No one looks forward to business disputes, but they are an unfortunate part of running a business. Sooner or later, you will get into a situation where you and another party (or parties) disagree on something.
In these instances, how you handle the dispute can change the outcome a fair amount. Thus, if you intend to opt for mediation, you should understand how it works.
Mediators vs. arbitrators
FINRA discusses the differences between mediation and arbitration. Mediation offers a lot more wiggle room for the parties in question, thus it is often preferred by people who believe they can manage a conflict with very little oversight.
You should know that a mediator does not have the legal power of an arbitrator or judge. This means they cannot make a decision for you and enforce it legally. You and the other parties involved in the dispute have to work out a conclusion on your own.
What mediators offer
However, mediators do offer great guidance when it comes to getting to that conclusion. They can ensure that everyone has an equal amount of time to speak and say their piece. They also ensure that no arguments get out of hand and can reduce tension and conflict.
On top of that, they offer unique third-party opinions and perspectives that no one else involved in the dispute has. Because of these factors, mediators prove a valuable tool for those going through business disputes. They serve as a good option to consider when weighing how you want to approach the situation.