5 Tips For Preventing And Managing Business Disputes
/We have all heard about well-known companies sued for mega amounts. When running any type of business, problems involving another entity will almost inevitably arise at some point, whether you are a one-man-band or a large corporation.
A business dispute is a disagreement of any type between two businesses, the most common of which happens with clients, suppliers, contractors, and/or business partners. These disputes are usually related to signed agreements and the belief that the terms of those agreements have not been adhered to. This could be anything from a time frame not being met, goods or services being sub-standard, or the amount paid for the goods or service not being in accordance with the originally signed agreement.
Once an agreement has been signed and entered into, both parties have contractual obligations to fulfill their duties by following the terms therein. If either party neglects to do this, problems will most certainly arise.
In addition to disputes that arise over substandard goods or services, disputes between business partners can also end up being a rather costly and disruptive affair. They may create permanent damage to business relationships, resulting in seemingly unsolvable conflicts, which can then result in costly litigation, or at the very least, skilled mediation and negotiation.
All of these scenarios can result in a large expense, inconvenience and disruption to your business, as well as possible damage to your reputation. It is, therefore, always best if this type of conflict is resolved in a swift manner and outside of a courtroom. This is not always possible, however. In such instances, you may need to consult a business dispute lawyer to seek a resolution.
So, how can you try to avoid disputes in the first place? Here are some simple, seemingly obvious, but often overlooked points to consider:
Make sure your company policies and procedures are clear and that any agreement entered into is in writing before supplying or purchasing goods or services. The terms should include a clear description of said goods/services, payment details and time frames. An agreement should be signed by all parties before the commencement of service/supply.
Read contracts thoroughly and make sure you have a clear understanding of the terms before you sign. If you do not fully understand any of the content, you should seek correct legal advice before signing to avoid any possible future dispute.
Make sure you are organized and keep all copies of signed agreements in a safe and secure place.
Create good relationships with your clients, and be sure to respond promptly if any issues arise. Sticking your head in the sand will only exacerbate the problem, so act fast and nip any potential issues in the bud.
Having well-trained staff is of huge importance when it comes to customer care and complaints. Develop a complaint handling process that staff can refer to so that any complaints are dealt with in a professional and appropriate manner.
With an average small business earning $1 million per year and spending $20,000 on lawsuits each year, you can see why it is imperative to have all the proper safeguards in place to ensure the smooth running and longevity of your business.
Maintaining a strong company culture is essential for fostering a positive work environment, enhancing employee engagement, and driving organizational success. Every aspect of a company, from its values to its physical environment, plays a role in shaping its culture.