Mistakes To Avoid When Settling Small Business DisputesOctober 24, 2016 5:49 pm Leave your thoughts
Small businesses aren't just threatened by competition or shifting market forces. Serious disputes among the founders can tear fledgling companies apart if they aren't properly managed. Many small business owners are unfamiliar with how to best approach these negotiations, especially if they are between close friends or family members.
Here are some guidelines for handling a small business dispute, as well as some mistakes to avoid.
- Get on the same page: The first question both parties should ask themselves is, "Are we arguing about the same thing?" Just like in our personal lives, sometimes professional arguments can break out when one party is really angry about something else that they aren't mentioning.
- Keep everything in writing: People who start businesses with friends and family members often make the mistake of making too many oral agreements and not enough written ones. It makes sense, given that they are going into business with people they trust. However, this trust can quickly fall by the wayside if one party thinks he or she is being cheated. Make sure clear records are kept for every decision that gets made so they can be referenced in the future.
- Don't rush to court: There are many alternative methods of conflict resolution available to small business owners, such as arbitration or mediation. These will allow you to meet with a third party and come to an agreeable solution. While the results of arbitration are legally binding, mediation is not, and requires the participants to come to an agreement they can stick to.
Are you looking to start your own business in Arizona? The Law Offices of Donald W. Hudspeth, P.C., have years worth of experience guiding entrepreneurs through the formation of new businesses. Call us today to learn more.
Categorised in: Dissolution & Partnership Disputes
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