Why your business needs outside legal and business counsel

The media and entertainment industries are undergoing sweeping transformations. Technological advances and new delivery models continue to reshape how content and information are created and consumed. With the arrival and convergence of AI, machine learning, blockchain, AR, VR, 5G, and cloud-based computing, this occurs in real-time. These evolutions are also challenging current business model constructs and forcing executives and business owners to rethink how they operate so that they can capitalize on these disruptions.

More and more, organizations are looking to outside law firms that can provide them with a complete off-site business & legal affairs team. In this fast-evolving environment, organizations must have the capability and the resources to tackle various business and legal issues.

While in-house teams may be well-versed in their organization's immediate legal needs, outside firms are often better positioned to address broader business challenges, allowing for more informed decision-making. Legal issues involving intellectual property, regulatory compliance, privacy and data protection, cybersecurity, and employment law are dynamic and complex, requiring specialized knowledge. With access to a wider breadth of legal resources and subject matter expertise, organizations can mitigate risks, avoid costly litigation, and ensure compliance with the latest laws and regulations.

It's also important to note that partnering with outside business and legal counsel often extends beyond legal advice. Many firms have extensive networks of industry professionals, advisors, and consultants. This access can be invaluable to your business needs.

Additionally, maintaining an in-house legal department can be costly. When a business outsources its business and legal affairs work, it eliminates the need for attorneys on their payroll. This approach is a much more cost-effective option for an organization - particularly for startups or small businesses. Salary costs, benefits, office space, and continuing education for full-time employees add up quickly. By outsourcing your business and legal affairs work, organizations can keep legal costs down, thus reducing overhead expenses.

Hiring outside counsel also allows organizations to scale legal services to their needs in an "accordion" fashion. Rather than incurring an ongoing overhead expense, organizations can engage outside firms on a project-by-project basis, paying only for the required time and services. This flexibility allows organizations to manage legal costs more effectively, especially during periods of fluctuating demand.

Moreover, many law firms offer alternative fee structures, including fixed fees or retainer arrangements, allowing organizations to control their expenses better. This level of financial flexibility is crucial for organizations looking to optimize their legal operations while maintaining high-quality output.

Today's firms must also set themselves apart as competent, high-quality legal advisors and functional business-minded partners. They must propel their clients forward. Being a capable firm with competent attorneys may get you in the door, but what sets a firm apart is its ability to be a strong strategic partner that not only understands its client's business, its environment and its mechanisms, but can also apply that knowledge in a way that propels their clients toward their business goals.

Becoming a strategic business partner requires firms to examine and understand their clients' complex situations from a business perspective first, then turn their focus to any legal implications. Often, the legal question is only a small part of a bigger issue, requiring firms to consistently acknowledge and integrate the broader business context surrounding the legal issue or question.

In today's fast-paced business environment, the need for expert legal guidance is more critical than ever. Attorneys must have a broad understanding of the business sector they're operating in while also understanding the mechanics of the business in a way that is helpful not only to their client's legal needs but also to their client's business growth. By engaging outside business and legal counsel, organizations can enhance operational efficiency, improve decision-making, and reduce costs, positioning themselves for long-term success and stability.

Quincy C. Newell is founder and co-managing partner at Newell Law Group.