We all know that in light of the steps taken to mitigate the spread of the COVID-19 virus, the global economy has contracted. This economic contraction has resulted in recessions in countries resulting in business closures and increased unemployment. According to the International Labour Organisation, as of June, 2020, “[more] than nine in 10 of the world’s workers continue to live in countries with some sort of workplace closures, with the Americas experiencing the greatest restrictions …”[i]. This reality has resulted in many of us and people that we know taking steps to adjust our lives and seek alternate employment or additional income. One way this is being done is by people working part time or creating additional sources of income by offering services e.g. tutoring, cleaning, delivery services or selling homemade desserts. If you are about to start a small enterprise or have started a small enterprise then I wish to share how to avoid one aspect that can destroy your enterprise and new source of income.
One thing that is certain in all relationships including business relationships is conflict. Another way to describe conflict is disagreement. Simply put conflict occurs when you and your client has a different understanding of exactly which services were agreed and when they should be delivered. In many cases, this difference of understanding only becomes apparent during or after the services are delivered and before full payment for the services have been made. If you have experienced this then you know that this scenario is very frustrating for for both parties.
As a small enterprise operator you should take steps to avoid settling conflicts in court, avoid litigation. While litigation is a legitimate means of resolving conflicts it has some disadvantages that are not suitable for small enterprises. You are probably fully aware that litigation can be costly and time consuming. If you are operating a small enterprise to create additional sources of income then it is likely that you do not have a budget for litigation nor do you have time to dedicate to attending court. Litigation should be avoided and you should employ alternate forms of dispute resolution. I am referring particularly to Arbitration, Mediation and Negotiation.
These alternate forms of conflict resolution are less costly than litigation and can produce a resolution in less time. I recommend that if you are about to start a small enterprise or have started a small enterprise that you seek advice and become more familiar with these alternate forms of conflict resolution and include them as part of your business strategy.
In closing, I wish you all the best with your enterprise. Do well. Do very well.
Please feel free to direct any questions or comments to Kean Smith at kean@smithkas.com
[i] Hard times forecast for global job recovery in 2020, warns UN labour agency chief. 2020. Available at: https://news.un.org/en/story/2020/06/1067432 [Accessed: 3 November 2020].