The Power of ‘Us’ in Business

One of my least favorite business phrases is: “What’s in it for me?”  Business… real business… is about establishing and maintaining relationships, not just unilaterally deriving a benefit from another party.  Too many business owners get too focused on a winner take all mentality that they lose sight of the power of collaboration with business and the benefits that come with it.  When business owners change the question to: “What’s in it for us?”, business becomes more meaningful.  Here are three reasons why “us” is a more powerful form of business:

1) “Us” focuses on the relationship-

The best kind of business is one that persists.  When you are able to retain a client and do work for them year after year, it maximizes the initial investment that was made to secure the business.  Also, if you have development a good relationship with a client/customer, that will more often than not translated into additional business in the form of referrals.  Also, it will allow you to generate a better reputation, especially if that individual or company provides a positive review or testimonial.

2) “Us” leads to negotiation-

When you are focused on consensus and collaboration, it is far easier to negotiate a beneficial deal for all involved.  It also makes it more likely for parties to be able to openly and frankly discuss current and future opportunities without fearing that information would be “used against them.”  This type of disclosure would leave to more meaningful and informed business decisions and allow for business owners to create more effective and profitable business ventures over the long term.

3) “Us” minimizes conflict-

If both parties are focused on us instead of acting self-interestedly, they are more apt to seek resolution of their problems in collaborative ways instead of through litigation.  Parties will be more flexible and make reasonable adjustments because they know that it is better for all involved.  People are more willing to create payment plans or alternative requirements when they are committed to a collectively beneficial agreement.

 

What are some of the pro’s and con’s that you see to a more “us” focused business?

5 Ways to Minimize Litigation in Your Small Business

No business wants to have to deal with litigation, especially not a small business.  The cost of initiating or defending a lawsuit can be crippling to a business owner.  While not all litigation is avoidable, here are 5 ways you can seek to minimize litigation risks for your small business.

1) Do you homework

Doing your necessary due diligence before entering in to a deal is a great way to minimize litigation risks to your small business.  What is the nature of the other party?  Have they been involved in litigation in the past?  What is their capacity to do this deal?  What is your capacity to do this deal?  How are they structured?  When you take the necessary time to properly evaluate the deal before you, you are more likely to make an educated decision which in turn often minimizes risk.  This helps weed out the bad parties or individuals that are most likely not going to perform adequately.

2) Clearly define relationships

A well-drafted contract or agreement can go a long way in protecting all parties to a business deal.  Critical to this is using clarity in defining what the duties and responsibilities are of all involved.  When each party knows and understands their duties and those of the other party, it is less likely that there will be confusion down the road about what should or should not be happening in a business deal.  It also helps to clearly outline what the penalty is for failure to perform under a given deal.  When you have done your homework as outlined above, it allows you to better be able to define duties and responsibilities of each business party.

3) Be flexible

Especially in an economy such as this, once you are engaged in a business relationship, it is critical to have a necessary level of flexibility.  Sometimes unforeseen things happen and people are going to need to make adjustments to the original agreement or payment schedules.  Be willing to engage in reasonable changes to the agreement and be clear about what those changes do and do not entail.  People are going to be more likely to work with you now and in the future if you are flexible and understanding in how you deal with them.  If your due diligence has sufficiently removed bad actors from the pool of clients or customers, it is less likely that you flexibility will be inappropriately taken advantage of.

4) Stay level headed

Also, it is critical that you as a business owner keep a level head and resist the temptation to make things personal and become excessively confrontational.  It can be frustrating when a deal falls through or other individuals fail to perform as they had agreed.  If you are level-headed and solution-oriented in your approach to the situation, you can more often than not come up with an amicable settlement and a new plan going forward.  Ultimately, this route is also just better for your peace of mind.

5) Seek alternative resolution methods

Businesses also have access to alternative dispute resolution methods such as mediation and arbitration.  You can set these up through formal mechanisms and via contract or you can also create a more informal structure with each individual party.  Setting up a day when both parties can re-evaluate their position and communicate about concerns can go a long way to diffusing a difficult situation.

Although, not all litigation is avoidable, doing the above with help to minimize litigation risk for your small business.

Welcome to the Florida Small Business Blog!

This blog will evaluate and discuss legal issues that face small businesses in Florida. It will also review changes in the law or other current events and discuss their impact on small business owners. Although this blog will contain my insights and perspective on business law in Florida and its application to small businesses, nothing contained herein should be taken as legal advice. Each situation is unique and I would strongly encourage you to always speak with an attorney about any business law question that you might have. I hope that you enjoy the insights and feel free to make comments to my posting.