When you hear the phrase “business development,” you probably think about business growth. You think about getting new clients and introducing new products and services. While business growth does require new clients, services and products, it also requires basic internal structures. The basic structures have to be present before a business is ready to become bigger, faster and better.
If one of the basic structures is not functioning, business growth slows down. When growth slows down or stops, business owners can panic and ignore daily needs while scrambling to cover expenses. If this happens, client relationships can be negatively impacted. If a business owner is highly distracted, conflicts may arise between business associates and partners. Depending on the relationships, conflicts can lead to lost time, money and damaged reputations.
The basic internal structures of a business support business owners regardless of what types of business they are running and what they actually do on a daily, weekly and monthly basis. These basic structures are: physical health and mindset, a risk/ethics analytical matrix, financial foundations and your support networks.
This article addresses mindset as it pertains to conflict prevention. Your mindset is crucial to the longevity of your business. If you are excited about your business and your services/products, people hear your passion. People respond to positive feelings and enthusiasm. People buy from people they know, like and trust. If you genuinely love what you do and can articulate the benefits for consumers, they will listen.
Your mindset is part of you. You have fixed emotional set points that determine how you see the world and how you respond to trauma and stress.
How you see the world and operate in it determines how you handle conflict. Internal conflicts arise when your values, choices and actions are not in alignment. Conflicts occur in business partnerships, associations and employee/employer relationships when people are unclear about goals, expectations, role and boundaries.
Generally, how do you see the world? Is the glass half-empty or half-full? When you know yourself and how you see the world, you can formulate strategies that suit you. Trying to take actions that do not fit your personality can lead to frustration. Frustration can lead to loss of productivity. Lost productivity can lead to fear, partial or total paralysis and eventual financial losses.
How does conflict affect you? Conflict is part of life. Some conflicts are simple and short-lived. Some conflicts are easily settled with clear communication and compromise. Some conflicts resist attempts to “fix” them. The people involved cannot communicate. They refuse to see one another’s point of view. They are deadlocked.
People respond differently to conflict. Some people love conflict and thrive on it. They look for ways to create it and “stir the pot” to ensure that settlement attempts fail. Other people hate conflict and will go to great lengths to avoid it. They cave into other people’s demands, just so that they can “keep the peace.” They tolerate unpleasant situations instead of raising their concerns about unfair treatment.
How do you deal with escalating conflict and angry people? Some people are comfortable with angry people and can shut them down immediately. Others leave an unpleasant situation immediately and resume communications at a later date. Some people are paralyzed by anger. They cannot evaluate a situation or decide how best to handle a person who is screaming at them. They cannot advocate for themselves and let themselves be bullied by someone who is out of control.
Whether you are signing contracts for services and/or products with business associates, entering into a partnership agreement with someone or hiring employees, you will benefit from thinking about and planning for conflict prevention. Conflict is prevented when you get to know people whom you are forming business relationships with. As you get to know them. Define the relationship. Identify your expectations, goals, role and boundaries. Discuss conflict with your associates and agree how you will manage it so that it does not get blown out of proportion.
Decide how to formalize these conversations. If you want a written agreement, make sure that you both understand what is says. Create one that is flexible enough to live and breathe with your relationship. If you don’t want a formal written agreement, consider using a mind map or a less structured document. When people are clear about goals, expectations, roles and boundaries and have methods to resolve differences, they can focus on business growth and development.
For more information see Learned Optimism by Martin Seligman, Ph.D., The E Myth by Michael Gerber, A User’s Guide to the Brain by John Ratey, MD and books by Tony Buzan.
This article provides general information. This article is not intended to be, nor is it, legal advice. If you are in a business relationship that is not functioning according to agreements, expectations and legal structures, seek independent legal advice.