Because litigation is time-consuming and can potentially cost you valuable business relationships, most business owners want to avoid it as much as possible. There are alternatives to litigation like arbitration and mediation, but it is wise to try and solve problems before they get to the point of needing outside intervention.
Not only is litigation bad from a business relationship perspective, but it can also needlessly put stress on your managers and employees. This is why taking active steps to avoid litigation through following the golden rule and focusing on your communication style is paramount.
Treating others kindly
Most of us are familiar with some iteration of the golden rule from our childhoods: treat others the way you would want them to treat you. This simple lesson applies just as much in the business world as it did on the playground. Before charging into litigation against an adverse party, it is wise to step back and try to think about the situation from their perspective.
Seeking common ground can help you find an agreeable settlement or even avoid the conflict in the first place.
Robust communication is key
Most arguments happen due to a lack of clear communication. Business owners are aware that they should write contracts in a clear manner in order to avoid confusion. Take that attention to detail and make sure you apply it to any aspect of communicating with business partners, from email to text.
Additionally, one of the most common litigation that triggers is one party completely failing to respond to the communications of the other side. Simply keeping on top of communication can help to avoid litigation.