3 Ways Legal Compliance Can Help You Grow Revenue
When people hear “compliance,” their eyes start to glaze over and their heads start to nod. It’s a common reaction, similar to having an ether-doused cloth shoved in your face. But if you knew what Adam Wardel, General Counsel at Simplus, knew about compliance, you might perk up and listen in, especially if you care about growing your revenue.
In an interview on our podcast, Revenue Growth University, Wardel explains that “compliance is the most overlooked component of revenue growth” — a tantalizing statement and a bold claim. “Specifically, we’re talking about legal compliance,” continues Wardel. “And typically people have no idea how it can benefit their companies financially.” This is true. Typically, legal compliance is looked at as something you have to do to stay out of trouble. Wardel, however, suggests a new perspective on the subject, which he explains by pointing out three important aspects that will open your eyes to the revenue benefits of compliance.
Management Training
People don’t really view management training as a compliance issue, but it is. When someone in middle or lower management does something stupid, it can cause a ripple effect throughout a company — sometimes all the way to the top. If managers are trained correctly, the company can avoid many costly and overblown lawsuits, not to mention the loss of productivity and attorney fees. “The two worst kinds of lawsuits are frustrated employees and family law,” says Wardel. “And the best way to grow revenue through compliance is to prevent unnecessary financial loss.”
Data Privacy
“Instead of approaching data privacy as a cost issue, Simplus approaches it with an attitude of wanting to be the leader in this particular area,” says Wardel. “Simplus has had many enterprise-level companies come on board because of our strict GDPR data privacy compliance.”
Wardel emphasizes that making your potential clients feel safe could be the one thing you need to tip a contract in your favor, for it has happened many times at Simplus. In fact, Simplus took home an award for GDPR compliance in 2018. “When you’re compliant,” continues Wardel, “you can say, ‘Do business with me because we’re not going to drag you into the oversites, the audits, and compliance issues. Come to us, and we’ll keep you safe from that.’ Being able to say that goes miles towards making more money for the company.”
Auditing
Typically, when companies complete their audits, they get filed away in a drawer or in an online folder with pleasure and forgotten about until the dreaded subject comes up again. “People pay consultants big money to come in and tell you how to make your business better,” says Wardel. “However, if you knew how to use the audit as a tool to make your company better, it could really change the way you look at it.” And you might actually use it to grow your company. If you can ignore stigmas attached to the IRS, regulating bodies, or compliance in general, and ask yourself, “How can this audit help my company grow?” you’ll start to see results.
By being compliant, companies can bring in more new business because of added security for the clients. Two paths lead to more revenue growth: one is saving money, the other is bringing in more because you are the leader in security. Take the challenge to change your perspective on how you view legal compliance today.
To listen to the full podcast click here.
