These are a few strategies for solving disputes as a small business owner.
The first, and most successful method of solving disputes as a small business owner is prevent the disputes from ever happening.
This can be done by hiring an experienced business attorney to draft all the business’s contractual agreements. Attorneys can add clauses that address common business disputes within the contracts to prevent, minimize or resolve disputes. One such method is to incorporate mandatory mediation into the contract.
Mediation is when a dispute is resolved using a neutral third party, often a retired attorney, who will hear both sides of a dispute and then make a decision that both parties agreed to abide by. Mediation typically takes a few hours, whereas, litigation can take months. Therefore, it’s not only an effective method of dispute resolution, but it’s also a more affordable option, especially for small businesses that cannot afford to take time away from their work.Mediation is helpful in many ways. Businesses can plan to budget for that expense, they can control how fast or slow the process goes, and it ends with a result that’s typically agreeable to all parties involved. It’s also less formal that a courtroom which not only reduces the stress of all parties involved, but it keeps the lines of communications open. It can actually improve business relationships. Therefore, it can help keep a small business’s reputation from being destroyed. Mediation also lends itself to more unique solutions. A judge may be legally obligated to resolve an issue in a particular way, but a mediator can be more open to creative and unusual solutions that fit a small business better.If the disputes are too complex, another option for small business owners is to use arbitration. Arbitration is similar to court, but slightly less formal. Instead of a judge and jury, the case is heard by a panel of arbitrators who make a judgment and award to one of the parties involved. Arbitration can be a quicker and less costly option than litigation, but it also can be as slow and costly depending on the case. It really depends on the individual case involved.The goal of a small business is also to keep the company running and making money. Disputes can interfere with this goal and that’s why it’s important to prevent the disputes from happening to begin with. Consulting with a business attorney can help you draft strong contractual agreements to protect your business and reputation as well as to keep the general peace.[formidable id="7" title="1"]