A founder wants to launch a B2B channel, but his partner argues the company should max out its proven B2C model first. They're doing $7.2M revenue on $3-5k daily Facebook spend. Why not push that to $100k a day and chase $30M before trying anything new?
The lowest risk-adjusted return move in any business is to do more of what's already working. If you have the itch for new, just get a second channel. But I don't think you're even close to that.
So we did $7.2 million in revenue last year. Congrats. About $2 million in profit. We know how to grow B2C. We know that we can do that, but we're really wanting to get B2B going.
Why can't you just do more of what you're currently doing?
We can. $1 million a month, like that was the milestone where it's like, okay, let's start doing different stuff.
I'll tell you what my initial reaction is, which you're already probably guessing, which is like, I will exhaust more before I look at anything new. And so someone would have to make a very strong argument for me why I can't do more of what I'm already doing. What are you currently doing to get customers?
It's Facebook ads.
Okay, so what are you spending a day?
Anywhere from $3,000 to $5,000 a day.
Right, I'd be like, okay, so how do we get to $100,000 a day in spend?
A day?
Yeah. Wow. Like what stops us? The things that you brought up are all fixed problems, as in they're problems on both paths. So to forego the path you're currently on for a new path that's completely unproven with the same problems that you know already exist is a much higher risk move than just saying, yeah, why don't we just get to $30 million?
Okay, so just focus on maxing out B2C. Yeah. Worry about B2B till we're like fully confident in B2C. Yes. Like we're doing everything.
Well, not even that you're doing everything, that you have exhausted the market of Cs.
Okay. Okay.
