When multiple people run a business together, conflicts are likely to arise. Fortunately, there are many ways to resolve disputes between business partners.
Learning about the various options for handling disagreements can help business owners navigate difficult situations and serve the interests of their company.
Preventing conflict
By carefully crafting documentation, business owners can prepare for disagreements and legal issues before they arise. A company’s contracts and partnership agreements can define responsibilities and obligations for various individuals. Furthermore, internal documents can establish clear procedures for resolving conflicts. In addition, fostering an open workplace culture that values honest feedback can help companies prevent disputes and develop solutions early.
Negotiation and mediation
When business partners are in conflict, they can use negotiation to reach a resolution. Although some business owners choose to negotiate issues directly, some situations can benefit from the assistance of legal professionals. By allowing lawyers to help negotiate a dispute, business partners can manage the emotionally-charged aspects of a conflict and seek a mutually amenable solution.
The mediation process can help owners resolve business disputes as well. In mediation, a third party oversees the proceedings and facilitates discussion between parties. Mediation can reduce tensions between owners. Additionally, a skilled mediator can help develop new documentation to enforce the resolution of the dispute and prevent future conflicts. Furthermore, mediation is less costly and time-consuming than litigation in court. When possible, business owners should consider negotiation and mediation before pursuing litigation.
From negotiation to mediation, business owners can employ a range of conflict resolution strategies when disputes occur.