The Benefits of an Outside General Counsel

The following is not legal advice and is for informational purposes only.

I have been fortunate to serve as an outside general counsel (OGC) for a number of smaller and medium sized businesses over the last several years. In that capacity I work with companies on a regular basis and I am available to handle legal and business issues on an as-needed basis. It provides an effective means for a company to access quality legal advice, in a cost-effective manner, without foregoing continuity.

Cost-Effective Legal Expertise

Hiring a full-time, in-house general counsel can be prohibitively expensive, especially for small and medium-sized businesses. Usually, it's often unnecessary, as the flow of legal work can vary, rarely requiring the constant attention of counsel. Outside general counsel provides access to top-tier legal expertise on a flexible, as-needed basis.

This arrangement allows businesses to pay for only the services they use, avoiding the overhead of a salaried attorney. Moreover, OGCs often work on retainer or hourly arrangements, giving companies the flexibility to control costs while receiving high-quality legal advice. I sometimes propose a hybrid model, providing a set number of hours per month, charging an hourly fee for anything beyond that baseline.

Broad Expertise Across Legal Domains

Outside general counsels typically bring a wealth of experience across various industries and legal disciplines. This broad expertise allows them to address diverse legal matters, such as employment law, intellectual property, regulatory compliance, and mergers and acquisitions. Their exposure to different sectors equips them to anticipate potential risks and offer practical, business-oriented solutions. This depth and versatility can be especially valuable for companies operating in highly regulated or fast-changing industries.

Objective and Unbiased Advice

One of the unique advantages of an outside general counsel is their ability to provide objective, third-party advice. Because they operate outside the company’s internal structures, they are less likely to be influenced by internal politics or biases. Yet because an OGC well versed in a company's business and issues, a new attorney doesn't have to be briefed and brought up to speed whenever an issue arises.

This independence ensures that their counsel is grounded in the best interests of the company, fostering sound decision-making. Whether resolving disputes or advising on strategic initiatives, OGCs bring a fresh perspective that complements internal leadership.

Scalability and Flexibility

As businesses grow or face fluctuating legal needs, an outside general counsel offers a scalable solution. Startups and smaller firms may only require occasional legal assistance, while larger enterprises might need more intensive support during periods of growth or change. An OGC can adjust their level of involvement to meet these needs, seamlessly integrating with internal teams when necessary or serving as the primary legal resource during critical times.

Focus on Strategic Planning

Legal issues often intersect with broader business goals. Outside general counsel can help align legal strategies with organizational objectives, supporting long-term planning and risk management. Their experience enables them to identify potential challenges before they escalate and develop proactive solutions. For example, they can assist with compliance programs, contract standardization, or intellectual property protections that safeguard the business while promoting growth.

Access to a Network of Specialists

Many outside general counsels maintain strong networks of legal and industry specialists. When a business faces a niche legal issue, an OGC can connect them with the right experts, such as tax attorneys, patent lawyers, or litigation specialists. This network ensures that businesses always have access to the best resources without maintaining a full-time legal team.

Conclusion

An outside general counsel is a strategic partner, offering businesses the legal expertise they need without the overhead of an in-house team. From cost savings and flexibility to broad expertise and unbiased advice, the benefits of engaging an OGC are clear. By leveraging this resource, companies can navigate legal complexities with confidence, ensuring they remain focused on their core business objectives. Whether you’re a startup building your foundation or an established company seeking to optimize your operations, an OGC could be the key to unlocking your next level of success.