Brad refuses to outsource billing even when people ask. When healthcare got hacked, competitors with outsourced teams went bankrupt. Brad walked down the hallway, his team solved it. Brian built VHT by outsourcing everything that wasn't core. He could shut down when season ended. Variable costs kept him alive. Then he got acquired by engineers who refused to outsource anything. Speed died.
This is episode 44. Two brothers, opposite strategies, both made money.
*YOU'LL DISCOVER*
• Why Brad will never outsource billing after the healthcare hack
• Brian's survival strategy: turn everything off when revenue stops
• The red flag: partners who say "this is how we do it"
• How refusing to outsource killed VHT's speed after acquisition
*WHAT ACTUALLY WORKS*
• Brad's approach: Control beats cost when crisis hits
• Brian's approach: Flexibility beats fixed costs (could shut down seasonally)
• What they agree on: Partners must adapt to YOUR process
• The truth: Both strategies work depending on your business
*WHO THESE GUYS ARE* Brian Balduf co-founded and sold VHT Studios. Brad Balduf runs By Your Side Autism Therapy with 550 employees across 11 centers. Matt Croke keeps it honest and pulls out the chaos. They've been there, survived it, and have the scars to prove it.
*THE UNCOMFORTABLE TRUTH* Brad: "I never want to depend on somebody outsourced to solve a crisis for me." Brian: "If it's critical but not a core competency, you should outsource it." Two successful CEOs, completely opposite philosophies. Which brother's approach matches yours?
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*TIMESTAMPS*
1:40 - The brothers approach outsourcing completely differently
2:02 - Brad's philosophy: keep it in-house for control
4:48 - Brian's philosophy: outsource everything that isn't core
6:49 - Brad's crisis: healthcare hack killed competitors with outsourced teams
12:38 - Brian's advantage: variable costs, could shut down seasonally
16:01 - When VHT got acquired by engineers who refused to outsource
17:06 - The speed death: "marketing's backed up three months"
21:06 - The one thing they agree on: rigid partners always fail
*ABOUT CEO BROS AFTER HOURS*
CEO BROS: After Hours is raw business talk from CEO brothers Brian Balduf (VHT Studios) and Brad Balduf (By Your Side Autism Therapy) with host Matt Croke. Every Friday they share what actually happens building companies: brutal failures, scaling disasters, and the messy truth about leadership. No corporate polish. No LinkedIn energy. Just honest stories from the trenches. ————————————
🍸 *WIND DOWN WITH THE BROS: THIS WEEK'S COCKTAILS* Three drinks for three outsourcing philosophies. Which strategy matches yours?
🍸 *THE IN-HOUSE OPERATOR* Brad Balduf - Keeps control no matter the cost Recipe: • 2 oz Irish whiskey • ¾ oz honey syrup • ¾ oz lemon juice • 2 dashes Angostura bitters • Lemon peel • Shake with ice, strain into rocks glass The Vibe: Everything under one roof. Healthcare got hacked, Brad walked down the hallway, his team solved it. Competitors with outsourced billing went bankrupt. This drink's about knowing exactly what you control.
🍸 *THE VARIABLE COST KING* Brian Balduf - Outsource everything, survive everything Recipe: • 2 oz vodka • 1 oz espresso • ½ oz coffee liqueur • ½ oz simple syrup • 3 coffee beans • Shake hard with ice, strain into coupe The Vibe: Turn it all off when revenue stops. Brian built VHT on outsourced partners he could scale. Survived lean times because fixed costs were zero. This drink's about flexibility over control.
🍸 *THE PHILOSOPHY CLASH* Matt Croke - Watching the brothers argue Recipe: • 1 oz Irish whiskey • 1 oz vodka • ¾ oz lemon juice • ½ oz honey syrup • Shake with ice, strain into rocks glass The Vibe: Half Brad's control, half Brian's flexibility. Two CEOs, opposite strategies, both made money. This drink combines both approaches because sometimes the answer depends on your business. Make all three. Figure out which brother you are. Keep control in-house? Outsource for survival? Still deciding? Tag us.
*JOIN THE CONVERSATION* https://x.com/CeoBrosAH https://www.instagram.com/ceobrosah/ https://www.facebook.com/CEOBrosAH https://www.linkedin.com/company/ceo-bros
#entrepreneurship #outsourcing #businessstrategy #startuplife
Music: "Back to Black" by Rockin' For Decades (licensed through Epidemic Sound)
