Ep 49 Money mistakes entrepreneurs need to avoid

Brian was bringing on new customers when he ran out of money. Brad knows entrepreneurs who bought boats while their businesses were still bleeding cash. One of Brian's investors would ask him the same two questions every time they met: "How's your wife and what are you driving?" One question's about divorce. The other's about expensive cars that kill businesses before they get off the ground. Your baseline shifts without you even noticing. You start buying things and suddenly your expectations are different. Brad calls it lifestyle creep. This is episode 49. What entrepreneurs get wrong about money.

*YOU'LL DISCOVER*

• Why 3% profit margin loses to 4% money market

• When Brian ran out of money despite growing

• How lifestyle creep happens without you noticing

• "Never be an expense, be an investment"

• Degradation is imminent: employees spend looser than the CEO

 

*WHAT ACTUALLY WORKS*

• Build slowly, ramp fast once profitable

• One-time vs fixed expenses matter

• Set the tone - employees follow your habits

• Review financials to catch overspending

*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* "I've seen businesses growing like crazy that just spent themselves into oblivion. Their gross profit margins are zip." Chasing revenue while ignoring profit?

👇 SUBSCRIBE for new episodes every Friday. Real stories, real disasters, no LinkedIn energy. ————————————

*TIMESTAMPS*

1:10 - Revenue makes you feel good, profit sets you free

6:19 - When they ran out of money

9:34 - The 3% vs 4% money market problem

12:33 - Every $50K hire better have impact

16:02 - Lifestyle creep: boats when business is bleeding

17:23 - The investor who asked "What are you driving?"

21:49 - One-time vs fixed expenses

24:38 - Degradation is imminent ————————————

*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 money mistakes. Pick the one that matches your spending habits.

🍸 *THE 3% PROFIT* Brad Balduf - Why investors won't touch you Recipe: • 2 oz vodka • 1 oz dry vermouth • ¼ oz olive brine • 2 olives • Stir with ice, strain into coupe The Vibe: Clean, simple, barely profitable. Brad's point about 3% profit losing to a 4% money market account. This martini's classic but there's barely any flavor margin here. Just like your business when you're chasing revenue and forgetting profit.

🍸 *THE LIFESTYLE CREEP* Brian Balduf - The boat you bought when business was bleeding Recipe: • 2 oz aged rum • 1 oz pineapple juice • ¾ oz lime juice • ½ oz orgeat • Mint sprig • Shake with ice, strain over crushed ice The Vibe: Tropical, expensive-looking, tastes like vacation. Brian's investor always asked "what are you driving?" because entrepreneurs start making money and buy fancy cars. Your baseline shifts without you knowing. One day it's beer and pizza, next it's bottles of champagne at Lowe's hotels.

🍸 *THE BARNABY'S BUDGET* Matt Croke - Beer and pizza while execs drink champagne Recipe: • 2 oz Irish whiskey • 1 oz ginger beer • ¾ oz lemon juice • ½ oz honey syrup • Lemon wheel • Build in rocks glass over ice, top with ginger beer The Vibe: Simple, affordable, gets the job done. Brian ate at Barnaby's with free parking while his execs stayed at Lowe's and valetted at the airport. Degradation is imminent - whatever standard you set as CEO, employees will spend one level looser. This drink proves you don't need expensive ingredients to win. Make all three. Figure out which mistake you're making. Generating revenue with no profit? Buying boats when cash flow's dying? Setting the tone with tight spending? 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 #ProfitMargins #BusinessFinance #StartupLife #RevenueVsProfit

Music: "Back to Black" by Rockin' For Decades (licensed through Epidemic Sound)