His Company Lost $7 Million on One Job | Ryan Schmitt
Connect With Chaz Ryan Schmitt's company lost about $7 million on one job, and he now calls it his most impactful project. If you run a contractor business and one bad job could sink you, this episode shows you how an owner walked back from the edge. In 2018, Ryan's heavy civil firm in Jacksonville lost its bonding. He recapitalized the company, sold every asset with equity, and borrowed $2 million from a peer in his business group. He had chest pains and kept his key man life insurance because he was not sure he would make it. He never had a single employee leave. Today, 230 people work for Petticoat-Schmitt. They hear the financials every Monday at 3:30, share in the profits, and are on track to own the company through an ESOP. You will learn how Ryan rebuilt around his people and why he gave up his office. Key Takeaways Tell your spouse first. Ryan's business group told him to go home and tell his wife before anyone else. She said, "As long as we're together, that's all that matters." Relationship capital is real capital. A peer lent Ryan $2 million and a surety contact showed up at his office the next morning because they knew his character. Transparency did not cause a stampede. Ryan shared the full financial picture during the worst of it. Every other company was hiring, and his people stayed. Get out of your office. Ryan now has no office. He meets crews on job sites with biscuits and asks, "What would you do if you were me?" Profit sharing turns workers into partners. Project and company level profit sharing gave his team a reason to fight through the rebuild, and the ESOP formalizes it. Run the business on a plan everyone sees. Ryan uses EOS, a daily 7 to 8 minute company huddle, and walks every new hire through the plan himself. Chapters 00:00 Inside a 230 Person Heavy Civil Firm 03:17 From Petticoat Contracting to 230 Employees 06:12 Why He Chose a Win Win Deal 09:43 The Valley of Darkness and $7M Loss 21:56 Chest Pains and a $2 Million Loan 28:57 Why He Gave Up His Office 32:57 Digger Day for Kids With Cancer 37:49 Patience and How to Connect With Ryan Make More Money. Work Less. Win At Home. If you're a contractor business owner doing $1M+ and you feel stuck in the day-to-day, we built GTK for you. Through peer mastermind and 1:1 coaching, we help you: increase profit install real systems build a team that runs the business get your time back Get the free Owner Time Audit at gatheringthekings.com/timeaudit. It is a simple worksheet that shows you where your week really goes. We email it to you as a PDF within minutes. Connect With Ryan Schmitt: LinkedIn: https://www.linkedin.com/in/ryan-schmitt-14866587/ Website: https://www.petticoatschmitt.com/ Facebook: https://www.facebook.com/petticoatschmitt Instagram: https://www.instagram.com/petticoatschmitt/ YouTube: https://www.youtube.com/channel/UCPPhiL7wjPWpFPH30VqMcbQ Connect with Chaz Wolfe (Host): Website Facebook Instagram LinkedIn YouTube Profit Starts with Better Books! Clean books. Clear reports. Monthly bookkeeping built by business owners, for business owners. Disclaimer: This post contains affiliate links. If you make a purchase, I may receive a commission at no extra cost to you. Support the show Like what you heard? Share this episode with a friend and leave us a review on Apple Podcasts or Spotify! Join the conversation by visiting GatheringTheKings.com and apply to connect with other high-performing entrepreneurs and their families.
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