There are several reasons why hiring an outside general counsel can be beneficial, even if your company has an internal legal team.
Hiring an outside general counsel can be a wise decision. They can get legal counsel and assistance without paying for internal, full-time attorney credits. You should weigh the benefits of this option to decide if it’s the best choice for your business. Having an outside general counsel eliminates the burden of paying for an employee’s entire legal bill, which is one of the main benefits of using one.
External viewpoint
An external perspective of your company is brought to the table by outside general counsel. As a result, your external general counsel can provide an impartial, third-party viewpoint from a perspective distinct from your company’s internal divisions. Owners of businesses are understandably emotionally invested in their company and are often very close to its problems. Making wise decisions can be aided by having a second, independent voice outside the company. The attorneys at Newburn Law are seasoned professionals with degrees in business who can offer a functional legal and strategic “second look” at your company’s operations.
Cut down on risks and errors
The adage “You don’t know what you don’t know” is accurate. An outside general counsel’s broad legal experience can be extremely helpful in directing and bolstering the expansion of your company. They can assist you in navigating the complex web of rules, laws, and potential hazards that business owners frequently run.
Geographic diversity is the second benefit
The success of many start-ups operating across state and national borders depends on having outside general counsel. It could be necessary to thoroughly review all applicable rules and regulations to enter new markets. You can steer clear of legal blunders and negotiate these murky waters with the assistance of your outside general counsel.
Being ready
Your outside general counsel will be familiar with your company’s operations. They will get prepared to handle any issues before they arise and work with you to lower the risk when they do. As they are not workers, they can also offer an objective assessment of the legal matters of your business.
Adaptability
Unlike in-house general counsel, you don’t sign a long-term contract when working with outside general counsel. To determine whether an outside counsel is a good fit, you can choose to try them out. There are no contracts for employment that charge you money if you want to end it early. You can make decisions for your business with greater ease and flexibility when you work with outside counsel.
Efficacy
Using outside general counsel for routine matters will be beneficial for large companies. You’ll have to spend a lot of time screening and interviewing candidates until you find one comfortable working with them if you don’t already have a legal advisor experienced in handling business matters, including the capacity to review and negotiate these agreements. Since small businesses can hire a lone practitioner as needed, they can also benefit from these advantages. For instance, you’ve closed on your largest sale to date, but the buyer wants you to sign a big contract that serves as a permanent record of the terms of your agreement.
Cost-effectiveness
Legal issues are not unusual for tech companies, especially in their early phases. Early on in the life of your company, you may encounter legal challenges, such as questions about intellectual property, compliance, and employee conflicts.Here’s where retaining outside legal counsel can be a practical substitute. You can pay for the services you require when you work with outside counsel. A few outside general counsel firms (like Hood Venture Counsel) also provide a full range of legal services with on-call availability. With this fee schedule, you can obtain legal protection without your budget.
Encouraging inclusion & diversity
One of the best methods to create genuine business value is through a diverse supplier base, and general counsel (GC) are beginning to understand the significance of DEI (diversity, equity, and inclusion) about their outside counsel. More than ever, organisations are urged to increase their diversity, equity, and inclusion (DEI) by hiring vendors, including outside counsel. Diverse outside counsel teams contribute dynamic perspectives that result in novel and successful strategies and advice.
Knowledge of your industry
Bringing an outside viewpoint does not imply that an outside general counsel won’t understand the subtleties of your company. To properly advise you, your outside general counsel will thoroughly understand your company’s goals and operations. They will remain an integral part of your team. Furthermore, outside general counsel is better equipped to foresee potential problems in business dealings and take preventative measures to avoid them because of their specialised knowledge gained from working with other companies.
Conclusion
There are several reasons why hiring an outside general counsel can be beneficial, even if your company has an internal legal team. For example, you might take outside counsel to collaborate with the business’s attorneys on a particular matter. External legal counsel could possess expertise in specific legal domains and offer supplementary services.
