It is essential that business owners familiarize themselves with ever-changing rules and regulations at every level of government. This applies to businesses of any size, whether they be a small corner store, mid-sized retail establishment or a company that employs hundreds of people.
There are regulations at every level of government – local, county, state and federal – sometimes overlapping. These rules and regulations can help or hurt your business. For instance, a deli that pays no mind to meeting sanitary requirements or fire code regulations will learn the critical importance of playing by the rules the hard way, via a hefty fine and perhaps having to shut their doors for an extended period of time, which could mean financial ruin.
There are also upsides to being on the ball. Businesses that do not keep a vigilant eye on regulations may miss new or amended laws that could increase profits. For instance, a new regulation may result in your business spending less time on submitting paperwork to governmental entities, enabling increased productivity and profit.
Constantly monitoring potential changes is especially significant in 2025. New federal administrations tend to very quickly add, revamp or do away with certain regulations. Especially on the federal level, potential changes to regulations that could affect businesses run the gamut, including the energy, labor, tax, healthcare, financial and small business sectors.
Be on the lookout over the next year and beyond for regulatory changes that could impact your profits. Think about energy policy, labor regulations involving overtime and unions, and trade laws.
Tax law modifications could very well help your business. Lowering taxes is a priority for every incoming administration. Business tax incentives, tax deductions for small businesses and a simplified tax code are among the many potential means by which one of the two certainties of life can substantially boost revenue generation. Even lower interest rates aimed at the public for other reasons can trickle down to increased business.
By being aware of changing regulations, business owners can proactively defend themselves from fines and other, sometimes harsh, penalties. At the same time, proprietors can be quick to take advantage of beneficial rule changes as early as possible.
Another significant factor in staying in the loop on compliance responsibilities is knowing what rules take precedence when there are seemingly conflicting sets of regulations at varying levels of government. Do not assume that state law supersedes federal rules, or the opposite. The answer can vary depending on the regulation.
Ensure that someone in your company is constantly monitoring regulation changes. In addition, be aware of your responsibilities regarding employee rights, environmental regulations, consumer protection laws and regulations specific to your industry.
Knowing the rules will help prevent punitive measures, and perhaps even legal action, by those who say that you are denying their rights under the law. There are a myriad of rules, regulations and laws that could be gold or daggers to your company. Changes, perhaps drastic, very well may come into play soon. Pay close attention; what you don’t know can hurt you.
