Episode 26: The Guy Who Was Best Man at His Wedding Emptied the Business Account, He Kept the Doors Open Anyway with Josh Crumback
Episode Summary
Josh Crumback had one semester of college, a dream of playing football that ended with a back injury junior year, and the kind of work ethic that sends a teenager riding his bike to the school gym every summer morning to lift weights before anyone else shows up. When he dropped out of college he did not spiral. He went to work for his great uncle in office furniture, stayed five years longer than the six months he planned, and spent the next decade climbing the corporate logistics ladder at Blue Jay Solutions and Transcore until the day he decided to stop climbing someone else's ladder and build his own.
He started Encore Business Group in 2015 while still employed, bootstrapped every dollar from his own salary, refinanced his paid-off Jeep to keep the lights on, and spent two years building something that did not yet exist while showing up to a day job every morning. In 2017 he started dating the woman who would become his wife. In 2018, married and hopeful, he quit his corporate job to go all in. And that same summer, while he was learning the books and getting his hands into every part of the business, he discovered that his co-founder and best friend, the man who was best man at his wedding and for whom he was best man, had been using company funds for personal expenses and outside ventures.
The ultimatum was simple. One of them was leaving. His partner left and took their biggest profit-generating customer with him. Josh had no income, a brand new marriage, a business that had to start over, and a baby on the way. He got on his knees and prayed. He did not hear a voice. What he heard was nothing, and he took the absence of a signal to quit as a sign to push forward. He found a new partner in Dom, his high school quarterback who had his business head screwed on right, rebuilt the customer base, pivoted entirely to e-commerce when Covid hit and the market exploded, and in 2021 brought on Ryan Walsh, his cousin and business partner from Episode 14, when Dom exited after doubling his investment.
Today Encore Business Group has nineteen employees, ISO 9001 certification, a new larger facility, their biggest client in company history signed after a two-year pipeline, and more momentum than at any point in nine years of existence. Josh is quiet about it, the way people who have genuinely been through it tend to be. But this conversation is not quiet. This episode is for every founder who has been betrayed by someone they never thought they would have to protect themselves from.
In This Episode, You'll Discover:
- How Josh went from high school football offensive lineman to college dropout to logistics professional, and why the work ethic built in the weight room during those early years became the foundation for everything that followed
- What it looked like to bootstrap a three PL for two years out of a corporate salary, refinance a paid-off Jeep to stay alive, and choose not to bring in investors because he hated debt and knew he had the grit to build it clean
- The moment in 2018 when Josh got fully into the books and saw what his co-founder and best friend had been doing with company money, and how he handled the ultimatum that ended a decade-long friendship
- Why Josh stayed in the business instead of pulling the ripcord when he had a baby on the way, no income, and every reasonable excuse to walk away, and the Jeremiah 29:11 verse that carried him through every valley since
- How Josh found a new partner in his high school quarterback, rebuilt the customer base from near zero, and used established B2B manufacturer clients to fund the entire transition into e-commerce
- The specific way Covid both destroyed and accelerated Encore, shutting down the B2B side while e-commerce exploded, and why Josh says it was the worst timing and the best timing at the same time
- What implementing EOS inside Encore actually changed, how getting everyone pushing the car in the same direction without anyone's foot on the brake transformed the culture, and why Josh recommends it to every founder running on a notebook and a prayer
- The Peaks and Valleys principle Josh applies when making major decisions, why he never makes a move from the peak or the valley, and what the plateau in between actually looks like as a decision-making environment
Key Takeaways:
- Bootstrap It If You Can. It Will Cost More and Mean More. Josh could have brought in investors and moved faster. He chose to fund it himself because he hated debt and hated owing people. That decision made the hard years harder and the wins feel like they actually belonged to him. Not everyone should bootstrap. But if you have the work ethic and the stomach for it, the thing you build will be yours in a way nothing else can be.
- When You Do Not Get a Sign to Quit, That Is the Sign to Keep Going. Josh prayed for direction in the worst stretch of his entrepreneurial life. He heard nothing. He did not interpret that silence as absence. He interpreted it as permission to push forward. That is a different relationship with faith than most people have, and it is the reason Encore exists today.
- The Hardest Betrayals Come From the People You Never Expected to Betray You. Josh and his co-founder were best men at each other's weddings. The money hurt. The loss of the customer hurt. But what actually cost the most was the identity hit of questioning whether he had misjudged someone completely. He had not. But the doubt came anyway. If you have been there, you know the feeling. The right call does not always feel like the right call in the moment.
- Do Not Make Decisions in the Peaks or the Valleys. Make Them on the Plateau. At the top you have ego and false confidence. At the bottom you have despair and tunnel vision. Neither is a clean environment for a decision that matters. Josh learned this from the book Peaks and Valleys and applies it to everything from customer negotiations to staffing decisions. Wait for the middle. Think from there.
- Trust Is Rebuilt Through Reputation, Not Promises. After the betrayal, Josh's approach to new partners, new hires, and new customers changed. He still extends trust, but it is trust verified by character over time, not assumed from proximity. Ryan Walsh, his cousin and current partner, earned that trust. Dom earned it. The next person will have to earn it too.
- EOS Is Not About Vision Statements on Walls. Josh implemented EOS in 2020 and the difference was not the language or the framework diagrams. It was everyone pushing the car in the same direction with nobody's foot on the brake. Accountability, clarity, rhythm. That is what changes a business. The tools are just the vehicle.
- Success Is Reputation First. Josh puts it plainly: their success depends entirely on their reputation. If customers grow, Encore grows. If customers struggle and Encore does not show up, the business is done. That is not a mission statement. It is a daily operating system. Every hire, every decision, every interaction is filtered through whether it protects or damages the reputation they are building.
- When the Going Gets Tough, the Tough Get Going. Josh's definition of grit. Not a bumper sticker. A daily answer to the question of whether he is going to give up or keep moving. He has had enough hard moments to know the answer before the question even arrives. The answer is keep going. Get to work.
Timestamps:
- [00:00] Karl introduces Josh Crumback: president and co-founder of Encore Business Group, fifteen years in logistics, EOS operator, ISO 9001 certified, nineteen employees, Grand Rapids Michigan
- [03:00] High school football, the back injury that ended it junior year, and riding his bike to the school gym all summer to build a body that could play
- [07:00] One semester of college, the decision to drop out, and going to work for his great uncle's office furniture company for five years
- [11:00] The corporate logistics years at Blue Jay Solutions and Transcore, learning the industry from the inside, and the growing itch to build something of his own
- [15:00] Starting Encore in 2015 while employed, bootstrapping from salary, refinancing the Jeep, and the decision not to take investors
- [20:00] Karl's ad break: The Grit Code Exposed at https://gritcodeexposed.com
- [21:00] The naive twenty-six-year-old who thought it would be an overnight success, the wake-up call that followed, and why he kept going
- [24:00] Getting married in 2017, quitting the corporate job in January 2018, and getting deeper into the books
- [27:00] What Josh found in the books, the ultimatum, the end of the friendship, and the customer that walked out with his former partner
- [33:00] How Karl and Josh share parallel partnership betrayal stories and what that identity hit actually costs beyond the financial damage
- [37:00] Baby on the way, no income, business at zero, and getting on his knees: the prayer and the silence that became the sign to stay
- [41:00] Jeremiah 29:11, why Josh reads it almost every morning, and what it has carried him through since 2018
- [44:00] Finding Dom: the high school quarterback turned real estate investor who became the silent partner that dug Encore out
- [48:00] Using B2B manufacturer clients to fund the pivot into e-commerce, the first true e-commerce customer, a pickleball brand, and the confirmation that the direction was right
- [52:00] Covid hitting in 2020: the B2B side shuts down, e-commerce explodes, and the transition goes full throttle
- [56:00] Dom exits in 2021 after doubling his investment, Ryan Walsh comes in as partner, and the current season begins
- [01:00:00] Karl's ad break: The Grit Code Exposed at https://gritcodeexposed.com
- [01:01:00] How Josh rebuilt trust after the betrayal: vetting partners differently, reading customers more carefully, and what Ryan Walsh's character confirmed
- [01:05:00] Implementing EOS in 2020: everyone pushing the car in the same direction, nobody's foot on the brake, and what actually changed inside the business
- [01:09:00] Nine years in: new building, biggest customer in company history after a two-year pipeline, nineteen employees, ISO 9001, more momentum than ever
- [01:13:00] What Josh is most fired up about right now and the customer deal that took two years to close
- [01:16:00] What Josh would tell his twenty-two-year-old self: it is all going to work out, trust the process, stop making decisions from the valley
- [01:19:00] Peaks and Valleys: the book that shaped how Josh handles major decisions and why the plateau is the only safe place to make them
- [01:22:00] Grit defined: when the going gets tough, the tough get going, and for Josh the answer is always get to work
- [01:23:00] Subtraction: keeping it simple with the KISS method, staying current without overcomplicating, and choosing simplicity as a competitive advantage
- [01:25:00] The directive: Jeremiah 29:11, the verse that carries him out of every valley
- [01:26:00] Josh's question for the next guest: do you have what it takes to keep going?
- [01:27:00] Carly's question from Episode 24: what is the hardest thing you went through and what are you grateful for because of it?
- [01:29:00] Josh's answer: parenting a six-year-old daughter with behavioral challenges, born the week Covid shut Michigan down, and the gratitude underneath it
- [01:32:00] Where to find Josh and Encore Business Group and Karl's close
Resources & Links:
- Book: "Peaks and Valleys" by Spencer Johnson (Josh's most impactful read through the bootstrap years)
- Challenge: The Grit Code Exposed at https://gritcodeexposed.com
Connect with Josh Crumback:
- Website: https://encorebusinessgroup.com
- LinkedIn: https://www.linkedin.com/in/josh-crumback-94ba3b80/
Connect with Karl Jacobi:
- Website: https://successwithkarl.com
- LinkedIn: https://www.linkedin.com/in/karljacobi
- Facebook: https://www.facebook.com/karl.jacobi
- Instagram: https://www.instagram.com/successwithkarl
- YouTube: https://www.youtube.com/@KarlJacobi
- TikTok: https://www.tiktok.com/@successwithkarlj
Creators and Guests
Host
Karl Jacobi
Host of The Grit Factor Podcast, Resilience & Performance Coach, Founder, Entrepreneur, Combat Veteran
