What follows is a classic rendition of the American Dream-where someone can literally start from scratch and build a successful business by the steady application of a few basic principles. This is about the S.J. Burkhardt, Inc. company, which began as a 50-50 partnership with Steven John Schmitz (hence the S.J.), and his then brother-in-law, Chuck Burkhardt.

S.J. Burkhardt is in the underground business, specializing in sewers, water, storm drains, culverts, rip rap and channels. They are known by their reputation for quality work-based upon a solid set of principles and ethics. They work primarily in the Inland Empire, the High Desert and in the Low Desert where it stays nice and warm throughout the winter. This impressive underground construction company actually had its start in humble circumstances.

Which brings us to the first principle-the principle of familiarity. The root contains the word "family"-this is a key. Steven Schmitz grew up in the underground business, first working for his father when he was 15 years old. When business slowed down, Steven bought a backhoe and a dump truck and rented himself out to different contractors; and sometimes contracted under his father's company name.

Then, in 1973, Steven joined forces with his brother-in-law, Chuck Burkhardt, and started S.J. Burkhardt, Inc.. The business originated in Buena Park, California where they did a lot of small jobs, including sewer hook-ups on the weekends. They moved to Riverside, California in 1979, where they currently are located.

In time, the jobs steadily got bigger, and so their equipment needed to be bigger as well. At first they rented to accommodate the jobs. But after a few times of doing this, they realized they had the cash to buy, and so started buying their own equipment. It was at this point, having previously done almost everything with a backhoe, that Steven wondered how they had ever gotten by without the heavier equipment. He explains: "We felt we were pretty self-sufficient, when in reality we were not. We quickly learned that buying new was the way to go; as opposed to owning older equipment that required a lot of maintenance." They own and operate a variety of equipment such as John Deere, Caterpillar, and Hitachi excavators; John Deere, Kawasaki, and Caterpillar wheel-loaders; and a variety of rubber-tired backhoes.

A key business move that nearly doubled their income occurred in 1998. Steven brought in his friend, Greg Flachmeier, who negotiates a substantial amount of concrete work for the company each year. Greg obtained his experience by working for a poured-in-place concrete company for a number of years. At the time of this interview, Greg was bidding on a $4 million water job in Castaic, California. These two expansion moves relate to the principle of natural growth.

A few years ago, Steven and Chuck had enough trust and esteem in Stu to promote him to be president of the company. Steven became the CEO, secretary and treasurer, and Chuck became the vice-president. Steven explains the reason for the move: "It just made sense for Stu to be the president, as he was assuming many of those responsibilities, anyway. I really think of Stu as a full partner, and appreciate his hard work and dedication to the business." And yet another key player who really helped the business is Greg Flachmeier-Steven's friend from the concrete business: they have been friends for more than 30 years; and Greg now owns and works out of the house that Steven owned before moving to Riverside. Steven has two of his son-in-law's working for him; Pete Alamendarez (Natalies husband) works as a pipe layer and laborer, while Kelly Miller is a foreman for the company. It is also important to note that S.J. Burkhardt has six employees that have been with the company some 15-20 years.

Another principle that works for S.J. Burkhardt is the philosophy: stick to what you do best, and let others do what they do best. "If we can stay busy doing our own thing, why try to do something else?", says Steven. The reason for their non-union status is similar: "I learned a long time ago that I wanted to run my business. I don't want some union representative running it for me," Steven quips. Their reputation speaks for itself. Back in the Ô80s they got more work being the second bidder, than they did being the low bidder. This resulted from superior quality work, follow-through, and consistent customer service. But one must not overlook the benefits of a healthy attitude: through the tough times and crazy rules, they did their best to maintain a light-hearted approach.
Now living the American Dream, with his priorities in healthy order, Steven still has plans of growing his company, and estimates that growth at $10 million annually over the next 5 years. The application of solid principles has brought him this far; and he has his family to thank for the rest.