If your business has grown to the point where legal issues arise regularly, you’ve probably wondered: Is it time to hire a general counsel? Should we stick with our law firm? Is there another option?
The answer depends on your business’s specific needs, but many growing companies find themselves stuck between two imperfect choices—until they discover there’s a third path.
OPTION 1: THE FULL-TIME GENERAL COUNSEL
Hiring a full-time general counsel makes sense for companies with substantial, continuous legal needs. You get someone fully embedded in your business, available whenever you need them, deeply familiar with every aspect of your operations.
The true cost, however, extends well beyond salary. A competent GC commands $200,000 to $400,000 or more in total compensation. Add benefits, office space, technology, continuing education, and management overhead, and you’re looking at a significant fixed cost—whether you need 40 hours of legal work that week or four.
For companies with $100 million or more in revenue, complex regulatory requirements, or constant deal flow, this investment often makes sense. For growing businesses in the $5 million to $50 million range? It’s frequently overkill—like buying a commercial kitchen when you need to cook dinner twice a week.
OPTION 2: THE TRADITIONAL LAW FIRM
Most businesses default to this model: find a law firm, call when you need something, and pay by the hour or project.
The advantages are real. You get access to specialists when specialized needs arise. You pay only for what you use. You’re not carrying fixed overhead.
But the disadvantages are equally real. Your law firm doesn’t know your business the way an in-house attorney would. They’re incentivized to be thorough (read: bill more hours), not efficient. Every call starts the meter. And because they’re not embedded in your operations, they can’t see around corners for you—they can only react to problems you bring them.
Here’s the blunt truth: if you’re using a traditional law firm as your primary legal resource, you’re probably paying too much and getting underserved. You’re getting a Rolls-Royce for every single problem, when sometimes you just need reliable transportation.
OPTION 3: THE OUTSIDE GENERAL COUNSEL MODEL
The Outside GC model sits at the crossroads of these two options, combining the best attributes of each while avoiding most of the drawbacks.
Like an in-house counsel, your Outside GC attorney functions as a consistent legal expert for your company. They know your business, your industry, your contracts, and your people. They’re available on demand. They become part of your senior leadership team and can provide strategic guidance, not just reactive legal work.
Like a traditional firm, you get flexibility and scalability without fixed overhead. You’re not paying a full-time salary for part-time needs. And when specialized expertise is required—complex litigation, a patent application, a major transaction—your Outside GC can coordinate and oversee outside specialists while ensuring they’re working efficiently on your behalf.
The pricing model is different too. Instead of billable hours that incentivize thoroughness over efficiency, Outside GC operates on a fixed monthly fee. You know exactly what your legal function costs. You can call, email, or text without watching a meter. And because we’re not selling hours, we’re focused on what you actually need: good legal outcomes that support your business objectives.
WHICH MODEL FITS YOUR BUSINESS?
Consider these questions:
How often do legal issues arise in your business? If it’s daily, you might need full-time support. If it’s monthly or quarterly, you probably don’t. If it’s weekly but not daily, the fractional model often fits perfectly.
What’s your annual legal spend? If you’re paying a law firm $100,000 or more annually but not getting proactive guidance, you’re likely a candidate for a better model. If you’re spending less than $30,000, your needs might still be light enough for project-based work.
Do you have someone who understands both law AND your business? If every legal conversation requires extensive context-setting, you’re not getting the strategic value legal counsel should provide.
Are you avoiding legal questions because of cost concerns? This is perhaps the most telling indicator. If the billing model is preventing you from getting guidance you need, the model isn’t serving you.
MAKING THE TRANSITION
Moving from a traditional law firm relationship to an Outside GC model doesn’t have to be disruptive. Most businesses maintain their existing law firm relationships for specialized matters while their Outside GC handles day-to-day needs and provides strategic oversight.
The key is finding an Outside GC partner whose attorneys have the in-house experience to understand your business perspective, not just the legal technicalities. Law firms, by and large, are not good at being general counsel. Their attorneys haven’t worked in-house. They don’t understand the corporate perspective. They provide perfect legal answers that don’t correlate with perfect business outcomes.
FINDING YOUR FIT
Every business is different, and the right legal model depends on your specific situation. But if you’re a growing business caught between needing more legal support than a traditional firm provides and less than a full-time hire requires, the Outside GC model deserves serious consideration.
We’re happy to discuss whether our approach might fit your needs—no meter running.
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