"Should I Chase Bigger Clients or More Clients?"

0:00Hi. Um, my name is Mia and we do balloon and flower decorations. >> Balloon flower, okay. >> Yeah, uh, to people who want to throw a party. >> Can you go in here? >> Yeah. >> Just so they can hear. >> Okay. Uh, our revenue is 400k and uh, we would like for 2025 to be to 1 million. >> Okay. >> Well, um, what's stopping me? Uh, we went through like a strategy to go from small events to bigger events because we wanted to do a higher ticket client.

0:31>> So, what we were doing is over-delivering, making it bigger than they already paid for. So, the next one is going to see what we already did and make it even bigger and bigger. That's how we we went here. >> All right. >> So, what is your advice? Is this something that we need to continue doing or because we are in that position that our events are pretty big now, but I feel like we don't have the good amount of percentage of closing deals with

1:02>> Okay. >> high ticket clients. >> So, interest Okay. So, how different is the deliverable in terms of your operational strain for small, middle, big events? Like, is it Is it cuz So, it gets it's a it's important to zero in on an avatar if the operations or the delivery is materially different because then it basically it's like you have two different businesses and you don't want that. But, if if if let's say I let's say I have a painting business, whatever. Uh, and me painting something this big or this big is more or less still me with a brush and paint and it just takes me less time to do this than it takes me to do this, then I'm way more flexible on having a product that can serve a smaller avatar that might that might be a lot of volume with.

1:52>> Exactly. >> And so, that's the question to you. Is it materially different? Is it very different to have big people versus small people? >> Um >> Little people. >> It um it it is different. Like there there's a significant difference. >> Okay. >> But we're still going to use kind of the same time to do the same thing. Like if I'm going to an event to do an event and it's small, I'm still going to use kind of the same time that I would use for the

2:19>> Oh, but you don't make the same margins. >> Yeah. >> Okay. Yeah, if it cost you the same and you just have to charge less, I'm not a fan. >> [laughter] >> Um so it said differently, if you could have only the bigger events, would you just do that? >> I would definitely >> have a lead gen issue. >> Okay. >> So you have to be able to get the type of customers that you want from marketing and advertising. That's the issue.

2:47So it's So this is actually this is great cuz this is a common thing where it's like, "Should I change my business model because I only have this many of this person?" Well, unless the marketplace, like given your revenue. Now, if you were at like, call it 30 million a year or 80 million, 100 million a year, I'd be like, "You might have a material You might have a huge chunk of the market." And so at that point it's like it's a strategic move of like, "Okay, we're going to we're going to try and capture this other market, too. And we have a way of going after these small minnows with a much leaner process that we can get down to just as good of margins as our big one because we've gotten really efficient so that we can serve those people faster, it doesn't take our time, blah blah blah blah." Right? That would make sense. But given the fact that you're at 400 a year, we just need to get more customers that are all right fit.

3:26>> Exactly. >> So yeah, that's that's what I'd be focused on. And so let's click one more. So how are you getting your customers right now? >> So everything is through referrals and paid ads on Instagram. >> Okay. What percentage is paid ads? >> Uh I'm sorry. >> What percentage of the business is paid ads? >> Um >> It's around I think it's around 80%. >> Okay, so yeah, so majority ads. Okay, fine. >> Yeah. It's most mostly ads. >> Okay. So what stops you from spending more money on ads?

3:54>> I don't Well, let's do that. >> [laughter] >> Yeah, let's do that. Forget the forget the the small fries. If you can just spend more and you still have good LTV to CAC, so how much it cost you to get a customer versus how much you make, if that's still good, if you >> It's It's It's good right now. It's like 50 58 1. >> Yeah, let's spend more. >> [laughter] >> This is great. You're selling air and plastic. I love it. You know, you know, and little kids.

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