7 TIPS ON WHAT TO DO WHEN SMALL BUSINESS DISPUTES HAPPEN WITH YOUR BUSINESS PARTNER

7 TIPS ON WHAT TO DO WHEN SMALL BUSINESS DISPUTES HAPPEN WITH YOUR BUSINESS PARTNER

Running a business has a lot of benefits but it is extremely demanding at times. It comes with a great deal of responsibilities and countless risks, especially when employees are hired. A great way that most people like to mitigate the many pressures is by entering into a partnership. Working with partners has its own advantages and disadvantages. A dispute among the business partners does not have to bury the business under the carpet. Certain measures can be taken to resolve such disputes. They are as follows:

1. REVIEW THE WRITTEN AGREEMENT: To prevent and resolve business disputes the written agreement is a very essential ingredient. It provides an operational structure to the company so that decisions can be taken without any dispute. Depending on the type of business, it can either be a partnership agreement or a shareholders’ agreement. These agreements help the partners to solve disputes relating to responsibilities, additional capital, split of debts and profits etc. The partners can refer to the agreement or amend it to solve their issues and disputes smoothly.
2. PREVENT DISAGREEMENTS: One of the basic necessities of a business partnership is to choose a partner wisely. If one has a far-sighted and knowledgeable partner, half of the disputes are already solved as it prevents frequent disagreements among them. In simple terms, one should choose a partner who has the same thought process as there’s and can contribute in the development of the business equally. There are certain subjects which are known to cause disputes beforehand. Such issues should be avoided and prevented by formulating an agreement accordingly.
3. LISTEN ACTIVELY: In an argument between the partners, listening to each other is a key to solving the dispute. It is very important for each partner to listen to the views and opinions of the other partner as they matter equally. Learning to listen and cooperate can ease a lot of ongoing tensions among them as it makes each of them feel heard and hence cools their temper automatically.
4. SEEK BUSINESS NEGOTIATIONS AND MEDIATION: Mediators are well trained professionals who can resolve disputes with the process of mediation.  It is  a confidential process and nobody except the two parties are involved. The third party, i.e. the Mediator, provides a solution that is favourable for both the parties equally. Alternative Dispute Resolution (ADR) provides an impartial mediator. However, if the decision of the mediator is not satisfactory for both the parties, they can hire a colleague or a friend who knows both of them and will negotiate and provide a neutral solution.
5. ENGAGE A BUSINESS DISPUTES LAWYER: When a dispute is not resolved by any mediator or arbitrator, a business dispute lawyer can be hired to provide an excellent service. Interpretations of financial obligations as per the written agreement are catalysts of disputes among the partners. The business disputes lawyers can interpret the obligations for them and provide a solution impartially. He can set out the rights and obligations for both the parties.
6. HANDLE BUSINESS DISPUTES WHEN THEY HAPPEN: The disagreements and disputes among partners have certain perks as well. It helps them to identify issues which they might not have presumed and allows them to find a solution for the same to strengthen their business. However, these issues can also have an adverse effect on the relation between the partners and can lead to draining of efforts and energy. Hence it is extremely important to have a great mutual understanding so that small disputes do not cause huge problems that can damage the development of the business.
7. BUSINESS LITIGATION: If none of the tips work, then business litigation remains as a last resort. It is a time-consuming and an extremely expensive process. While the other methods do not put the business reputation at risk, litigation involves going to court. It does not guarantee a positive outcome and may not keep the business intact. This might lead to the business losing its goodwill and trust among the clients, customers and investors. So, before finalising and entering into the litigation process, the partners should think through it thoroughly and make sure that the court decisions will not hamper the growth of the business and will provide the solutions they seek.

In a world of disputes, the ones who prosper and thrive in this world of cut-throat competition are the ones who have aced in the fields of man-management and cooperation. The prime responsibility of a business partner when a minor or major dispute takes place is to take things maturely keeping in mind the years of relation, cooperation and support that have been offered during their tenure as partners. Every successful business needs an extra pair of hands for it to run successfully. As the famous saying goes, Rome was not built in a day, it is not possible for a business and the relationship of their partners to grow to a pulp in a fraction. Small disputes, minor disagreements and clash of ideologies are a part and parcel of running a business hand in hand and should not affect the final and binding relation that is shared between the partners.

BY:-

Ridhika Kapoor.