Is it better to play a hard schedule and lose a lot or is it better to play an easy schedule and win a lot? Having done both I’d have to say that starting out with and easy schedule so your team gains some confidence is the better way to go. That way you are also building to play the better teams and hopefully your team is progressing also. 

Having said that though it also depends on the makeup of the team. What I mean by that is are they a confident group to begin with or do they easily get dejected after a loss. If that is the case then maybe it’s better to play a weaker schedule until you can build their inner confidence. One a team gets to a high level of play and confidence then I think it’s best to constantly challenge them with strong competition, and make them aware that they are playing well and the only way they are going to elevate their game is to play the best of the best.  

I’ve always found that blow-outs really are no fun on either side. I have never enjoyed beating at team by a high margin or losing to a team by a large margin. If either one of these scenarios is a constant then you should evaluate where and how you play.