Governments require businesses to trade freely, however the Government also seek to regulate how the trade is performed.
Now, I work with some great companies who are led by inspirational individuals who demonstrate excellence in their sector. But the Paradox, Government and big sector members seek to supress the growth by requiring regulation or unreasonable standards.
Regulation
Tax, employment, health and safety, etc., but those inspirational leaders and business owners don’t have those skills, so the mediocre “Professional” services get involved.
The issue is always the same, the small business doesn’t have the resources or the basic skills in regulatory matters to hold the Professionals to account.
The management of tax is one of the worst areas, accountants advise on how to pay as little as possible, yet paying tax on gross profits is a brilliant sign for contracts. The idea that you save money by claiming every possible allowance is seen as a saving, the reality is the business loses access to higher value contracts.
Regulation isn’t design to help small business, it is used to restrict growth, this means when a company hits a ceiling they become commercially viable to purchase.
Regulation is designed to keep the global players ahead of the game, they avoid the regulation and have the power to ignore the regulators.
Solutions
Don’t just sign up for Professional services, get some training first, know what you should be getting and know what you want from an accountant, solicitor, health and safety and quality consultant.
The biggest issue is when the fat hits the fan it was never their fault, the regulator is quite right in saying that a business owner should have known. So as you hit the milestones where regulations apply, get the training before you buy a professional service so that you can ensure you are meeting the standard.
The Paradox? Regulation and regulators should level the marketplace, the reality is distortion.
Here is a very basic example – a personal carer is a family member and has provided the care for years unpaid, however, the local authority agrees the Direct Payment is appropriate, so you decide to pay your carer. Sounds simple, and it is so long as you understand the difference in the relationship, you are now the employer and specific regulatory factors now apply, Insurance, Payroll, Job description, contract of employment and holiday pay.
So the message today is before you take the next step in your business development make certain you have accessed the training in the regulatory requirements. Stress comes from mistakes
