As a business owner, one of the most important things you can do is prioritize your business relationships. After all, these ties form the basis of your business and will determine the rate of your healthy growth.
Is it possible to avoid litigation when conflicts arise and / or these business relationships fall apart?
Arbitration and mediation
Fortunately, it is. Even if you find yourself involved in a dispute with other parties, you can still save litigation as a potential last resort. Instead, you can look into other methods of resolving your issues.
FINRA examines common alternative dispute resolution methods. You can take a look at these instead of leaping directly to a court date. Arbitration and mediation make up the two most popular options, with arbitration serving a similar purpose to litigation and mediation offering something more free-form.
With arbitration, all parties present their evidence and arguments. An arbitrator then examines all items and makes a decision, by which all parties must abide. By comparison, mediators do not have this same power. You do not need to follow their advice or suggestions, but they can help you and the other parties work through your disputes together and come to a solution that all parties can agree on.
Salvaging business ties
What you choose will depend on the nature of your disagreement and the willingness of all parties to compromise or work together. Regardless, you want to do all you can to salvage your business ties so as to avoid a black spot on your reputation and a court record of the drama.
