Disputes between business owners are not only common but also inevitable. No matter how well you get along with your business partner or partners, sometimes you disagree on something. It could be a minor issue, like what color to paint the office, or a significant problem, like whether or not to expand the business.
Whatever the disagreement may be, it’s essential to handle it in a way that is efficient and effective. Otherwise, the dispute could cause problems within the business and potentially damage relationships between the owners. Here are a few things you can do:
Try to resolve the issue yourselves first.
This may seem like an obvious solution, but it’s often overlooked. If you can sit down and talk through the disagreement, you may be able to come to a resolution that everyone is happy with. And most of the time, this is the quickest and most effective way to handle the issue.
For example, if you disagree on the color to paint the office, take some swatches and see which colors each of you likes. By working together in this way, you can create a space that both of you can be happy with.
However, if talking informally isn’t working and the matter is much more serious than just painting color, you can set up a more formal meeting with everyone involved. This will give each party a chance to present their side of the story and hear from others in an organized manner. By having everyone in the same room and discussing the issue, you are more likely to find a resolution that works for everyone.
If you can’t resolve the issue yourselves, bring in a mediator.
A mediator is someone who is neutral and can help facilitate a conversation between the parties involved in the dispute. This can be an effective way to reach a resolution without going through formal legal channels.
For instance, if you and your business partner are having a disagreement about whether or not to expand the business, a mediator can help by listening to both sides of the argument and guiding you through the conversation. This way, everyone can express their point of view and be heard without it escalating into a fight.
It’s also important to keep in mind that a mediator is not a decision-maker. They are there to help facilitate the conversation and offer suggestions. Still, they cannot make any decisions on behalf of either party.
If all else fails, consult an attorney.
If you’ve tried to resolve the issue yourselves and with a mediator but still can’t come to an agreement, then you may need to consult an attorney. They can advise you on your legal options and help you determine your situation’s best course of action.
Specifically, a professional would be of great help if you consider contesting a power of attorney. This legal document grants control of business decisions to one or more individuals and challenging it can be a long and complex process. A lawyer can advise you on how best to proceed and represent you in court if necessary.
In addition, an attorney can also help you draw up agreements and contracts that will protect everyone’s interests in the case of a business dispute. This way, all parties involved have a written document to refer back to and know where they stand regarding rights and responsibilities.
Consider an arbitration agreement.
Arbitration is another process where a third party listens to both sides of the dispute and decides based on the facts presented. This can be faster, cheaper, and less time-consuming than going to court. It’s important to remember that it isn’t always possible to use arbitration in business disputes, so you should consult an attorney or mediator to ensure it is a viable option.
An arbitration agreement, which outlines how the process will work and who will be involved, should be put in place beforehand. This way, all parties know what to expect and understand their rights during the arbitration.
Moreover, an arbitration agreement can also help you avoid costly and lengthy litigation down the line. By agreeing to use an arbitrator in the event of a dispute, both parties are legally obligated to resolve the issue through this process instead of going to court.
Write down all agreements reached.
Once you have settled on a resolution, it’s essential to write down all agreements that have been made. This will ensure that everyone involved is aware of the terms and obligations of both parties and that there is a record of the decisions made.
For example, if the resolution is that one of the parties must pay a certain amount to the other, it should be written down and agreed upon by both sides. This way, if there are any misunderstandings in the future, everyone will know what was decided and who is responsible for following through with their obligations.
Additionally, it’s important to regularly review your agreements on business ownership disputes to ensure that all parties agree with the terms. This will ensure that any changes or updates can be addressed quickly before they become a major issue.
No one likes being in dispute, but unfortunately, it’s something that all business owners will have to face at some point. The most important thing is to maintain a level head and try to handle the situation efficiently and effectively. If you do that, you’ll likely reach a resolution that works for everyone involved.