Starting a recent business is like stepping into an adventure that you simply know will change your life endlessly. You’re filled with ideas, filled with energy, and ready to alter the world. But as any entrepreneur will let you know, the road to success is strewn with challenges. It’s not only the start-up costs. Sure, that’s a major concern, but it’s not the only one. Believe it or not, the most difficult part could be staying compliant with industry regulations.
It’s no secret that regulatory compliance might be a huge headache for startups. Regulations and requirements appear to pile up faster than dirty dishes after dinner. And while compliance is key, it often falls by the wayside when you’re attempting to keep the lights on and your online business moving forward. So what’s really holding startups back from being fully compliant in their industry?
Starting with the complexity of the regulations
One of the biggest culprits here is the sheer complexity of industry regulations. So, depending on your industry, there could also be local, state, national, and even international regulations you have to follow. And let’s be honest, those regulations aren’t exactly written in plain English.
As a startup, this complexity might be overwhelming. You attempt to build something recent and progressive, but you run into a wall of legal jargon that makes you ponder whether you’re even allowed to sell your product in certain markets. As you almost certainly guessed, deciphering these laws requires time and knowledge, and often a lot of cash — all of which are resources that the majority startups lack.
Basically, you are expected to know all the things about it before you begin your online business, but at the same time, running a business is a learning process, right?
Limited resources
Speaking of resources, let’s talk money and manpower. Startups are notoriously lean. You’re working with a small team, and every dollar is stretched to its limits. That means you almost certainly don’t have a dedicated compliance officer or legal team at the ready. Instead, you’re wearing multiple hats, attempting to juggle product development, marketing, sales, and, yes, compliance.
But compliance is not something you possibly can afford to disregard. One flawed move may end up in hefty fines and even legal motion. Although yes, having a team of lawyers and consultants and using regulatory compliance software This could all be easily fixed, but there is a lack of resources.
The problem is that when you’re a startup, you’re more focused on survival than the rest. You’re hustling to get your product to market, attract customers, and generate revenue. In the fight to remain afloat, compliance can appear to be a luxury you just can’t afford.
In a sense, it’s a no-win situation: you need to comply with regulations, but compliance is expensive, but you have to run your online business, but you possibly can’t run your online business if you do not comply with industry regulations.
Keeping up with changing regulations
Even if you do manage to know the industry regulations, there’s no guarantee they’ll stay the same. In fact, the regulations for most industries are always changing. Governments and industry bodies often update regulations to reflect recent technologies, emerging threats, and changing market conditions. For a startup, maintaining with these changes can feel like chasing a moving goal.