This article was originally published in the May issue of Yorkshire Business Insider.

A business dispute can be stressful, time consuming and costly and better avoided, if possible.

My key advice to help minimise the risk of a dispute is to put everything in place in a written contract at the start of any business relationship. It is then important to operate in accordance with the contract terms in your business operations: a contract will be of no use to you in the event of a dispute if its terms were not adhered to.

I would also recommend keeping records of any changes made to written agreements as the relationship progresses. If you do end up in a dispute but have a good written contract in place, this will help you navigate the problem and give you a good foundation upon which to deal with any legal action that might arise.

A written contract won’t always prevent a dispute arising. Sometimes, things still go wrong. In that situation, these are my tips:

1. Don’t ignore it:  disputes can be challenging, and the stress can make you want to bury your head in the sand. This can be detrimental in the long term. As difficult as it may be, tackling the dispute early on and head on will put you in the best position in the long run.

2.  Communication is key : when a dispute arises, listen to the other party’s concerns and try to respond with your own views, clearly and respectfully.

3. Engage sensibly from the outset : try to avoid becoming heated or defensive. Instead, stay calm and professional. Try to understand the other person’s perspective and to stay amicable. A dispute is best resolved by reaching an early, mutually acceptable solution.

4. Focus on the issue(s) : emotions often run high in a dispute, and it is easy to cloud the situation with things that aren’t relevant. Try to avoid this by sticking to the facts and dealing only with the issue at hand.

5.  Document everything:  keep detailed notes of all discussions and agreements and keep copies of documents that can evidence what happened. It will usually be helpful to record even early discussions in writing by asking for confirmation of verbal discussions by e-mail. This can help prevent misunderstandings and will provide a record of what was agreed upon.

6. Be open to compromise:  in most cases, successfully resolving a dispute involves both parties making a compromise. Becoming entrenched will usually only make a dispute more prolonged and difficult to resolve.

7.  Do not prejudice your position : when dealing with a dispute it is important to try and engage in negotiations. However, avoid offers that could prejudice your position in the long run. If you decide to make a settlement proposal, make sure you clearly make it “without prejudice” – whether in writing or verbally. This will make sure that any offer you make cannot be brought to the Court’s attention later down the line.

8. Get early advice:  it often helps to take early legal advice in a dispute, particularly if you are unsure of your position. Unfortunately some disputes do escalate to legal proceedings, and, in those situations, it will be much easier to deal with the legal claim if you have approached a legal adviser at an early stage.

If you find yourself in a dispute with a client, supplier or employee we are able to support you. Call 01302 320621 or email help@switalskis.com