When going into a new partnership or a new business endeavor with someone else, the last thing you want to do is consider what actions to take in the event of a dispute.
However, disputes are an inevitable part of any business path, especially with people who work with unknown factors like other companies or individuals. So how do you deal with them when you come across them?
Arbitration and mediation
FINRA talks about mediation and arbitration. These are two of the most popular methods of resolving disputes that manage to stay out of the court system. They are prized for that reason, as they allow you and any other party involved to skip the time commitment and financial needs of a court case.
Arbitration is more similar to litigation. An arbitrator holds similar power to a judge. They will listen to all sides present their facts and evidence, and then make a decision based on this. Every party must abide by their decision.
Mediation, on the other hand, does not involve the mediator making decisions on behalf of the involved parties. Instead, they offer their opinion and advice, and it is up to the parties involved to decide what they want to do with it.
Preserving business ties
This is also a great way to preserve business ties. Litigation often ends with bridges entirely burned due to the time and money commitment involved. Using one of these alternative options generally helps keep tempers low, opening the chance for further collaboration in the future.
This is of crucial importance because the health, wellness and future growth of a business depends largely on the connections it has.