Unique dynamics arise from being in a family business that are not present in other types of businesses. Personal or familial issues can project onto the business and become disruptive, especially if these conflicts date back many years.

When family businesses have ongoing issues that erupt suddenly, it can cause long-term damage and sometimes even lead to the business closing. It’s frequently hard for relatives who are so close to the situation to resolve these differences by themselves. With all of the emotion and stress from these unprecedented times we’re living in, some family business owners might choose to call it quits, even if their business is still viable and could be passed down to future generations.

How Mediation Can Help Family-Owned Businesses that are Facing Difficult Times

Whether it’s a conflict between owners that threatens the family business or difficulty figuring out how to navigate uncharted waters ahead, owners can benefit greatly from an outside perspective.

Mediators can be incredibly helpful for businesses, as they help resolve disputes between owners and outside parties. Mediators create a more formal operating agreement for the business, which helps to establish clear boundaries and expectations between all individuals involved. This increases communication and understanding among everyone, preventing any future issues from arising.

Here are some of the many benefits mediation can provide for families that own businesses and are experiencing conflict resolution issues.:

• Affordability: Not only does mediation save you the time and money of going to court, but it can also prevent disputes from occurring in the first place. In most cases, business owners can settle important issues in just a few sessions or less.
• Direct Participant Involvement: The mediation process is only successful if all parties involved agree to the terms, making it a voluntary experience. The mediator helps guide the conversation, but it’s up to the participants to decide how the issues will be resolved. By allowing them this agency, they’re more likely to follow through with whatever is agreed upon.
• Confidentiality: The privacy of mediation sessions allows participants to feel safe discussing personal matters with the mediator.
• Flexible Scheduling: When you mediate, rather than go to court, you save time and can schedule meetings around your life instead of being beholden to the court’s schedule.

Beason Mediation recommends that family businesses utilize mediation to resolve any disputes. With years of experience working with companies ranging from small startups to large corporations, we have the knowledge and insight to provide you with the best possible outcome.