The in’s and out’s of Mediation!

How Small Businesses can use Mediation to Save Time, Money, and Working Relationships

Part of doing business is dealing with difficult issues:

 

The Partner’s Son

Your business partner is planning to retire by handing his share of the business to his son.  In your opinion, the son is absolutely incompetent and will drive the business to ruin. Your partner’s been a great guy, and you’ve worked together successfully for 20 years.  But he’s got a blind spot when it comes to his son.  For the good of the business, you’ve got to block that move.  But you don’t want to go the legal battle route because it’s so expensive and you don’t feel good about making your partner an enemy.  How can you save the business and a valued friendship without losing your shirt?

Dueling Employees

Two of your employees have been in-fighting so much lately that it’s affecting your business.  You can’t just fire them – you’re a small shop with limited resources, they’re key employees, and basically good people.  And even if you did fire them, you’ve heard enough about retaliation of fired employees and discrimination claims that you’d rather not go there.  So how can you make them work together and get your business back on track?

Getting Paid

Your client is refusing to pay the invoice for the website you just developed (for him).  You’re certain that it’s exactly what they asked for, but they say it’s not.  They want all kinds of changes, at no additional cost, and you just can’t afford the time.  You have a suspicion that they’re strapped for cash and are just using this story as an excuse to not pay.  Small Claims is one option, but that takes forever, and there’s no guarantee you’ll get anything.  And you’re a new business in a small town, and you’re worried about word-of-mouth.  How can you get paid for your work without harming your reputation?

Smart businesspeople choose the right option to solve the problem:

 

Option 1: Ignore the situation

– Maybe the son isn’t as stupid as you thought, and everything will turn out alright.
–  Maybe your employees will work it out themselves, or one will just quit.
– Maybe you make the website changes the client asks for, and hope the invoice will follow.

And then, maybe not.

Option 2: Go on the Offensive (powerplay, litigate)

– Hire a lawyer to fight your partner’s decision or challenge the son
– Threaten to fine or fire your employees, or actually fire them
– Demand payment from your client, go to Small Claims

And pay the time, money and relationship costs

Option 3: Find an Optimal, Win-Win solution (mediate, collaborate)

This is the only option where you have control of the outcome.

Hire a mediator as a neutral third party to facilitate a mutually respectful, private, problem-solving discussion.  You’ll focus on what the really important issues are to each of you, and what it’s really going to take to resolve it once and for all.  You can write up an agreement, which can contain whatever terms you want.  Who enforces the agreement?  You each do – because it’s what you agreed you wanted to do.

Sounds simple.  It is.  And it can really work for you and the issues you face as a small business owner.

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