As a business owner, you likely deal with many clients, vendors and distributors on a daily basis. While you run your operations, you may end up in a dispute with another party at some point.
For the 3.7 million small businesses in the U.S., according to the U.S. Small Business Administration, litigation can be a viable way to resolve disputes, but most rely on prevention strategies to prevent going to court. The following methods may be able to help your business avoid a dispute that results in a litigation situation.
1. Prepare proper contracts
Especially for important transactions, take time to develop comprehensive contracts for your business. Vague or unclear information in your contracts can make disputes between your business and other parties more likely.
2. Focus on service
Make quality service a core aspect of your business’ operations. Try to address issues shortly after they arise and clearly communicate with your vendors, clients and employees on an ongoing basis.
3. Learn about your customer base
Any time you decide to start a new business relationship, learn as much about your new client as possible. This can help you develop a positive relationship at the beginning that makes a potential dispute less probable later on.
A dispute can disrupt the operations of your business and make it difficult to continue to provide the goods and services you offer. Knowing your customers, providing quality service and creating solid contracts can help you protect your business’ interests and the profitability of your operations.