How to Start an Alternative Dispute Resolution Business

ADR businesses help resolve conflicts.

Alternative dispute resolution (ADR) allows businesses or individuals to settle an argument or conflict without going to court. The most popular types of ADR are mediation and arbitration. Mediation is a process where two parties meet with a mediator (a neutral third party), and uses the assistance of the mediator to come to a resolution. Arbitration is a process where two parties in a legal dispute come together to find a resolution without having to go to court.

Instructions

1. Get certifications and licenses. In many states, people with an ADR business must hold a certification or license in mediation and/or arbitration to charge for services. Check with the American Bar Association and mediation associations in your state to find out what their requirements are.

   You can usually attain a basic mediation certificate by attending a conference or workshop for a few days. Mediation associations often offer these workshops. Those who wish to perform mediation services for the courts must either be licensed lawyers with five years of practice and experience, have a bachelor’s degree in any area of study, have at least four years of management experience and about five years of mediation experience, or have little mediation experience, but have a bachelor’s degree and at least 10 years of experience in upper management.

   Arbitration certifications vary from program to program regarding length of time and testing requirements. Ask the American Bar Association in your state what its requirements are and what arbitration programs they approve.

2. Decide on your ADR business’ focus; base the focus on your interests. An ADR business can choose to serve only businesses, the public (to help neighbors resolve disputes, for example) or families. MarketingMediation.com suggests making sure your ADR business idea is practical and will fulfill a need in the community.

3. Create a business plan. In this plan, write down the goals of your ADR practice, the rates you will charge and why/how your practice will fill an ADR need in the area. Include your start-up costs, operational costs and plans for growth. When planning your finances, also consider the costs of ADR certification and licensure programs, business licenses and insurance, rent, utilities, possible employees, ADR marketing materials and so on.

   In the business plan, describe the competition in your area (if any) and detail your ADR business’ advantages over them. MarketingMediation.com advises individuals wanting to start an ADR business to determine how they will offer better services and create a demand for their ADR business.

4. Find a place to run your ADR business. Decide if you will rent a whole building to conduct business in, rent a room in a lawyer’s office when meetings are scheduled or will run your business from a home office. Good business locations to consider include those next to law firms, in popular commercial or business areas of a city or by a courthouse.

5. Find ADR resources in your community and use them. Resources, like ADR associations, might hold monthly networking meetings where you may find good referral sources for clients, and may become a referral source for another’s clients. Resources may provide free trainings to those in the ADR field or free printed materials that can be copied and distributed (like resolution contract templates for disputing parties).

   If you are not sure where these resources are available, first check with the American Bar Association and then your local city and county court offices.

6. Market your ADR business. Visit lawyers’ offices, counseling centers, community center or any other agencies that serve your target population and personally set up meetings with the directors of these agencies. In these meetings, let your new community partners know more about your services and give them copies of your ADR brochures, business cards and other marketing materials you have for them to keep for themselves and hand out to clients. In addition to paper business cards, consider making magnetic business cards that community partners can stick on to their file cabinets. Magnets are more visible and memorable than business cards tucked into a Rolodex. Also, market your ADR business by purchasing ad space in local publications, like newspapers and community newsletters.

References

• Marketing Mediation: Starting a Mediation Practice?
• American Bar Association: How To Market An Alternative Dispute Resolution Practice
• World Bank: Alternative Dispute Resolution Manual: Implementing Commercial Mediation
• American Bar Association: Alternative Dispute Resolution Committee

Resources

• American Arbitration Association