Operating a business without a legal compliance strategy? That’s like driving a car without brakes. It might work for a while. But sooner or later, things are going to go sideways. And when they do…
The cost is enormous.
Businesses pay an average of $15 million every year to cover the financial losses associated with legal non-compliance. That number includes fines, lost revenue, legal fees, and reputational damage. The kind of PR disaster that wipes a company off the map overnight.
Legal Compliance Strategy is NOT Optional
The sad truth is that most people in business think legal compliance strategy is all about covering your butt for when a lawsuit inevitably pops up.
But legal compliance is so much more than that.
Legal compliance protects your business, your reputation, and your customer relationships. It keeps the doors open and your investors calm. It even gives you a competitive advantage in the marketplace.
We’ve put together a list of the must-have strategies and key areas you need to be aware of, if you want to stay compliant and competitive.
What you’ll discover:
- Why Legal Compliance Matters More Than Ever
- The Biggest Compliance Challenges Businesses Face Today
- How To Build A Rock Solid Legal Compliance Strategy
- Top Compliance Areas Every Business Should Focus On
Why Legal Compliance Strategy Matters More Than Ever
85% of companies are saying compliance has increased in complexity over the past three years.
And that’s a problem for everyone.
The fact is that the rules are changing all the time. Like constantly. New state, federal, and even local regulations are coming out on a seemingly weekly basis now. That puts enormous pressure on businesses to keep track of them all.
The good news is that you don’t have to be an expert in all areas of law. Having expert legal support for businesses in Pittsburgh is the gamechanger here.
With a good business lawyer on your side, you have a professional keeping track of all the changes for you.
One person who only has eyes and ears for this specific job.
The Biggest Compliance Issues Businesses Face
The short answer? Too much change.
The business landscape is moving fast. Things that were considered best practices two years ago? Still a good start now, but hopelessly out of date for a business looking to thrive and lead.
Businesses are under pressure on every side. Consumer expectations are rising rapidly. Inflation is on everyone’s minds. And just keeping up with the day-to-day operations becomes a project in and of itself.
And then the rules start shifting underneath your feet. Who has time to do that, too?
How To Create A Rock Solid Legal Compliance Strategy
All the theory in the world isn’t going to help if you can’t actually do it. The good news is that most of this is just common sense, albeit with an expert in your corner.
Know What Matters for Your Business
Different businesses have different legal requirements. A healthcare company is in a different regulatory world than a restaurant or a retail store.
Knowing what matters for you is the first step in building an effective compliance strategy. Your lawyer can help with this. They should have a good idea of which legal areas have the most relevance to you.
Document, Document, Document
Good policies and procedures are worth their weight in gold. They are what clearly separate companies that “know the rules” and those that are rock-solid in following them consistently. Written policies help your team in a lot of ways, not least of which is compliance.
Train, Train, Train
Nobody ever got into trouble for following company policy, right? Wrong.
The worst offenders are the companies that create policies and then just file them away. No one ever looks at them again. You know a policy is not working when nobody can find it.
Audit, Audit, Audit
This one is closely related to the last. If you don’t know if everyone is following policy, how will you know if the policy works? Regular audits are the cure for that problem.
Partner With Legal Experts
When in doubt, call the lawyer. There’s nothing sneaky here. But a lawyer isn’t there to pick fights with your business partners or clients. They are to help you be your best self in the eyes of the law.
Top Compliance Areas Every Business Should Know
Your specific legal needs will always depend on exactly what you do and where you do it. But some compliance areas matter for just about everyone.
Data Privacy
Breaches are expensive. The average data breach in 2024 will cost you over $4.8 million. That’s before you pay your lawyer and fines from the FTC. Companies that collect customer data have an obligation to keep it safe.
Employment Law
The rules here seem to change weekly now. Wages, minimum wage, work-from-home policies, rest breaks, and so on are just a few areas you need to stay compliant with.
Tax and Finance
Tax laws are constantly changing, and there are a lot of them. Payroll, corporate taxes, sales taxes, withholding taxes, and more. Plus, there are strict financial reporting and public records requirements on top of that.
Contracts
Contracts are the glue that holds all the businesses together. They are also full of obligations and requirements you have to keep. These are legal documents, so understanding what you sign and agreeing to is crucial.
Summing Things Up
Legal Compliance Strategy is not optional.
In fact, it should be one of your biggest priorities as a business owner. The complexity is ramping up every year. Not just in your area, but in all areas of law. Having expert legal support is the gamechanger here.
With a good business lawyer on your side, you have a dedicated professional keeping track of all the regulatory changes for you. One person who only has eyes and ears for this specific job.
Don’t wait until you’re being audited. Reach out now, and a lawyer can help you get ahead.