As a business owner you’re probably tied-up growing your venture and making sure you’re fulfilling your customer’s expectations.
However, it’s crucial for you to keep up with all the regulations to protect your business and understand what may happen if you’re non-compliant.
What does “legally compliant” mean?
Business compliance or being legally compliant refers to a company meeting its legal obligations, often to protect the health, safety and welfare of others, all while making sure the company acts appropriately.
The laws and standards your business should adhere to will vary depending on a range of different factors, such as what type of business structure you have, your industry or where you do business.
The importance of compliance is more evident as your business grows and your responsibilities expand. Examples of compliance include obtaining a business license in your town, paying your taxes or rules regarding discrimination and harassment in the workplace.
Why being legally compliant is important?
The most obvious but nonetheless important consequence of compliance is to reduce legal issues such as fines, penalties, lawsuits or even business closure.
But, being legally compliant has benefits beyond just avoiding legal problems. In fact, regulations can help you more than harm you, and understanding them will help you take advantage of any benefit they offer, while ensuring you are compliant at all times.
For example, many business compliance rules have been designed for protecting employees. The more employees feel they work in a fair, professional and safe environment, the more likely they will be to stay with you, leading to higher employee retention.
How do you make sure you’re compliant?
Firstly, be familiar with the regulations in your industry. This can seem boring but it’s vital for protecting your business. Successful entrepreneurs know their industry guidelines and try to be aware of any changes affecting their business activity.
It’s also important to find out what type of records and other documents should be generated and maintained by your business, and to conduct an audit with a legal expert to make sure they are updated.
Another tip for ensuring compliance is to change your company culture. As a business owner, you’re the leader of your firm, and you set the example for others. If you show that you don’t care about compliance, then no one will.
Include policies and procedures in your staff handbook that mirror your legal compliance obligations and ensure their application.
Understanding all these regulations and documents can be challenging so it is important to consult with a lawyer to make sure your business is legally compliant.
If you’re unsure about being legally compliant or need legal advice, book a consultation with our legal team and we’ll guide you through every stage of your legal needs.