May 26, 2022

fastest growing startup Get it well before you hire your first in-house lawyer. It’s not that startups don’t have serious legal work to do. But in the early stages of development, it almost always makes sense to outsource all legal work. It’s a matter of allocating scarce resources, and most startups can only get by with external mentors.

So, when is the right time to hire a corporate lawyer? There is both an art and a science to judge. Let’s take a closer look at some of the key factors.

Is legal work enough to hire a full-time lawyer?

It may seem like your startup has a lot of legal work, but think carefully about whether this work (30 to 40 hours a week) is enough to keep a full-time lawyer busy. And even if there is so much work at the moment, determine if this is due to unusual circumstances (such as a lawsuit) that led to a large, but time-consuming external consultants.

It’s best to hire your first in-house lawyer when it gets a little frustrating – when you start to lose weight – very early in your business life cycle.

It’s best to hire your first in-house lawyer when it gets a little frustrating – when you start to lose weight – very early in your business life cycle. Unlike some other positions that may need to be filled, you can find highly trained outside lawyers to fill the gap as you require ongoing support. But don’t delay: legal issues can affect the performance of an organization, the burden of which most often falls on the shoulders of the founders and key executives.

As a general rule, plan to hire when your outside legal costs are about twice the cost of hiring a good in-house lawyer who has to handle a fairly large amount of work. which is now outsourced and manages external legal assistance more effectively.

When evaluating current legal costs, consider whether your company has underinvested in legal matters such as contracts, intellectual property, and employment policy. More legal work can be done than you think – it will simply be closed, and the in-house lawyer will have to clear everything up.

Leave a Reply

Your email address will not be published.