Top 3 Benefits of Hiring Outsourced Legal Counsel During Economic Uncertainty By: Beth Lebowitz
Business owners and leadership are currently facing unprecedented economic challenges, making finances a top concern. While most have faced business and financial hardships in the past, we’re being made painfully aware that history has a way of repeating itself, and if we don’t learn from it, we’re bound to repeat past mistakes and failures to plan ahead.
In the modern workplace, collaboration and communication are relied on like never before. In order to get things done, teams require employees to join forces both efficiently and considerately. Hiring outsourced legal counsel can be a positive addition to your team, especially during times of economic uncertainty. Here are our top 3 benefits of hiring an outsourced GC to help your business though these stressful situations.
Reduced Overhead Expense
Outsourced GCs can be brought into your company much more easily than a full-time GC, because the logistics of hiring an outsourced GC better fit within most needs and budget. Rather than paying a W2 salaried package, including benefits, bonuses, and options, your company instead pays a flat monthly fee to an outsourced GC that works within your specific legal budget and on terms that make sense for you and the attorney. More importantly, your business can acquire the kind of leadership and legal advice from a senior attorney that’s usually reserved for larger companies.
Auxana GCs promote the intelligent use of resources, which means economical and productive solutions leading to positive outcomes for your business. Auxana attorneys are here to find the most efficient and transparent ways to meet your business’ goals, turning your legal department into a growth engine, rather than just another cost center.
This also means that you won’t get stuck in a bad contract or with bad hire. If you come to the realization that your hired law firm or in-house counsel isn’t a great fit for your organization, you’re likely facing the reality of having to break a contract, let a contract run its course, or going through the termination process. None of these options are preferable, economical, or efficient uses of your time. With Auxana, you can feel confident in engaging with our vetted and experienced outsourced GCs. Worse case scenario? Even if you decide that your Auxana attorney isn’t the right fit, outsourced gc engagements can be month-to-month, allowing you the freedom to cancel at any time. Membership for company access to our directory is free, for as long as it takes for you to find that right fit.
By fully exploring the option of using an outsourced GC before hiring a full-time attorney, you may just discover that outsourced legal expertise more effectively meets your needs, while simultaneously decreasing your overall expenses. This is a critical consideration and part of maintaining your business during periods of economic difficulty.
Throughout the ebb-and-flow of various business and economic situations, legal requirements also tend to shift between one-time projects and recurring needs. However, just because your organization may require more legal help, doesn’t mean that you’re ready to budget for a full-time hire.
Part of why the Outsourced GC model is so effective is that it allows many companies to employ in-house legal counsel regardless of their business lifecycle or circumstance. The point is, most SMBs and growth stage companies don’t need a full-time in-house attorney. The majority of the time, there just isn’t enough consistent work to support the salary. In fact, hiring a full-time GC can easily cost your business over $200,000 each year! But when you do recognize the need for in-house legal services, you can greatly benefit from a fractional legal executive “shared services” concept in which an attorney with expertise in a distinct industry can work to successfully support multiple companies, including yours.
Utilizing an outsourced GC means that you can scale up or down as needed. Are you finding that you have the need for full-time in-house legal? It’s easy to make the switch. Conversely, it’s also much easier to scale back your legal services than it is to let go of an in-house attorney.
Increased Risk Mitigation
Risk is inherent to being in business so legal counsel is a must, regardless of the economic climate. But especially in times of concern, a trusted legal advisor can provide increased risk mitigation, which can mean the difference between sinking and swimming. Experienced and specialized legal counsel will be able to analyze your business’ situation, and provide proper guidance on how to plan for any unforeseen impacts of uncertain economic situations, such as what many of us are currently facing because of COVID-19. This is especially true for assistance dealing with crisis planning, navigating financial uncertainty in your industry, and helping to ensure that your business stays afloat during difficult financial times. Their expertise often allows them to anticipate legal situations that your leadership may not see coming; being proactive is always more cost effective than being reactive!
Don’t open your business to undue stress, and certainly don’t expose your company to additional risk by allowing legal matters to slip through the cracks. Bringing in an outsourced legal advisor can be an important step in your organization’s continued success and growth, especially once economic stressors subside.
Failing to Prepare = Preparing to Fail
It’s impossible to know when our next economic downturn will be, or its potential impact on your business. One action that you can take is to find a vetted, trusted legal counsel to help your company today, as well as when that time comes again in the future.
Businesses can utilize Auxana to not only locate outsourced GCs who specialize in the type of business counsel they require, but who also make a great fit for their company’s culture, objectives, and vision. Beyond simply hiring legal counsel, your company has the opportunity to enlist a culturally-compatible legal partner, and this compatibility has the potential to evolve into a long-term, favorable partnership for everyone involved.