Business owners fear many things, such as lack of sales and problems with cash flow, and another thing many fears are government regulations. The reality is there’s no telling what new regulations will mean for small businesses. Some regulations can be challenging to deal with, but others can make things better. New regulations could mean any of the following things.
Additional Costs
New regulations could mean additional costs for small business owners. They may have to let something go so that they can pay for these new costs. Scrambling to bring their business up to the latest codes and regulations can put companies in a financial bind. Small companies may already have a revenue problem, especially if they’re just starting, so new regulations could make it hard to operate normally as they worry about satisfying what the federal or local government wants from them. This is why certain regulations may annoy small business owners, and some fight regulations if they seem unfair.
Franchising Challenges
Small businesses may have trouble franchising because of regulations. For example, a home care nursing agency in New York might be subject to different regulations than one in Virginia. This reality makes it hard for small businesses to expand. It should be pointed out that it affects small businesses even if they’re just trying to open up a new location in a county next to them because they might have varying regulations to obey.
More Inspections
New regulations can also be unpleasant for small businesses because of longer or more frequent inspections. Small business owners have to deal with inspectors regularly, but they may have to deal with them more often with new regulations. Businesses understand inspectors are vital for various reasons, such as safety. Good companies work to ensure their businesses do the right thing, but an inspector’s presence may upset the business flow a bit. New regulations give these people more reasons to come knocking on the doors of folks trying to remain open and service the community.
Competition Control
Small business owners may not like new regulations, but there’s another side to this. New rules and regulations may help some businesses, especially if their competitors have a more challenging time adopting new regulations. On top of that, new regulations can also delay some new businesses from opening or getting started, which helps more established small businesses. It may seem bad to think this way, but the reality is that competition is a real thing, and every slight edge a small business can have over other businesses can help. Business owners are already dealing with enough, so this could help them stand up a bit taller, at least for a while.
Protection
Some entrepreneurs see bureaucracy as a pain, but they’re usually there to help everyone stay safe. Without regulations, some businesses might overlook various issues, some of which could put lives in jeopardy. While most businesses owners only want to do what’s suitable for their communities, they can overlook things they shouldn’t. Maybe they ignore a building issue because they had a hard month, or perhaps they are planning on fixing something, but they want to wait for the right moment. In that time, accidents could happen that could put people in danger. New regulations are new ways to keep businesses and the public safe, which is a good thing. It may not be something small business owners want, but these regulations are helpful.
Now, you know what new regulations mean to small business owners. It’s a strange mixture of good and bad. Plus, there’s nothing small business owners can do but continue to comply or risk fines or much worse.
