Being in business with family members involves some unique dynamics that are not present with other types of business arrangements. Sometimes, issues that are totally unrelated to the business can become disruptive, such as personal/relational conflicts, and some of these may go back several years or even decades.
During the COVID-19 crisis, many family members have been cooped up together for an extended period of time, causing many disputes that may have been simmering underneath the surface to boil over. And in some cases, the family business has also had to close temporarily, adding more stress to the situation.
Family business disputes that are triggered by issues that blow up during the heat of the moment can cause long-term damage, possibly even leading to the closure of the business. And oftentimes, it is difficult for family members who are so close to the situation to resolve these matters among themselves. Unfortunately, the emotions and stress created by the unprecedented times we are living in could cause the owners of a family business to call it quits, even though they might still have a viable business that could continue on and be passed down to future generations.
How Mediation Can Help Family-Owned Businesses that are Facing Difficult Times
Whether it is a conflict between owners that poses an existential threat to the family business or difficulty figuring out how to navigate the uncharted waters ahead as we look forward to the end of the coronavirus pandemic, owners can benefit greatly by bringing in an outside perspective.
A mediator, for example, can help resolve disputes between owners, and they can also help with issues the business may have with outside parties; such as suppliers, vendors, lessors, or other associates for which they may need to renegotiate their existing agreements. Mediators can also help create a more formal operating agreement for the business, one which many family businesses have realized that they need since COVID-19 started.
Here are some of the advantages that mediation offers for family businesses with issues that need to be resolved:
At AMS, we hope that family businesses will consider mediation as an option to resolve disputes and other issues, whether you use us or someone else. However, one major benefit you will receive with us is our first-hand experience working with businesses of all types and sizes.
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