Act early on disputes, says Adelaide law firm Finlaysons SMALL to medium businesses involved in disputes must act early to avoid losing time, resources and money, warns Adelaide law firm Finlaysons. Finlaysons partner Andrew Williams said being proactive was the best way to handle disputes that might occur with customers, clients, suppliers or landlords. "Those who are unfortunate enough to find themselves in a dispute, or potential dispute situation, often avoid dealing with it until a later stage, often when it has reached a toxic status between parties," Mr Williams said. First and foremost, while disputes can be unpleasant to deal with, time is of the essence. It's important that the business grapple with that issue as soon as possible and that doesn't mean necessarily solving it (immediately). Mr Williams said the first step for small to medium business owners embroiled in a dispute was to start their own file about the issue. This included collating documents and notes relevant to the dispute and talking with staff. "Everyone's objective is to avoid litigation in court because it's a long and costly process," he said. The best way to negotiate is from a position of strength. One of the best ways to demonstrate strength is to show the other side you have the information (supporting your) case and the willingness to go to court if you need to. Many disputes centred around money and not much else, but others could more complicated, Mr Williams said. "In cases where there is an ongoing relationship (between dispute parties) there may be a novel way of dealing with it," he said. For example, instead of money, offering services in kind or some other kind of bargaining chip. Mr Williams said a big concern for SMEs in dispute was a fear that the law was too complex and expensive. "This can be the case but the business that does the work to put all the documents together or get records from staff . . . will be best placed to provide the right detail so professional advisers can give helpful answers on a cost-effective basis," he said. A 2010 study by the Department of Innovation, Industry, Science and Research found one in five Australian SMEs had experienced a disagreement or dispute in the previous five years.