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59. Simple Financial Strategies for Growing a Contingency Fee Law Firm

In this Financially Legal episode, host Emery Wager sits down with Lem Garcia, founder of Lem Garcia Law, to explore how he grew his firm from humble beginnings to serving over 1,000 clients with a 20-person team. Lem shares his journey starting with Craigslist furniture and a modest office space to becoming a blueprint for aspiring law firm owners.

 

The Journey Begins

Lem’s story starts in 2014, when he was newly married, expecting his first child, and unemployed. Facing immense pressure, he decided to open his own law firm. With no significant resources, Lem leased a 450-square-foot office near his parents’ house and purchased furniture from Craigslist—even negotiating the price down with the seller. He credits these challenging circumstances with pushing him to give his all to the firm.

“If you go all in, investing your time, energy, and spirit, you can make it happen,” Lem said.

The First Clients and Growth Philosophy

In the early days, signing a client wasn’t immediately financially rewarding, as Lem’s firm operates on a contingency fee basis. Instead, the true milestone came when he successfully resolved his first case. This validation encouraged him to continue growing the firm.

Rather than relying on costly advertising like billboards, Lem focused on building his practice organically. His strategy: take care of one client at a time, deliver excellent service, and rely on word-of-mouth referrals. Lem’s belief in providing value—even to those he couldn’t represent—helped him establish a reputation for being approachable and trustworthy. Positive reviews and referrals became the foundation of his growth.

Key Lessons for Law Firm Growth

Lem’s approach offers valuable insights for law firm owners:

  • Client Care Can Be Your Acquisition Strategy: Treat every client with respect and empathy, even if their case falls outside your expertise. Refer them to someone who can help and provide value in any way possible. This philosophy generates client referrals at a low cost of acquisition. Lem grows his firm at the pace of his referrals to avoid expensive, risky marketing.  

  • Live Modestly and Stay Risk-Averse: Lem avoided overspending, ensuring his firm operated within its means. By keeping overhead low, he could focus on sustainable growth rather than relying on uncertain outcomes from large cases.

  • You Should Never NEED a Case to Settle: Lem’s firm carefully selects cases, balancing big risks with reliable cash flow. For larger, more resource-intensive cases, he partners with other firms to mitigate financial risk while ensuring clients receive the best possible outcomes. He avoids putting his firm in a situation where they need a case to resolve to make payroll.  
  • Build a Financial Buffer: Lem maintains 5-6 months of operating expenses in his business account to safeguard the firm during lean times, a lesson reinforced during the pandemic when case volumes dipped.

Blueprint for the Next Generation

When asked about his legacy, Lem expressed his hope to serve as a model for other aspiring law firm owners. His advice is straightforward: commit fully, embrace discomfort, and be willing to put yourself out there. “If you’re all in, every waking moment thinking about how to grow your firm, you’ll find a way to make it happen,” he said.

Going Further

If you want to learn more or connect with Lem Garcia, you can reach him on his website lemgarcialaw.com or text him at 626-252-2168. Lem’s story proves that with determination, resourcefulness, and a client-first mindset, building a successful law firm is within reach.

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