For small business owners, navigating the complex world of legalities can be daunting. While some might consider having an in-house attorney, there are compelling reasons to hire outside counsel instead. Why can outsourcing legal matters be a strategic advantage for small businesses?
1. Cost efficiency
Salaries for in-house counsel can add up to more than $200,000 per year. This can create financial challenges for small businesses with tight budgets or occasional legal needs. Instead, hiring outside counsel means you only pay for legal help when you need it. This often saves funds and lets you plan your budget around your current legal needs.
2. Support for your specific business needs
Whether handling occasional contract reviews or managing a full-scale litigation, outside lawyers can adjust their involvement based on what your business needs at the moment. For example, your business may only need occasional legal support. However, when legal issues arise, you can work more closely with an attorney with experience in business litigation as you resolve the issue.
3. Reduced risk of bias
In-house counsel might be quite close to the business, which can unintentionally skew their judgment. Outside lawyers are not part of your company’s day-to-day issues and can provide unbiased advice that really fits your legal needs. They might also spot opportunities that internal lawyers might miss, helping your leaders make better decisions.
4. Proactive risk management
External legal counsel can spot potential legal problems early and advise on how to avoid them. This proactive approach can prevent costly and lengthy legal battles later.
5. Focus on core business functions
Handling legal matters can be time-consuming and distract from core business activities. By outsourcing legal issues, business owners can focus on what they do best: running their business.
While it might seem convenient to have an in-house lawyer, the benefits of hiring outside counsel may outweigh this convenience. Small business owners should think about these advantages when choosing how to handle their legal matters.