Understanding legal terms can be tricky and complex, especially for business people just starting to learn about the implications they have on day-to-day operations. One such term is “variance,” and it is incredibly important that you learn what it means and how it can affect your business.
What Does Variance Mean in Legal Terms?
In the legal world, “variance” is a term used to describe a deviation from an established law, regulation, or process. This could refer to an exception granted to one party, or could refer to a larger change in how the law or regulation is applied to a given situation.
For example, a variance could be granted to a business from a local zoning ordinance, allowing the business to open in a location that wouldn’t otherwise be possible. The variance could include specific provisions, such as limiting operating hours or limiting the number of employees.
How Variance Can Impact Your Business
For most businesses, especially those operating in highly regulated industries, variance can have dramatic impacts. A variance granted to one business could mean a competitive edge – but could also mean additional compliance burdens that could cost time and money.
In addition, variance could result in a shift in regulations or laws that could impact your business in a positive or negative way. For example, a variance granted to one business could result in that business not having to comply with a particular regulation or law, placing a disadvantage on all other businesses in the same category. It is important to understand and keep track of potential variances that could impact your business in both the short and long term.
Understanding Variance Is Essential for Business Success
Variance is an important concept to understand for any business operating in a legal environment. While there can be benefits to variances, it is essential to understand the implications of a variance so you can plan accordingly. Any changes to regulations or laws can have an immense impact on your business, so staying up-to-date with the legal landscape is essential.