As a business owner, you are familiar with the challenges that come from running a company. Every day you make decisions that impact your bottom line and your livelihood. The people who count on you for employment are also affected by the choices you make.
When disputes arise, you may feel pressured to resolve things as quickly as possible. You may want to try to make the litigation or threat of litigation go away, and make decisions that you believe are in your best interests. But have you thought about the big picture? How are the choices you are making now impacting what you hope to accomplish in the future? Here are a few things you may wish to consider if you learn that your company may be sued.
What is this going to cost you?
The costs of litigation are the most surprising factor to business owners who find themselves involved in a dispute. Even something like a straightforward breach of contract case can cost a substantial amount to resolve if the matter goes to trial.
Litigation may be absolutely unavoidable in your situation. However, if you have the ability to consider alternative dispute resolution methods like mediation or arbitration, you might be able to avoid an expensive and unpredictable outcome that threatens the financial health of your company. This can save you time, money and frustration.
Timing is everything – unless it isn’t
No one wants to have a potential lawsuit looming in the distance. It can make it very difficult to think about the future of your company. The choices you make now can solve your problems now, but will they make things worse later? It’s important to look at the case from different starting and ending points – and make sure that you create a plan that helps you avoid similar issues in the future.
What does this mean for your business relationships?
Whether your dispute is with other businesses, suppliers or customers, every court case has the potential to harm the goodwill that your company has earned over the years. Even if you win, what will the ultimate effect be on the relationships you depend upon to do business? Will other companies continue to work and cooperate with you? Will you need these relationships in order to meet your long-term goals?
All of this matters when you sit down to take a look at the current dispute. It may take time to find the right approach to take, but identifying the avenues available to you is a crucial first step in addressing the problem in a positive way.