Florida business owners know that no business gets smooth sailing all the time. Every business runs into a snag sooner or later. For many, this snag may involve clashes with other parts of the business. This can include the supply chain, business partners or employees.
How do you handle these clashes when they happen? What should you do? There are many methods of conflict resolution in business. Today, we will focus on mediation and why it is important.
What is mediation?
Entrepreneur defines and discusses mediation as it relates to business management. Mediation is the act of working out a solution between two clashing parties. A neutral third party is often brought in to aid with negotiations and discussion. They listen, ask questions and help make decisions. Their word is not law, but their suggestions are open for any party to use. Both parties share the expenses. The resolution involves a written agreement that settles the dispute. It is not final or binding.
Businesses and their connections
Why do so many businesses turn to this method, then? In short, connections are the life blood of a business. You do not know how bad one broken relationship may hurt you. You do not want to burn bridges if you do not have to. Mediation is often used when businesses or partners with a long history get into a dispute. This allows everyone to avoid a lawsuit, which would sour the relationship.
For many, litigation is a last resort. Mediation is one of the first tools you can try. If you are in a dispute, consider utilizing mediation before anything else.