Business Growth Inhibitor: Compliance Issues
We’ve been discussing things which negatively impact business growth, and I would be remiss to ignore the issue of compliance. Often times, executives think of compliance as an issue which is taken care of yearly, with a variety of properly submitted forms and thorough paperwork. However, compliance goes beyond government regulations, and isn’t simply an administrative function.
You need to think more broadly about what all the stakeholders in your business need to achieve through compliance, and how you can help them.
You’re not the only business thinking about growth, your clients and vendors are too. As they develop growth plans, they are paying increased attention to their compliance requirements, as they know significant value can be driven through improved compliance processes. You should be planning for regulatory and stakeholder expectations and ensuring your business is ready for the evolution of compliance issues and how they impact your operations.
Compliance issues are troubling for any business, and anything you can do to reduce or eliminate compliance issues will lower your attrition rate.
Things to think about when considering your compliance environment:
- How can you enable a more seamless exchange which meets the government regulations, as well as theirs and yours?
- Is there a process you can change or a piece of software or technology you can use to automate functions, reports or information exchange between all the parties in your supply chain?
- How can you be more transparent in your business, and how can that transparency help those with whom you do business?
If you’re distracted dealing with regulatory issues, you’re not as focused on moving the business forward. If your vendors are struggling to do business with you, you will find prices increasing or service deteriorating. Finally, if your customers are suffering from you lack of control, they will start looking for places that are easier to buy from, and they will favor them, regardless of their tenure with you.
Compliance can either become a hindrance to your growth, or an opportunity for your business, so don’t ignore the importance of your regulatory environment when considering business growth.
Compliance needs regular attention from management, and inclusion in the annual capital planning and budgeting process, which will help ensure you’re staying ahead of any changing regulations and aren’t suffering the consequences or trying to catch up after becoming non-compliant.
My next post in the series will discuss business planning, and the importance of making plans across departments if you want to facilitate growth.
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