Business owners should understand that disputes simply exist as part and parcel of the business world. No matter how you run your business and how carefully you try to avoid disputes, it is often inevitable that something will happen someday. The important thing is understanding how to handle these disputes when they arise in a simple and effective manner.
Avoid burning bridges
FINRA examines the potential options you have when working to resolve a dispute. First, understand that you do not need to turn to litigation right away. In fact, if you can avoid it, you likely should. Litigation costs a lot of time, money and effort for all parties involved, including you. This could serve as a financial shot to your own foot.
On top of that, litigation will often burn your bridges and ruin any chance at salvaging your business ties. Of course, as a business owner, you understand just how important these ties are. You do not want to be closing doors left and right when you could keep them open.
Popular litigation alternatives
Instead, consider two popular alternative methods: arbitration and mediation. Arbitration serves as a close alternative to litigation, in which an arbitrator presides over your case. They listen to all evidence and testimony from each party and then make a legally binding decision which you must all follow. However, you do not need to go through the traditional courtroom process.
Mediation allows you to solve the problem on your own, with guidance and advice from a neutral third party. While the mediator cannot make a legally binding decision for you, they can offer a unique perspective that can help you get through the argument in a faster, smoother way.