The SAGE Philosophy:

The "Chief Legal Suite" is designed for growing companies that find themselves between the need for ad hoc legal help and full time in-house counsel.

Bridging the Gap: How a Fractional General Counsel Supports Growing Businesses

Some companies assume they can rely on outside law firms or in-house executives to handle legal matters as they arise. But this reactive approach often leads to higher costs, increased liability, and avoidable inefficiencies that stagnate growth. Here are the top five reasons why having a dedicated fractional general counsel is essential:

1. Proactive Risk Management

A fractional general counsel (GC) doesn’t just handle legal disputes; they help prevent them. By identifying risks early, reviewing contracts, and ensuring compliance with evolving laws, a fractional GC protects the company from potential pitfalls. The average cost of a contract lawsuit is roughly $150,000. Large companies know that avoiding costly legal battles is a far better strategy than hoping nothing will go wrong. For businesses looking to increase their market share, it is imperative to mitigate avoidable risks.

2. Cost Savings

While hiring a fractional GC requires an investment, it is far more cost-effective in the long run. Preventing lawsuits, avoiding regulatory fines, and negotiating favorable contracts can save businesses millions. When engaging a fractional GC for proactive services, you set a budget and take a metered approach to implement smart legal protections. Companies that do not plan ahead are forced to pay hourly rates for on-demand services. Having a dedicated fractional GC who can plan ahead and provide a roadmap for the highest and most impactful strategies first, companies have a much better chance of long-term success.  

3. Regulatory Compliance & Corporate Governance

Whether your business operates in construction, technology, or entertainment, the industry-specific regulations that apply to your company can be highly complex and often change rapidly with each political cycle. A fractional GC ensures your company stays compliant with federal, state, and industry regulations, no matter how the regulatory or political winds may blow. A fractional GC helps companies reduce the risk of legal violations and penalties, maintaining a positive reputation, which attracts higher caliber clients, vendors, and employees.

4. Strategic Legal Guidance

A fractional GC is not just a legal adviser; they are a strategic business partner. They provide insights into merger or acquisition opportunities, provide intellectual property protection, promote sound employment policies, and ensure contractual negotiations support long-term objectives. The biggest myth in small businesses is that legal is a cost center. More and more, large corporations are turning to lawyers to join their c-suite, reframing the role lawyers play in strategic planning.

5. Efficiency and Streamlined Legal Operations

Instead of engaging multiple law firms for different issues, a fractional GC centralizes legal functions, ensuring consistency and efficiency in handling legal issues. This helps avoid duplicated efforts and ensures cohesive legal strategies.