An intelligent approach to legal expertise: Why your business can thrive with a fractional general counsel

Written by Andrew McDonald, legal director of Lodders Solicitors LLP

For many growing businesses, there comes a critical point when the legal complexities of scaling become too significant to ignore.

From navigating intricate contracts and intellectual property rights to managing compliance and regulatory issues, the legal demands can become overwhelming for founders and c-suite executives.

However, the cost of hiring a full-time, senior-level General Counsel (GC) is often prohibitively expensive. This is where the fractional GC model emerges as a strategic, cost-effective, and flexible solution.

A fractional GC is a seasoned legal professional who provides senior-level, in-house legal expertise on a part-time or project-based arrangement.

They become a deeply integrated part of your team, offering strategic legal guidance that is perfectly aligned with your business goals, but without the overhead costs of a permanent hire.

This innovative approach is reshaping legal leadership and enabling a new generation of agile companies to build a strong legal foundation for sustainable growth.

The financial and strategic benefits

For startups and small-to-medium enterprises (SMEs), the most compelling argument for a fractional GC is often the significant cost saving.

Instead of a substantial, fixed salary and benefits package, businesses can access top-tier legal talent through flexible billing arrangements, such as a monthly retainer, hourly rates, or fixed fees for specific projects.

This predictable legal spend allows companies to budget effectively while still receiving expert legal oversight.

Beyond mere cost savings, the fractional model offers immense strategic value.

Unlike an external law firm that operates on a transactional basis, a fractional GC becomes a true business partner.

By embedding themselves within the company, they gain an intimate understanding of the company's strategy, operations, and culture.

This enables them to provide proactive, business-enabling advice that mitigates risk before it escalates into a costly and time-consuming issue.

This foresight is especially critical for:

Rapid growth: During periods of expansion, mergers, or market entry, a fractional GC ensures your legal strategy scales effectively with the business.

Investor relations: Preparing for fundraising rounds or exits requires robust legal due diligence. A fractional GC can streamline this process and build investor confidence by demonstrating a solid legal foundation.

Commercial contracts: For high-growth companies, a fractional GC can help accelerate the sales cycle by managing and professionalising contract processes, which improves cash flow and reduces bottlenecks.

Flexibility and adaptability for a dynamic market

The modern business landscape is defined by its rapid pace of change.

Market conditions, technology, and regulations can shift quickly, requiring a legal strategy that is both robust and adaptable. The fractional GC model is built on this principle of agility.

A company's legal needs are not static.

They can fluctuate depending on business cycles, project timelines, or market changes.

A fractional GC offers a level of flexibility that traditional models simply cannot match.

During periods of high legal demand—such as a merger and acquisition (M&A) or a major product launch—their involvement can be scaled up.

When demand eases, their hours can be reduced. This scalability is a major advantage for businesses that need to remain nimble and avoid unnecessary overhead.

Moreover, the diverse experience that fractional GCs bring to the table is invaluable.

Having worked with a portfolio of different clients and across various industries, they offer a breadth of knowledge and fresh perspective.

This allows them to "cross-pollinate" best practices and innovative strategies across different sectors, providing your business with a competitive edge.

More than just a lawyer: a strategic advisor

Unlike a traditional law firm that is reactive and focused on a single transaction, a fractional GC is a proactive, strategic partner.

Their role goes far beyond simply reviewing documents. They act as a central hub, connecting leadership, external counsel, and internal teams to ensure that legal decisions support overarching business goals.

This level of integration is a game-changer for many companies, especially those without an established internal legal function.

A fractional GC can:

Demystify legal services: They act as an in-house expert who can manage the relationship and project flow with external law firms, ensuring that specialized legal advice is used efficiently and cost-effectively.

Build internal legal processes: They can set up and manage internal legal functions from scratch, implementing systems and processes to manage workflow, budget, and risk.

Act as an expert procurement officer: For highly specialised legal matters, a fractional GC can help identify and instruct the right external counsel, ensuring the best advice at an optimal cost.

The ideal time to hire a fractional GC

So, when is the right time to consider a fractional GC? The answer depends on your business's unique needs, but several indicators suggest that this model could be the right fit:

Your external legal spend is becoming unpredictable or excessive.

Your executive team is being distracted by day-to-day legal issues.

You are preparing for a significant milestone, such as a fundraising round or exit.

You are experiencing rapid growth, entering new markets, or dealing with increased regulatory scrutiny.

You need senior-level legal oversight but do not have the budget or volume of work for a full-time hire.

The way forward for modern businesses

The rise of the fractional General Counsel is not just a passing trend; it's a reflection of how businesses are evolving.

In a world that demands agility, cost-effectiveness, and strategic foresight, the traditional approach to legal resourcing no longer fits every business model.

By embracing a fractional GC, companies can access high-quality, senior legal expertise on their own terms.

This model provides the strategic guidance and proactive risk management needed to build a strong, legally compliant foundation for growth, without the financial burden of a full-time hire.

For any business looking to scale responsibly and confidently, a fractional General Counsel is no longer a luxury but an intelligent and strategic necessity.

Please get in touch if you want to discover how a fractional General Counsel can specifically empower your organisation's journey and take the next step towards smarter and more strategic legal support.