Many disputes can arise in a closely held business. Income, control and decision-making authority are amongst the most commonly contentious issues faced in these businesses. If you don’t know how to properly navigate them, then your business operations can suffer, and so, too, can your business relationships. As a result, you could end up facing diminished market share and profitability. So, what can you do to avoid these outcomes?
Using mediation to resolve internal disputes in a closely held business
One way to resolve the tension you’re experiencing in a closely held business is to engage in alternative dispute resolution, like mediation. Here, a neutral third-party helps you and other parties to the dispute frame the issues, facilitate meaningful dialogue and craft fair and favorable resolutions that will hopefully put the matter to rest.
That said, it’s still imperative that you develop a strategy going into mediation. While the mediator will help spur conversation over the topics at hand, you still have to be prepared to advocate for yourself. Therefore, before sitting down for your mediation, you’ll want to have evidence to present that supports your position and be ablet to state clearly articulable goals. You’ll also want to anticipate what the other side will say so that you’re ready to counter their assertions. You also need to be flexible if you want to find resolution, so think through where you’re willing to give a little to gain in other areas of the dispute.
Don’t let a business dispute end your closely held business
All too often closely held businesses end up closing shop because those within the business can’t resolve their differences. Sometimes that’s the only option. Sometimes it’s the best option. But before getting to that point, you should fully consider other paths of salvaging your business and your relationships. If that’s something you’re interested in exploring, then we encourage you to continue reading up on alternative dispute resolution options that are available to you.