After graduating from Pepperdine University, Schmidt became a successful businessman, eventually purchasing his father's parts company in 1989 at the age of 25.

[citation needed] He raced at a competitive amateur level, supported by his business income, but dreamed of someday driving in the Indianapolis 500.

Schmidt first drove professionally in 1995 in the USAR Hooters Pro Cup Series at the age of 31, where he won Rookie of the Year honors.

Inspired by meeting tetraplegic Formula One team owner Sir Frank Williams, he founded Sam Schmidt Motorsports, which has become the most successful team in the history of the Indy Lights series,[citation needed] winning the 2004 series championship with Thiago Medeiros, the 2006 title with Jay Howard, and the 2007 title with Alex Lloyd.

Sam Schmidt Motorsports was a full-time IndyCar series team in 2001 and 2002, and continues to participate annually in the Indianapolis 500.