Most businesses I know aren’t very involved in politics. This is particularly true for smaller businesses that may not have the time, staff, resources, or bandwidth to follow changes in policy while working hard to run a business.
One of the problems is that following politics and policy changes is hard and takes time. There is no single source that will give you a full picture of what’s going on. Changes happen constantly and from all directions. There are changes on a local, state, and federal level. There are changes with each of the three different branches of government: executive, legislative, and judicial. There are changes from dozens, if not hundreds of agencies and government bodies, like the EPA, Federal Reserve, IRS, and Social Security Administration. The list goes on and on.
Not only is it hard to know what changes could be affecting your business, but even if you do discover an issue, trying to do something about it can be like pushing a boulder up a mountain. There is no easy number to call at the EPA, legislature, or IRS, to learn who to talk to when you have an issue. Often you are left on your own trying to find someone, somewhere to help you with your problem. It’s frustrating, and it takes up the time and precious resources that should be going towards running your business.
But I am here to tell you that despite all this, if you run a business, you can’t afford to be a political bystander. You are risking too much. The simple and terrifying truth is that a wrong decision from a legislature, a local zoning authority, or a court can jeopardize your entire business. It can take away your license to operate, it can make the cost of your goods so high, you can’t make a profit anymore. The wrong decision can end your business.
So what are you to do?
Well, some companies have incredible amounts of money to throw at tracking and influencing government bodies. They have tens, if not hundreds of people employed at the company who focus solely on that. They dedicate millions, if not hundreds of millions of dollars tracking new policies, responding to changes in policies, and proactively changing policies in ways that can benefit their business. This is unrealistic for most companies.
The good news is that efforts of that magnitude are not usually necessary, and that no matter how big or small your company is, there are simpler and less expensive things you can do that offer a “big bang for your buck” when it comes to protecting your company from policies coming down the pipeline.
First, what industry are you in? Is it banking? Do you run a bar or restaurant? Do you manufacture products? Whatever you do, there is almost certainly a state and federal trade association that tracks and influences policies in your industry. For most of those trade associations, membership costs vary substantially based on the size of a business, so they are accessible and affordable to small and large businesses alike. Find these trade associations and join them. They will offer incredible resources and enable your voice to be heard when you have concerns that a policy is going to negatively affect your company.
Second, think strategically about what agencies impact you. Who issues your permits? Who in the government makes decisions about how you run your business? What policies impact you the most? Once you identify those things, take simple steps to stay up to speed. Set Google alerts so you see news stories. Read the media outlets that covers these groups. Follow Twitter accounts from people who are experts on those topics. Then you will know when things are happening and who the movers and shakers in these areas are.
Finally, get to know the elected officials who represent your area. Most of the time they are quite accessible. They attend breakfasts, dinners, and community meetings, and they want to know their constituents and the issues affecting them. So get out there, meet them, and get to know them before you have a problem.
Your company probably can’t afford to have a 100-person government affairs team. And that’s okay. The vast majority of businesses don’t need that. But in today’s world, every business will encounter a time when something the government does will impact them in a very big way. Do the little things now that will enable you to address the big issues when they come. Because even if you think you can’t afford to follow politics – what you can afford even less is losing your whole company (and everything you worked for) because you remained a bystander.
Katie Johnson Treadway is the Head of Regulatory Affairs at One Energy.
