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Harnessing the Power of Fractional General Counsel: A Strategic Move for SMBs

The legal landscape is an intricate web, riddled with ever-evolving complexities that can bewilder even the most experienced business owners. This intricate terrain is especially challenging for small to medium-sized businesses (SMBs), which need expert legal advice that is tailored to their needs, readily available, yet doesn’t break the bank. The traditional full-time, in-house counsel is often too costly and extensive for their requirements, whereas occasional assistance from an outside lawyer can be insufficient and reactive. However, by engaging a fractional general counsel, SMBs can access the right mix of legal services that are integrated, proactive, and cost-effective.

The Legal Needs of Small to Medium-Sized Businesses

SMBs operate in a challenging environment, where balancing growth with limited resources is a constant struggle. The array of legal matters they must navigate is wide—from ensuring regulatory compliance and drafting contracts to managing disputes and overseeing risk management. Without dedicated legal counsel, these responsibilities often fall on the business owner or other executives, diverting their focus from core business operations.

One of the primary legal needs of any business is to have a legal professional engaged with the business to help avoid legal complications. Such complications frequently lead to drawn-out, costly resolutions. In the worst scenarios, they can undermine a business’s reputation, disrupt operations, and even threaten its longevity.

Understanding the Value of a Fractional General Counsel

Enter the fractional general counsel, a model designed to provide businesses with the benefits of an in-house lawyer without the associated full-time costs. Businesses gain access to seasoned legal experts who can guide them through the complexities of the legal landscape on an as-needed basis.

It’s important to draw a comparison with traditional outside lawyers to fully understand the unique value proposition of a fractional general counsel. While both offer valuable legal services, the nature of their relationships with businesses differs. Traditional outside lawyers typically operate on a case-by-case or project-by-project basis, offering expert advice or representation in specific legal matters. They are engaged often reactively, stepping in when a legal issue has already arisen.

In contrast, a fractional general counsel is proactive and closely integrated into the company’s operations. They provide ongoing legal guidance and strategic advice across a broad spectrum of issues, helping mitigate potential legal risks before they escalate. Their role mirrors that of an in-house counsel but without the full-time commitment, providing businesses with an optimal blend of flexibility and cost-effectiveness. This model ensures businesses have regular, ready access to legal expertise—a significant advantage in preventing legal complications and providing proactive support.

The Role of a Fractional General Counsel

A fractional general counsel is more than just a lawyer offering advice. They are a strategic advisor whose role aligns with the business’s objectives. Their responsibilities extend across a spectrum of legal affairs, from reviewing and preparing contracts to ensuring regulatory compliance. They provide an overarching legal perspective that integrates seamlessly with the business strategy, fostering risk mitigation and establishing a sturdy legal foundation.

Moreover, their role becomes even more dynamic when specialized insight is required. For instance, in complex domains such as intellectual property, a fractional general counsel coordinates with trusted colleagues to deliver high-quality results. This collaboration further enhances the depth and breadth of the legal guidance provided, ensuring the business’s needs are addressed comprehensively and effectively.

From negotiating business transactions and managing contract issues to mitigating employment-related risks and advising on data privacy matters, a fractional general counsel’s role is as versatile as the business itself. They play a crucial part in steering the course of the company, identifying potential legal issues before they escalate, and providing proactive solutions. This ensures the business stays ahead of potential legal complications, thereby ensuring smooth operations and sustained growth.

How to Effectively Utilize a Fractional General Counsel

The effective utilization of a fractional general counsel goes beyond simply hiring and assigning tasks. They need to be seamlessly integrated into your business, keeping them abreast of your operations, goals, and strategies. Frequent and open communication is essential in ensuring they fully understand your business and can provide tailored, proactive legal advice.

The fractional general counsel should be viewed as an integral part of the strategic team, not a mere external consultant. Regularly involving them in discussions about business strategies and plans allows them to provide more valuable insights. They can anticipate legal complications that might arise from business decisions, helping to circumnavigate potential legal pitfalls.

Key Considerations When Hiring a Fractional General Counsel

Hiring a fractional general counsel requires careful consideration. Key factors include their expertise, particularly in relation to your industry and specific business needs. Furthermore, their communication style, responsiveness, and fit with your company culture are crucial aspects to consider.

Additionally, the level of commitment that they can provide should align with your needs. For some businesses, a few hours per week of legal counsel might suffice, whereas others may require more support. It’s essential to discuss these needs and expectations upfront to ensure a productive relationship.


In today’s rapidly changing business environment, SMBs need flexible, strategic, and cost-effective solutions to navigate their legal landscape. A fractional general counsel model offers not only financial flexibility but also access to specialized legal knowledge when needed.

For SMBs poised for growth, integrating a fractional general counsel into their strategic planning is an important step. As an investment, it offers significant returns, ensuring the business’s legal footing is secure, thereby safeguarding its future success. 

To learn more about Dalton & Tomich’s fractional general counsel services, please contact Zana Tomich.

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