As a business owner, you understandably prioritize the safety and health of your business above all else. But to ensure that your business really grows and flourishes, you need to put your business ties and consumer base before anything.
Thus, you should have a detailed plan about what to do if you end up getting into a dispute. After all, disputes are a natural part of owning a business. You cannot always stop them, but you can always decide how you want to deal with it.
The issues with litigation
FINRA lists a number of potential alternatives for dispute resolution. First, why do you want to avoid litigation? Simply put, it is a huge time and money sink. On top of that, it also likely destroys any chance you have of patching things up with the other parties. Going through litigation is an intensely stressful and costly procedure and no one is going to come out of it feeling friendly.
Sometimes litigation is the only option, though. For example, you will likely want to litigate if your case deals with huge sums of money or expensive assets. But what if that is not the case for you?
If so, you can consider some alternative resolution methods. For example, arbitration acts like litigation in that an arbitrator fills a role similar to a judge. You present your arguments and evidence to them. They examine everything and come to a conclusion. They then hand down a binding decision which all parties must adhere to. But it does not require a court date or a jury.
Mediation is also an option. A mediator cannot make legally binding decisions, but they can offer advice and guidance as you work through your issues with the other parties.