As a business owner, it should always be a top goal to stop arguments and disagreements before they can evolve into full-on disputes. But you should also understand that disputes are an unavoidable part of business ownership.
Rather than believing or hoping that you will never run into one, you should instead expand your toolbox when it comes to dealing with them. This can save your business relationships and help you get through the process more smoothly.
Why do you need dispute resolution options?
FINRA looks into the importance of alternative methods of resolving disputes. Alternative options are crucial because of the potential havoc litigation can wreak on your business ties. Business ties serve as a huge point of importance for any business owner, as your ties to your partners, employees and customers serve as the backbone for your entire company. Severe your ties and you will have a lot of problems selling products and services.
The potential impact of litigation
Litigation is a surefire way of severing these ties, unfortunately. It costs a lot of money, takes up to months or even years and will likely leave all parties feeling bitter and wronged in some way. This can go on to impact all of your other shared business relationships, and you may even lose customers who side with the other parties in the dispute. Not to mention, any case that goes through litigation becomes public knowledge, and anyone has access to the records.
To avoid these issues, consider mediation or arbitration. Both serve as successful alternative options to litigation, depending on how much structure and guidance you need. Contact legal aid to learn more about either.