A Smarter Billing Approach for Startups and Entrepreneurs with Free Vector Advisors
Only 1 in 6 in-house lawyers say that hourly billing is their preferred fee arrangement with outside counsel. With this in mind, the team at Free Vector Advisors sides with the majority. Lawyers are a conservative bunch. You can’t blame us when the foundation of our profession is built on incremental changes to what came before, there’s minimal incentive to challenge precedent.
Billing by the hour is the legal industry’s comfort zone. Every new matter carries a degree of uncertainty, and hourly billing protects the attorney from downside risk if things take longer than expected, whether due to a wrinkle in the facts or simple inefficiency. The question is: Is the billable hour in the best interest of the client, especially for startups, entrepreneurs, and growing businesses? Our expert attorneys at Free Vector Advisors think not.
The Problem with Hourly Billing for Small Businesses
1. It Discourages Timely Communication
It is no secret, and our team has witnessed and experienced firsthand, how the “meter’s running” mentality deters clients from calling their lawyer or sharing all the necessary information. This often leads to costlier problems down the line. When clients avoid compounding “hours” by limiting interactions, it undercuts the benefits of the business relationship.
2. It Is Unpredictable and Non-Budget Friendly
Legal needs don’t follow a neat schedule. And the most expensive legal work, like litigation or mergers and acquisitions, is often the least predictable. Hourly billing makes it nearly impossible for clients to plan ahead.
3. It Damages Trust and Collaboration
Long-term value comes from a deep understanding of a client’s business. That kind of trusted advisor relationship is hard to build when clients are watching the clock. Larger companies solve this by hiring in-house counsel, but most small businesses don’t have that option.
Free Vector Advisors Provide a Value-Based Alternative to Hourly Billing
The attorneys at Free Vector Advisors love working with growth-oriented startups and entrepreneurs. That’s why we offer value-based fee structures designed to be predictable, affordable, and aligned with our clients’ goals.
Flat-Fee Legal Services:
- Essential legal work for startups, like entity formation, drafting core documents, and trademark filings, at a predictable cost.
Monthly Retainer Packages:
- For established businesses, our monthly retainer provides: Unlimited phone, email, and messaging access, scheduled monthly legal strategy sessions, and a shared online legal workspace.
Our model mirrors the benefits of in-house counsel without the full-time cost. According to a recent study, 5 out of 6 in-house lawyers would prefer a non-hourly billing structure, a sentiment with which we are confident that most small business owners and entrepreneurs feel the same.
Small Business Billing Strategy with Free Vector Advisors
Our experienced entrepreneurial attorneys at Free Vector Advisors offer small businesses the opportunity to create increased business value, understand the importance of trusted legal counsel, and learn about value-based services.