
In times when regulation and litigation are on the rise, having instant access to legal expertise is not just an advantage – it’s a necessity.Â
Are you running a company that is scaling quickly, or which you believe will start to scale in the near future? As your business scales, the complexities of legal compliance, risk management, and strategic decision-making grow exponentially, and you may soon find yourself contemplating the lawfulness of your operations and/or the suitability or desirability of your contractual arrangements and relationships. The question of legal support then becomes paramount. While some organizations might consider hiring a full-time in-house legal counsel, a fractional general counsel can offer a flexible, cost-effective alternative.Â
This article explores the traditional role of the in-house legal counsel against the benefits of fractional legal support, and why it may be in the interest of a scaling entity to consider the latter.
What is an In-House Legal Counsel?
In-house legal counsel are employed by corporate entities to manage the entity’s legal affairs. Unlike outside lawyers, who are hired for specific matters from time to time, in-house counsel are dedicated to the entity’s specific legal needs and are an integral part of the company’s workforce. Their work responsibilities typically involve management of the following:
- Contracts: Negotiating, drafting, and/or reviewing contracts that regulate the entity’s relationship with its clients and suppliers.
- Compliance: Ensuring that the entity remains compliant through adhering to all laws and regulations that are applicable to it and its operations.Â
- Legal Risk: Identifying potential legal risks and advising on how to avoid or mitigate them.
- Litigation Support: Managing any disputes that may arise, whether to enforce the rights of the entity or defend claims that are brought against it, and coordinating with outside attorneys when necessary.
- Policies and Procedures: Creating internal policies and procedures to be adhered to by all who work for and support the company, which policies and procedures align with applicable legal requirements and best practices.
The Fractional General Counsel
While having in-house counsel can provide significant benefits, it often comes with high costs, particularly for scaling entities that may not require full-time legal services.
Through hiring a fractional general counsel, your company will be able to access legal expertise and support without the financial burden of a full-time employee. Here’s why scaling entities should consider this option:
- Cost-Effectiveness: You only pay for the legal services needed as opposed to a salary package for a full-time employee.
- Flexibility: You are able to adjust the hours and services required from a fractional general counsel in a way that is aligned with the company’s growth and changing needs.Â
- Invaluable Expertise: Fractional general counsels have diverse legal backgrounds, often with legal experience within various industries, having worked in law firm environments and internally for corporate entities. Because of this, you will have access to a range of expertise and knowledge that can provide you with invaluable insights and guidance geared towards the unique challenges faced by a scaling entity.
- Risk Management: As businesses grow, so do their legal risks. A fractional general counsel will proactively identify potential risks and address them in a way that ensures that the company is not left to a reactive legal strategy. This will play a significant role in saving the business from costly litigation and compliance issues down the line.
- Decision-Making: Having legal expertise readily available allows business leaders to make informed decisions quickly, thus streamlining processes and aiding the rapid growth of a company. A fractional general counsel is a call or email away, for real-time legal advice on contracts, negotiations, and compliance matters. This in turn streamlines processes and facilitates the rapid growth of a company.
- Business leaders can focus on business: With legal matters handled by a fractional general counsel, the company’s leaders can concentrate on their primary business objectives rather than getting weighed down with legal concerns.Â
Conclusion
As your company grows and navigates the complexities that are inherent with its growth, you will need some form of legal expertise to ensure compliance, manage risks effectively and focus on its core effectives. Hiring a fractional general counsel can be a strategic move that fulfills your need for legal expertise on a cost-effective basis. Engaging a fractional general counsel could be the key to unlocking your company’s maximum potential while protecting its interests and helping you rest better at night.
If your company is scaling, consider using a fractional general counsel from Caveat Legal. Our team of legal experts has the experience and skill set to guide you through any legal hurdles that you and your growing company might face. Set up a meeting today.