Like any relationship, a business partnership comes with its fair share of ups and downs. When things are running smoothly, everyone is happy, and the business thrives. When things get sour, however, even the slightest disagreement can become a full-blown conflict that might hurt the business.
It is almost granted that a dispute will happen during the course of the partnership. And when a dispute arises, how you handle it will make all the difference regarding the future of your business. There are several options you can consider to protect your interests when handling a partnership dispute. Here are some of them:
Mediating the dispute
If you are caught up in a dispute with your business partner, you may consider resolving the matter through arbitration or mediation. The mediator will play the role of a neutral third party to help you find solutions to your differences. However, it is important to understand that mediation will only work if both parties are willing to participate in it. Done right, mediation can help you resolve a partnership dispute in a cost-effective and timely manner, thus, minimizing damages to the business.
Sometimes, an alternative dispute resolution approach may fail to work. In this case, you may consider suing your partner so the matter can be resolved in court. This is especially true if the business suffered a loss as a result of the conflict. While litigation may be a great method for resolving a partnership dispute, it is important to understand that it is often time and resource-intensive. Remember, it can take several months before getting a court date. Also, depending on the complexity of the matter, it may take much longer to arrive at a judgment. All these can potentially harm your business.
A partnership dispute can be a thorny matter for everyone involved. Find out how you can protect your interests while resolving a business partnership dispute.