As an entrepreneur — and especially if you’re just starting out — there is never enough time to finish everything you want to accomplish. Success isn’t possible without delegating certain tasks. It’s the reason successful startups hire specialized freelance contractors to help them with their workload and save them time.
In fact, outsourcing crucial tasks might be the key to achieving success. After studying 2,000 companies over 10 years, experts in Bain & Company’s global capability sourcing practice found that only one of ten companies could sustain profitable growth. However, 85 percent of those that succeeded did so by outsourcing work as a core part of their growth strategy.
Relying on legal outsourcing is one strategy that all entrepreneurs should consider. By contracting out your legal work, you can save both time and money on complex tasks. Here are some reasons it makes sense for many businesses:
Startup Founders Most Likely Lack Legal Knowledge
A recent study found that while over half of small business owners lack legal expertise, only 26 percent of small businesses actually employ even part-time legal help. While there is always a cost associated with legal outsourcing, there is also a cost associated with forming your business improperly. Filing improper legal forms could result in higher taxes, penalties, or loss of loans or investment capital.
Legal Outsourcing Early On Saves Time and Money Later
“If you are being sued, it’s too late,” says Cliff Ennico, Editor-in-Chief of the New York State Bar Association’s handbook on New York corporations. You might think consulting with a lawyer is too costly when starting a business. But according to Ennico, it’s worth it. “The fee a lawyer will charge to keep you out of trouble is only a small fraction of the fee a lawyer will charge to get you out of trouble once it’s happened,” he says.
From structuring your business and leasing office space to negotiating contracts and filing for business licenses, early and frequent use of legal outsourcing can save you a lot of money later on.
It’s Cost Effective
With new startups and technological innovations, legal outsourcing is becoming easier to provide with less overhead. With highly refined document review and legal search technologies, high quality lawyers are now able to provide their services for a fraction of what they used to charge, says Cari Sommer, CEO of Sommer Communications Group. This makes finding reasonable prices for good legal services easier and easier.
Lawyers are More Flexible and Available
New innovations also make legal outsourcing more convenient for your schedule. With video conferencing and electronic signatures, you might never have to meet in person. You’ll save even more time and be able to focus on growing your business.