creates situations that increase the likelihood that our companies will fall victim to the consequences of noncompliance.

As the economy worsens, the government coffers shrink. It has been announced by the new administration and the legislature that regulatory investigations will be on the rise. More money has been allocated to the agencies involved and pressure has been applied to the bureaucracy to insure a greater level of adherence. Fines are increased and the motivation to increase the treasury by means of regulatory fines grows.

Added to that is the commitment to boost the number of regulations. Promises have been made to increase the regulatory burden on the part of American business and more regulations mean more infractions and more fines.

The second danger to business due to regulation is that of the courts. As more people feel frightened financially, more seek to remedy that fear by means of lawsuits. The defense industry sees the ballooning number of suits filed whenever the economy has a down turn. These challenging times are no exception. Attorneys and activists are searching for (even advertising for) complainants on whose part they can file suit. As the number of regulations grows and the infractions become more and more esoteric, the creativity of the plaintiff attorneys grows. All it takes sometimes is checking out a website to find fodder for a claim.

So what is the solution? Find the cheapest, easiest way to develop and maintain the systems that insure compliance. Do the cost analysis for outsourcing versus in-house help with your regulatory issues. Sometimes it is necessary to do it yourself. Sometimes it is cheaper to pay someone else. You only have so much time and often it is better used marketing or directly caring for your customers. Use your time to your best advantage.

Secondly, be committed to the systems that guarantee compliance. Make it part of the culture of your company. Include your employees in the steadfast adherence to safeguarding your company. Regulatory compliance can sometimes be about safety, or access, or fairness, but it is always about guarding the company that you have built and worried over and put your life's blood into. If you are not protecting what you have worked so hard for will it matter if the economy makes surviving the economic turmoil we are riding through more difficult? It is a little like not carrying car insurance because you are a good driver and you gamble that you will not have an accident. The missing piece is the other drivers and the vehicular behavior beyond your control.

Cut the cost where you can. Educate yourself on the ways to ride out this chaos. But continue to defend business. Continue to bring your company into regulatory compliance.

Karen Dennison is helping small business comply with state and federal regulations. For you free regulations checklist, visit http://www.icancomply.com