It is understandable that people get upset when they feel someone else has wronged them. Yet, as a business owner, it is crucial to understand that sometimes the cost of holding someone responsible, or proving they were in the wrong, outweighs the benefits you will get by doing so. There is little point in winning a legal victory over them if it comes at a massive cost to you or your business.
Here are some of the costs to consider.
The destruction of personal relationships
Let’s say you have a dispute with a long-standing supplier. You and others within your company might have built strong personal relationships with some of the people in that company over the years. Going to court might sour or jeopardize these. Aside from the value of friendship for friendship’s sake, some of those contacts might prove valuable in the future. Maybe someone from that company will go on to set up their own company and also become a valuable client of yours in the future. This is less likely to happen if they feel you unjustly took their old company to court.
The stress and time
Winning a dispute will take time, money and work and even after putting all this in, a win won’t be guaranteed. Whether you win or lose, you might look back and wish you had invested those efforts somewhere else. For example, by spending time with your kids rather than staying late at the office to build your case. Or by spending on marketing to gain new customers, rather than spending to fight against an existing one.
The costs of business disputes are often much higher when litigation is involved. That’s why exploring the variety of alternative dispute resolution methods available is often wise. While it is important to stand up for yourself and your business when needed, there is often more than one way to do so. By keeping the bigger picture in mind, you can understand the true costs and benefits of a particular option.