A functional business partnership is a valuable relationship. Both partners share responsibility for the business and help develop the company together. The resources and abilities of one partner can augment what the other brings to the table.
There is substantially less risk of a company failing when there is more than one person involved in its establishment and daily operations. Unfortunately, business partnerships are subject to the same challenges as any other interpersonal relationship might be. One partner may feel disappointed in the performance or conduct of the other. Partners can fail to fulfill their obligations or may misrepresent their intentions and abilities when starting the business. They might then end up embroiled in a dispute that damages the business they started together.
Many frustrated business partners find that mediation is a better way to handle disputes with a partner than litigating the issue. How can mediation help partners navigate a conflict?
Mediation promotes cooperation
During a mediation session, the business partners sit down with a neutral professional mediator. That mediator helps facilitate a calm conversation. By giving each partner an opportunity to speak and asking questions to guide the conversation, a mediator can help partners start to understand each other’s perspectives. That alone can prove invaluable when trying to navigate a conflict. Having a more compassionate or cooperative approach and also potentially make it easier to find a compromise where both partners are satisfied with the outcome of their negotiations.
Mediation keeps things private
Taking a business partner to court can cause a host of challenges. First of all, anyone else working at the company could potentially hear about the pending lawsuit. In fact, rumors of litigation could reach customers or clients. A lawsuit could have a negative impact on the organization’s reputation and economic prospects. If employees know that owners are currently involved in a dispute with each other, that could affect morale and job performance. When partners take a business disagreement to mediation instead of to court, they can keep the dispute private. They are able to discuss detailed company issues in a confidential setting. If they work out an arrangement that they both deem appropriate, they can sign a binding agreement that could prevent future conflicts from arising.
Exploring mediation as an option for settling partnership disputes could help those worried about a disagreement with a business partner. Business owners who take assertive action to resolve conflicts with their partners can potentially maintain healthier organizations and more functional working relationships with their partners.