As a business owner, your number one priority is the growth and success of your business. Of course, to succeed, it takes more than just one business person. You rely on your connections, employees and more to continue growing, expanding and finding success.
This means that disputes between partners can have potentially catastrophic effects. What is the best way to handle these disputes while limiting the amount of overall damage they can cause?
Why is litigation problematic?
FINRA discusses multiple alternatives to litigation, including mediation and arbitration. It is best to try these alternative methods when possible because litigation serves as a very problematic solution. Not only is it expensive for all parties involved, but it also nearly guarantees that you will permanently ruin your relationship with the other parties in the dispute. As a business owner, cutting any ties permanently can have a ripple effect that might do you more harm than you imagine.
On top of that, when you take a case to court, the general public has access to the details of said case. This means that any prospective customer or enemy can look at all the information brought forward in the case, some of which you may consider personal and things that you do not want to share.
How do alternative resolution methods help?
In these instances, arbitration or mediation allows you to avoid the biggest pitfalls. For example, you can avoid going to court, dealing with a jury or needing a judge. This saves time and money, protects your personal information and can even preserve the relationship between you and your business partners.