Initially, starting a business with a partner seemed like it was a good idea. You both share a vision and common goals and the combination of your respective resources were necessary to provide your company with a solid foundation. But now that things have gotten off the ground and your business is growing; it seems as if you and your partner seem to have more disputes than agreements.
Though undesirable, disputes are common in business partnerships and are often a challenge to resolve. Learning how to take care of disputes promptly can help prevent help to preserve your company’s reputation, finances and time.
Get to the heart of the matter
Many disagreements between partners and other business affiliates involve misunderstandings, ranging from the timeliness of deliverables, compensation, etc. Try to determine the cause of the partnership dispute as soon as possible. If the issue is not clear, ask your partner directly and have them put it into writing.
Consider mediation or arbitration
If you and the other person are unable to resolve the dispute, you may find it easier to have a neutral third-party mediate over the resolution process. Mediation is a low cost and an informal option that may also help provide privacy. Any agreements that occur from mediation are not necessarily legally enforceable without court intervention. The mediator’s sole duties are to listen, communicate and help get a favorable resolution for you and the other party.
Arbitration is another avenue you may use to resolve partnership disputes. Arbitration agreements are legally binding. Arbitration is often a last resort option before litigation.
Implement a dispute resolution strategy to refer to anytime conflict between you and your business associates arise. Depending on the nature of the problem, you may find it beneficial for you and the other party to negotiate better terms to resolve the problem.