As a business owner, you will undoubtedly run into disputes sooner or later. As much as you try to avoid them, it is inevitable when working with so many different people.
Even if you cannot avoid all disputes, you can still decide how you will handle them. In this way, you can limit the amount of stress and difficulty you face.
Avoid burning bridges
FINRA takes a look at alternative dispute resolution methods. Litigation is what people often refer to or think of when they discuss “taking someone to court”. It is a viable option and in some situations, it is the best option. But this is not always the case. Litigation costs a lot in time and money. Not only that, but you will likely burn your bridges with whoever you are up against.
Arbitration and mediation
As a business owner, burning bridges is one of the last things you want to do. You can thus turn to alternative methods of resolving your issues, like arbitration or mediation. Arbitration is similar to litigation in that you take your case to court. An arbitrator oversees it, and makes a binding decision based on the evidence and testimony provided. But you do not have to go through the whole trial process, so it saves time and money.
Mediation involves working your issues out among yourselves, with a mediator acting as a referee to ensure everyone gets their say. They may offer suggestions or solutions, but they do not have power to make a legally binding decision. Thus, this option works best if the dispute is not too serious or involving high assets. In the end, it is up to your discretion to decide which option suits your situation.