How to Adapt to Regulatory Changes Within Your Industry
If there’s one thing a business owner must know how to do well it going with the flow. The business landscape is constantly changing as a result of market trends, consumer demands, and regulatory requirements. While entrepreneurs have a choice of how and when new innovations or evolving consumer demands will change their company processes, when it comes to regulations set forth by local and federal government agencies, adapting to these changes is mandatory.
Whether its changes in the healthcare industry or new mandates for companies selling the best vapes, business owners and their management staff must know how to make the adjustments necessary to remain in compliance. Failure to do so could lead to fines, lawsuits, and a plethora of other negative consequences.
The question that many novice entrepreneurs have, however, is how do you adapt to these changes without allowing them to affect your brand or success? Below, are a few suggestions on how to manage and adapt to regulatory changes within your industry:
Identify New Developments
There is no big announcement disbursed to every business owner within the industry when there are new regulations, amendments, or laws developed. Essentially it is the responsibility of each entity to identify new developments that impact their industry and company processes. There are several resources available to entrepreneurs that can be used to keep track. Joining trade associations, sign up for free alerts from regulatory agencies and legal sources within in your industry, and/or hiring a regulatory compliance manager, law, or consulting firm to keep track.
Analyze the Changes
Once you’ve been made aware of the regulatory changes in your industry, these developments must be analyzed in-depth to have a clear understanding of how exactly it applies to and impacts your business operations. For example, if you happen to be in the vaping industry, the new regulations set forth by the FDA would essentially change who you’re able to sell to and where you’re able to advertise and sell your products.
You need to review these regulations in detail to determine what specific operations will need to change, which departments within your company will be affected the most, and what changes need to be made to your policies and procedures. While you can work with your management team to discern this yourself, it is often best to consult with an attorney or business advisor to help you make the most sound and efficient decision that also keeps you in compliance with new regulations.
Create a Plan
After analyzing the regulatory changes to determine how they apply to your business, you’re ready to begin creating new strategies to help your business continue to thrive. This plan should clearly define what actions need to be taken, who will be responsible for taking these actions, and how long it should take you to implement these changes.
Your strategy going forward needs to cover all basis. You need to ask yourself, in order to make the necessary changes, what needs to happen? Will it require you to train your existing staff, hire new staff, or change your marketing strategies? Do you need to communicate these changes to your target audience, clients, existing customers, or investors? If so, how do you plan on doing this? Again, a business advisor can be very helpful in creating a plan for implementation.
Communicate with Your Team
Your employees really are the driving force behind the success of your business. If they’re not made aware of necessary changes in company operations, it puts your business at risk. Therefore, after developing a plan of action and implementing new policies, procedures, and strategies, it is imperative that you educate your staff. Whether you hand out written materials, send out an email blast, or invest in compliance training, the more informed your staff is, the easier it is to make the necessary transition.
Put It In Writing
After creating a plan to implement the changes as mandated by the regulatory changes you need to put it in writing. Document the changes in all business materials including policies and procedures, rules and regulations, and training materials. You should also draft new documents and contracts if necessary.
The business climate continues to change as quickly as the wind blows. From technological innovations and market demands to consumer interests and regulatory changes, it is essential for businesses to keep track and make adjustments at a moment’s notice. To be a successful brand, you must take steps like those listed above to navigate the waters efficiently, make the applicable changes, and still appeal to their target audience.