Legal assistance is vital for running a business. However, the high cost involved in hiring general counsel attorneys acts as a deterrent to many small enterprises. These organizations can engage professional fractional general counsel services to get legal guidance. This will protect them from all kinds of legal trouble and help them comply with applicable regulations. A common problem faced by most startup owners is as their business begins to grow, their legal requirements also see an increase. This results in the owner and the management addressing legal concerns besides managing their business responsibilities. This can have a negative effect on the enterprise. Small firms can avoid such a scenario and enjoy the following benefits on hiring fractional lawyers:
What Is A Fractional General Counsel?
Fractional general counsels are external professionals who provide legal assistance to a business. While they will discharge all the duties an in-house attorney would have shouldered, they will not be permanent employees of the company. Small firms outsource their legal work to individuals or firms at a fixed rate. Both sides work out an arrangement where the professional will provide the services for a specified time period. Usually, agencies allot a specified number of hours to companies and if any additional time is needed, the client pays at a pre-decided hourly rate. Such services are extremely beneficial for small firms in large and vibrant economies like India. In fact, many startup lawyers in India take up outsourced in-house assignments.
What Are The Advantages Of Hiring Fractional General Counsel Services?
Businesses can enjoy the following advantages when they hire fractional legal services:
1. Cost-effective Method
It is a much more cost-effective method than hiring a permanent general counsel lawyer. An in-house professional will charge a hefty salary besides a host of other employee benefits. This can put a strain on the finances of small firms which are looking to utilize every cent to speed up their growth. Instead of hiring cheap but inexperienced firms, businesses must outsource their work to reputed agencies. They will get high-quality and efficient services at much lower prices.
2. Benefit Of Increased Flexibility
Hiring fractional general counsel services allows companies to be flexible as they do not have to make any long-term commitments to an individual. In case, a firm is unhappy with the services of an in-house attorney, they will have to follow the specified legal steps to terminate the individual’s employment. However, outsourcing frees them of such hassles. They can easily end the contract with an external professional or agency by invoking the relevant clause in the agreement.
3. Allows Owners To Focus On The Business
Legal issues can be extremely complicated and time-consuming affairs. In absence of legal guidance, business owners along with the top executives will have to shoulder the responsibilities. No matter how accomplished they may be, they are not trained to tackle such issues. Their core competency lies in executing business tasks. Delegating work to professional firms will take the burden off their shoulders. They can concentrate their energies towards managing the enterprise and improving its performance.
4. Provides Access To Professional Advice On A Range Of Issues
A business requires assistance in a range of issues like intellectual property, employment, compliance regulation, and litigation. A general counsel lawyer possesses good knowledge in all these areas but even she has to rely on specialists to handle complex issues. Hiring legal firms will give businesses access to extensive advice in all practice areas.
5. Ensures Compliance With Legal Regulations
One of the most important reasons for which businesses hire lawyers is compliance regulation. Just like in-house counsel, outside agencies will identify all applicable regulations and ensure the company complies with all of them. Law firms draw a blueprint for clients so that they fulfill all conditions before the deadlines. This saves them from any kind of penal action.
Fractional general counsel services help companies take a proactive approach toward legal risk management. Instead of dealing with issues when they occur, businesses can create an effective plan to mitigate risks in the future.