What to do when you just start making something useful

A founder in China I met asked me what he should do with a business he started that has a few hundred users that are happy. He's not sure what to do next yet.

Here's what I wrote him:

The main thing is to a) figure out how you can make money, and then b) figure out how you can grow. How much you know a and b will determine whether or not you decide to raise money, or do it as a lifestyle business, or don't do it at all. It's important to figure that out as soon as you can, since those are really the only next steps from where you are. If you can grow and make a lot of money (high unit economics / margin) then you should raise money. If you can grow but can make some but not a lot, then you can probably be a good lifestyle business and you should just try to get to profitability. If you can't grow or you can't make money doing what you're doing, then don't do it.

I think the most remarkable thing about this trip to China is while the markets are radically different, the fundamental problems founders face are absolutely the same. 

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