As a business owner, the last thing you want to do is get tangled up in a business dispute. However, these are an inevitable risk of doing business with other people.
The most important thing to keep in mind when handling a dispute is the fact that you want to preserve business ties where you can. But why is this so important?
Why preserve your ties?
Business ties hold great importance due to the fact that they are the lifeblood of a business. Without good ties, what platform does a business have? This is why it is crucial to avoid things that might make a dispute worse, such as a long legal battle.
FINRA compares arbitration and mediation, two alternative methods of resolving disputes that do not involve taking a case to court. These options allow you to skip the wait, skip the cost and avoid a court case which will result in a public document of your dispute that any member of the public can request and read.
Arbitration vs. mediation
Arbitration offers the closest replacement for litigation of these options. In it, an arbitrator acts in a similar capacity as a judge, listening to all sides present arguments and passing down a verdict that the parties must abide by.
Mediation offers more wiggle room and is best suited for those who feel they can work out their problems on their own, with a bit of extra help. The mediator cannot make decisions for the group but can offer suggestions from a unique perspective and give their opinions.
This helps preserve business ties, which allow your business to continue flourishing and reaching even farther.