An entrepreneur must understand why it is necessary to follow government regulations in business. In fact, when starting a company, a hardworking person should research the industry before capitalizing on their idea. With this in mind, here are five highly regulated industries a new entrepreneur must be aware of if they want to succeed.
Payday loans: A payday loan company can offer clients a loan when they are in need of quick cash. Sadly, many companies charge their customers triple digit rates on their loans. Therefore, many state governments have enacted plenty of laws preventing these companies from existing in their locales. Other states, while allowing them to exist, have passed laws that essentially have put them out of business. While this should not scare off a potential investor, one must follow local laws in their area when looking to start a payday loan company.
Restaurants: When owning a restaurant, most owners will notice that both the city and county government will cripple them with regulations. For starters, most restaurants will still have to pay full minimum wage to employees while also following hundreds of other employment regulations. Not only that, there are hundreds of regulations concerning the storage, serving and cooking of food. While this should not scare of a potential investor, a serious entrepreneur should realize how hard it is to run a profitable restaurant while following all the local and state laws.
Biological storage: Pharmaceutical companies need to store some of their items in a safe and secure way. Unfortunately, old material and substances can cause serious environmental problems and can become a target to thieves and people wanting to do harm. For this reason, the Biological storage industry is highly regulated at both the local and federal level. While this is annoying to some, it provides opportunities for a hardworking entrepreneur who wants to take advantage of the growing pharmaceutical industry.
Insurance: While an insurance business can be highly profitable, there are plenty of downsides. For starters, governments all around the country do everything in their power to prevent a company from achieving a huge profit. Furthermore, after a large disaster, some companies will see their profits go down as states will cut the rates of an insurance company to help citizens. Without a doubt, while an insurance company can see huge profits, a person who fears government rules and regulations should consider another business.
Trucking company: When running a transportation or trucking company, one will notice that there are plenty of regulations concerning the hours and working conditions of drivers. Furthermore, a truck driver must follow plenty of rules regarding the transportation of certain materials. Coupled with laws about transporting goods across state lines and a smart entrepreneur may consider starting another business. However, the rewards can be excellent as a well-run trucking company that follows all the laws can make plenty of money and stay in business for decades.
There are plenty of regulations in business. Sadly, most entrepreneurs deal with this all the time and must think of creative ways to deal with government agencies. However, when running these companies, one can take advantage of other factors and make a lot of money. Remember, many will be turned off by regulation and will often seek other opportunities, and this allows a person to exploit this.