No business is immune to disputes, especially in form of disagreements between business partners. When these disputes arise, it is important to take steps to resolve them as quickly and efficiently as possible. Litigation should always be your last resort.
Streamline or improve communication
You and your business partner should have a clear understanding of roles and responsibilities within the company. Furthermore, you should maintain open communication channels and keep each other updated on business developments. For instance, you might establish weekly or monthly check-ins.
If possible, avoid communicating via email or text message as these can be easily misconstrued. Instead, opt for face-to-face meetings and video or voice calls. Also, remember to document all important discussions. By improving communication, you can avoid many forms of misunderstandings that often lead to business disputes.
Draft a clear contract
If you haven’t done so already, draft a contract that outlines the business relationship between you and your business partner. This contract should include provisions for dispute resolution. Having a contract in place will help to prevent misunderstandings and business litigation down the road as well as provide a roadmap for resolving disputes should they arise.
Use the golden rule
In all business dealings, try to treat others as you would like to be treated. This includes being honest, transparent and fair. If you find yourself in a difficult situation, always try to see things from the other person’s perspective. For instance, if you’re negotiating a business deal, try to reach an agreement that is mutually beneficial even if it means making some sacrifices.
It’s also important to avoid getting personal when business disagreements arise. If emotions start to run high, take a step back and try to resolve the issue in a calm and rational manner.
It can be difficult to keep business relationships amicable, but it’s important to try. By following these simple tips, you can avoid business disputes and keep your business running smoothly.