What a Fractional General Counsel Does for Startups and SMEs
The fractional executive ecosystem is thriving, and for good reason. Companies understand and appreciate the value that experienced legal and business executives can provide, particularly when resources are limited during the early and growth stages of the business lifecycle. Outside GC has been in this space for almost 25 years, serving companies across a range of industries by leveraging the significant talent and experience of former GCs and senior in-house counsel to support clients’ strategic initiatives and day-to-day legal needs.
A fractional general counsel helps startups and SMEs with a number of critical needs, including:
1. Risk Mitigation
Most founders and leadership teams are laser-focused on growing the business, with limited attention being given to the legal pitfalls inherent in some of their earliest decisions (how to structure the business, protecting valuable IP, and equity compensation plans, to name a few). Even with knowledge of these risks, many companies may simply lack the resources needed to hire a full-time in-house lawyer with the requisite experience or engage potentially costly law firm counsel. Because fractional GCs are a part-time resource, most companies can afford to hire them earlier on – gaining access to critical legal and industry knowledge that will not only help drive their growth, but also, proactively manage risk.
2. Actionable Legal Advice
In-house lawyers are trained to approach legal issues differently, by working collaboratively with internal business teams to develop creative, strategic solutions that balance a company’s day-to-day needs (e.g., managing a staff, balancing a budget, and hitting quarterly revenue targets) with larger organization priorities. Unlike in-house counsel, attorneys at law firms tend to advise from a more theoretical perspective given the inherent time and cost constraints of their model. As former in-house lawyers, fractional GCs bring a business-first approach to their work, resulting in more practical, thoughtful, and judgement-level legal advice.
3. Collaboration
The best leaders know when to seek input from colleagues and advisors. Simply put, collaboration fuels innovation. Whether brainstorming new ideas, discussing tactical options, or simply seeking a second set of eyes, founders and business leaders have much to gain from a trusted legal advisor. Because a fractional GC can be embedded in the business, legal works alongside your other core teams day to day, not just when a problem arises.
Fractional GC vs Full-Time GC: How to Compare the True Cost
Comparing a fractional general counsel to a full-time hire means looking past salary to the full cost of each option, and past the math to what each option actually delivers.
What a full-time GC really costs
Base salary is only the start. Add bonus or equity, benefits and payroll taxes, recruiting and onboarding, and infrastructure such as technology and admin support. Then there are the costs that don’t show up on a spreadsheet: the time to recruit, ramp up, and supervise a new hire, the cost of starting over if the hire isn’t the right fit, and the risk of committing to a role before it has fully matured. Many companies with a single in-house lawyer also continue to rely on outside counsel for work that requires specialized knowledge.
What a fractional GC costs
Outside GC attorneys are former GCs or senior in-house counsel, all with 15+ years of experience. For many engagements, you can get the support of a seasoned former general counsel without the cost of an in-house hire’s full-time salary and benefits.
Fractional engagements can include long-term, fixed-fee options that come with defined scopes and predictable pricing, and support can scale up or down as your needs change. When a matter calls for specialized knowledge, you have access to the entire Outside GC team.
Questions to run the comparison
- How many hours of legal work does the business generate each week, and how steady is that demand?
- How much of that work requires specialized knowledge?
- How much are you currently spending on outside counsel?
- Is the in-house role clearly defined yet, or still taking shape?
- How quickly do you need someone delivering value?
- How much flexibility will you need as the business grows or changes?
Hiring a full-time GC can absolutely be the right move, but not always, and maybe not right now. Flexibility, experience, and time to impact matter as much as the break-even point.
From Startup to Scale: How a Fractional GC Engagement Evolves
A fractional GC relationship is more than a stopgap. For some companies, it bridges the gap to a first in-house hire; for others, it grows with the business for the long term.
Early stage
Outside GC serves as the company’s general counsel, guiding the early decisions that carry long-term consequences. Beyond day-to-day legal needs, we help build the foundation of future legal functions, including policies, templates, and processes, without locking the company into permanent headcount before it’s ready.
Growth stage
As headcount and deal flow increase, the same embedded Outside GC attorney usually stays with the business, providing continuity across contracts, employment, and IP. When new needs arise, we bring in attorneys with specialized knowledge from our bench who collaborate behind the scenes. For example, one client, Astra Service Partners, grew from a few employees to more than 4,000 across 45 states with an Outside GC employment attorney supporting it through its growth and evolving needs.
Scale
When a company builds its own legal department, Outside GC works as an extension of that in-house team. We cover overflow work, critical projects, and other matters, help train and upskill team members, and stabilize operations during period of change, all without adding permanent headcount.
How Outside GC Structures Fractional General Counsel Engagements
Every Outside GC engagement is built around the client’s specific needs, scope and budget.
- Experienced counsel. Your fractional GC is a former general counsel, senior in-house lawyer, or subject matter expert with 15+ years of experience, who is expected to get up to speed quickly and can work with minimal oversight.
- Fixed-fee options with defined scope. Long-term, fixed-fee arrangements come with defined scopes and predictable pricing, so you know what you’re getting and what it will cost within the agreed scope.
- Flexible time commitments. Engagements are sized to your workload by hours per week, and can scale up or down as needs change.
- Remote or hybrid. Your attorney works the way your team works.
- Access to a full bench. Attorneys from across Outside GC can step in when a matter requires deeper knowledge.
In a traditional law firm model, partners often delegate work to associates who may focus on working on an ad hoc basis. At Outside GC, our partner-level attorney can be embedded in your company. That continuity often builds the trust and business context that lead to practical, strategic advice. You gain an experienced fractional attorney with in-house experience without the overhead of a full-time salary and benefits.
We encourage you to read more about the benefits of a fractional GC arrangement. Outside GC’s team works with companies of all sizes and industries, providing part-time GC services tailored to the specific needs of each client. If you are interested in learning more, please contact us.