How To Avoid Litigation And Resolve Disputes Effectively: Strategies For SMBs

This is a collaborative post

When it comes to legal matters, SMBs need to be careful. Small mistakes can often lead to big bills. 

For this reason, it’s critical to put a dispute resolution strategy in place. But what, precisely, should you be doing? Let’s take a look. 

Look For What’s Causing The Conflict

The first step is to take a look at what’s causing the conflict. If you can work with a law firm to identify the source of the risk, you can often eliminate it and put your business on the right track. As in health, prevention is worth a pound of cure.

Understand The Opposing Party’s Perspective

The next step is to understand the opposing party’s perspective and find out why they don’t want you to do whatever you’re doing. Having empathy may be able to help you navigate the situation better and see it from their perspective. 

Consider A Third-Party Mediator

If you can’t come to an agreement between you and the opposing party, you might want to appoint a third-party mediator. This individual or team liaises with you and the other team in an expert manner, de-escalating the conflict and ensuring that everyone gets on the same page. 

Document Settlement Terms

In some cases, you may need to come to a settlement with the other party. In business, this usually involves some sort of agreement where you promise to stop doing something, or you pay a sum of money upfront to avoid a court case.

Whenever you come to a settlement, ensure you document all terms professionally. Think of it as a contract. If either party breaches the terms, you can take it a step further and ensure that you get a positive outcome for your firm or brand. 

Documenting everything and distributing terms to all parties also helps to avoid misunderstandings and people breaking the rules. Everyone needs to be absolutely clear on where they stand and what they need to do. 

Follow Through On Your Commitments

If you do sign up for a settlement or an agreement, make sure you follow through on your commitments. You want to ensure you regularly implement the points set out in the agreement and that your actions are visible to the other party. Don’t be opaque and leave everything to trust. Constantly monitor and let yourself be monitored to prevent conflict from escalating to an unsustainable level. 

Evaluate The Costs And Benefits

As an SMB, you should also evaluate the costs and benefits of resolving a dispute. While another party might have wronged you, you should think carefully if it is worth going to the expense of correcting the situation. 

If there are costs and benefits you need to weigh up, put on your financial hat and try to calculate them. Figure out whether avoiding or pursuing a case is worthwhile. 

Be Respectful Of The Rules

Lastly, be respectful of various court rules if you wind up in front of a judge. Ensure you follow the proper etiquette and use lawyers to represent your case.