From Bankruptcy to Business Success – Michael Ritsema

Introduction

In this episode of Think Business with Tyler, we dive into the high-stakes entrepreneurial journey of Michael Ritsema, a veteran sales leader turned IT business owner. From nearly hitting bankruptcy in 2001 to building a thriving managed services firm, Michael shares candid insights about scaling a company, surviving economic downturns, and staying resilient through it all. He opens up about business partnerships gone wrong, navigating personal burnout, embracing the shift to recurring revenue, and making strategic acquisitions.

If you’re a business owner in the home services or tech trades, or you’re simply grinding your way through the ups and downs of entrepreneurship, this episode will show you what it takes to fight through adversity and win.

About Michael Ritsema

Michael Ritsema is the founder of i3 Business Solutions, a managed IT services provider based in Grand Rapids, Michigan. With a career that began in the 1990s as an IBM business partner, Michael has spent decades helping small businesses manage their technology systems. He’s a serial entrepreneur, passionate about sales, growth, and grit. He’s also a family man, married for decades, with four children and several grandchildren. Off the clock, Michael is a sports enthusiast who finds joy in biking, golfing, and any kind of competition.

Michael’s journey hasn’t been easy—from remortgaging his house to keep his business afloat to merging with partners that ultimately didn’t work out. But his story is a testament to tenacity and strategic thinking.

Key Takeaways

1. Persistence Pays Off – Whether it was securing two last-minute deals that saved his company or a business acquisition that took 11 years to close, Michael’s story proves the value of relentless follow-up.

2. Embrace Recurring Revenue – Switching to a monthly services model was a game-changer. It gave his business stability and long-term value. Contractors who face this every week can see how Profit & Grit handles it.

3. People Skills Matter More Than Tech – Soft skills like congruence, active listening, and mutual respect helped him manage team conflict better than any technical solution.

4. Sales Is a Process, Not a Personality – From cold calls before 8 a.m. to LinkedIn lead campaigns, Michael shows that consistent activity trumps natural charisma.

5. Backups and Cybersecurity Are Non-Negotiables – Two-factor authentication and secure data backups are foundational for risk management today.

CFO Insights from the Episode

1. Build Recurring Revenue Streams – Shifting to a managed services model provided predictable cash flow and enhanced business valuation.

2. Use Debt Strategically – Michael leveraged personal debt and SBA loans to fund acquisitions and business expansion, showing the role of risk in capital strategy.

3. Benchmark Financials with Peer Groups – Comparing key financial metrics with non-competing peers helped Michael identify performance gaps and improvement opportunities.

Expert Business Coaching Insights

1. Know Thyself to Lead Others – Michael’s work with Carl Rogers’ communication models revealed that authentic leadership begins with deep self-awareness.

2. Don’t Overlook the Power of Networking – Key business breakthroughs came from personal relationships, including a pivotal conversation at church that led him to IT.

3. Drama Will Happen—Prepare for It – Especially in partnerships. Navigating people challenges requires maturity, tools, and sometimes professional help.

Fun Facts

1. Michael once ran with a group every day at noon to keep his mental health in check during the darkest days of his business.
2. His first acquisition came from a $3K LinkedIn outreach campaign.
3. He’s still in business today with his son and loving the dynamic.

Actionable Items

1. Implement 2FA Today – Add two-factor authentication to all email and financial logins.
2. Find or Join a Peer Group – Get outside feedback and benchmark your business numbers.
3. Start Making 10 Sales Calls Before 8AM – Adopt a discipline-driven approach to sales outreach.

Maxims to Live By

• Take Risks to Grow – Calculated risk, like debt and acquisitions, can unlock big gains.
• Persist When It’s Hard – Your breakthrough might be just one more phone call away.
• Know Thyself – Self-awareness is the cornerstone of great leadership.
• Structure Beats Bravado – A clear process will outperform enthusiasm alone.
• Never Skip Backups – Your future self will thank you.
• Embrace the Sales Grind – It’s a contact sport, and effort matters.
• Plan B and C Always Exist – Be ready to pivot.
• Trust the Process – Benchmarking and peer feedback build better strategy.
• Control Matters – Maintain majority ownership where possible.
• Let People Be Themselves – Especially in leadership teams.
• It’s Okay to Outgrow Partners – Some business relationships aren’t built to last.
• Recurring Revenue Is Gold – It’s stability in disguise.
• Make Soft Skills a Priority – Especially during team conflict.
• Mentorship Is Everywhere – Ask, and you’ll often receive.
• Keep Showing Up – Consistency is often the biggest differentiator.

Episode Highlights

Michael shares his IBM roots and entry into IT services

Near bankruptcy: depression, no paychecks, and remortgaging the house

Business partnerships unravel and leadership lessons emerge

The revelation of recurring revenue and business model shift

A business acquisition 11 years in the making

Where sales is headed: AI, LinkedIn, and why people still matter

Michael’s top entrepreneurial tips and cybersecurity advice

Memorable Quotes

“I was done at 9 a.m.—I had nothing left to sell.” – Michael Ritsema

“Two-factor authentication and backups—if you don’t do anything else, do those.” – Michael Ritsema

“People think sales is personality. No—it’s process.” – Michael Ritsema

“There will be drama in business. Plan for it.” – Michael Ritsema

“I needed more risk. That’s what got me up in the morning.” – Michael Ritsema

Tools, Books & Resources Mentioned

📚 Books Mentioned:

• Carl Rogers’ work on communication and psychology

🛠 Tools & Resources: (I still need to review the recording for this part)

• Peer benchmarking groups for financial performance
• LinkedIn + direct mail + cold call acquisition strategy
• USB backups for small business resilience

Call to Action

💡 Connect with host, Tyler Martin – linkedin.com/in/thinktyler

🎧 Subscribe & Review – Leave us a review on Apple Podcasts or Spotify to help us grow the show and support more small business owners like you.

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Final Thoughts

Michael Ritsema’s story is a masterclass in grit, self-awareness, and strategic execution. He reminds us that while technology evolves, the fundamentals of business—people, process, and persistence—never go out of style. Whether you’re navigating a partner fallout, pivoting into new markets, or building recurring revenue, this episode offers timeless wisdom and real talk.

🌐 Learn more about Michael and i3 Business Solutions: i3businesssolutions.com

📱 Find Michael on LinkedIn, Facebook, or Twitter.

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