On a daily basis, businesses run into a
variety of obstacles on the road to
profitability. One of those obstacles could be the government, which controls
the regulatory landscape in which a business operates.
But government can be as much an
enabler as it is an enforcer, says Jonathan
Bryant, an associate with Taft Stettinius &
Hollister LLP in Indianapolis, who concentrates his practice in business and finance,
government practice and real estate.
Businesses should devote as much time to
seeking out government programs that
could help them as they do searching for,
say, favorable tax treatment.
Smart Business spoke with Bryant about
how a business can improve its chances of
navigating the regulatory landscape and
coming out unscathed.
Is the stereotype of government as a mindless bureaucracy true?
Forget the stereotype. If a business owner
finds it convenient, or even necessary, to
work with the government, the owner
would be well advised to take a more progressive approach instead of grousing.
Business owners routinely put themselves in other people’s shoes — ‘What
products or services will my potential customers buy?’ or ‘How will my competitor
try to gain an edge on me?’ — to solve
problems. It’s helpful to approach interactions with the government from the same
perspective. The same business owner is
unlikely to have regular dealings with any
particular agency, but that agency is likely
to have regular dealings with similar companies. So what may be a unique, even
troubling, situation to the business owner
is probably not unique from the government’s perspective.
Also, keep in mind that government is as
much an enabler as it is an enforcer. Most
successful business owners have probably
put a great deal of energy into finding creative solutions to negative tax consequences. But not as many have put as much
energy into discovering programs that can
benefit their businesses, such as earning
certification as a minority- or woman-owned business enterprise, obtaining grants, tax credits and abatements, finding
their way onto preferred vendor lists, or
seeking out awards and recognitions.
What is the easiest way for a business to
know its government and how the government affects it?
Web sites for both the Internal Revenue
Service (IRS) and the Indiana Secretary of
State’s Business Services Division present
technical information in a user-friendly
manner. Often, five minutes on a Web page
can save significant amounts of time.
Since luck is not an effective long-term
strategic plan, finding answers involves
knowing where to look. From zoning to
workplace safety, multiple layers of government affect business and, within each layer,
there are usually multiple levels of guidance.
Statutes and ordinances provide the framework, regulations add detail and informal
guidance provides helpful insights.
Once the business owner has a solid idea
of the regulatory landscape affecting his or
her business, the owner can make more
informed decisions on how to conduct
business in a manner that maximizes
opportunities from the government and
minimizes adverse consequences.
How does a company go about changing
government rules for its own benefit?
This process will take some time and a
company’s chances for success depend on a
variety of factors. For example, an agency’s
policy may be easier to change than a state
statute, or the political climate could make
the government hesitant to consider a different direction. In any event, a business will
need to invest time and resources communicating with the appropriate official, learning about the reasons behind the obstructing rule and educating the official about the
negative impact of the rule on the company’s business. A cooperative approach will
lead to more positive results.
Recently, technological advances made it
feasible for a telecommunications company to deploy cable television service to customers, but federal statutes coupled with
state delegation allowed local government
units across the state to adopt varying regulatory schemes that worked as an impediment to the company’s entry to the market. By working cooperatively with state
and local officials, the company persuaded
officials to support legislation that created
a uniform, statewide regulatory approach
that removed the market-entry barrier.
What are the advantages of having a government relations go-to person?
Without relying on internal staff and outside professionals experienced in the
industry and government practice, the previously mentioned telecommunications
company probably would not have been
successful in its efforts. It can be difficult
for busy executives to stay current on the
company’s regulatory landscape. As a designated government relations professional
works with officials at government agencies, those officials will become familiar
with the company and grow accustomed to
working with the company’s government
relations person.
JONATHAN BRYANT is an associate with Taft Stettinius & Hollister LLP. Reach him at (317) 713-3458 or [email protected].
