To business owners, ties with customers, suppliers and other businesses make up the very foundation of their world.
To that end, one of the worst things a business owner could deal with is serious damage to ties in the form of disputes. How can this damage be minimized, and why should it be?
The risks of litigation
First of all: why does a dispute put business ties at risk? Of course, disputes happen at different levels. One dispute might be easy to resolve, another could use a little elbow grease and guidance. Others still might be catastrophic and completely ruin a business relationship from the start.
However, any dispute has the possibility of ruining the business ties behind it due to the risk of the dispute going to court.
Taking a case to court is not just an expensive and time-consuming process. It also violates the privacy of every party involved. Court cases always keep public records, which any person can request access to. This puts everyone’s public information on display.
FINRA looks into different methods of preserving business ties through alternative dispute-solving options. This allows parties to avoid going to court, instead opting for methods of resolution like arbitration or mediation, which do not involve the expenses, time commitment or privacy issues that court cases have.
Why preserve business ties?
But why should business owners care so much about their ties, anyway? As mentioned, the ties of a business form the basis for its success. Every burned bridge could come back to haunt a business in the future, so it is always best to manage these instances as safely as possible for the sake of the business’s future.