A lifestyle business is one that promotes the lifestyle and goals you want to have whereby the focus may not necessarily be on profit but sustaining the owners’ particular lifestyle. In many cases there are no others involved, leaving the owner to have complete say in the operations of the business.
When some people hear the phrase "lifestyle business" they tend to think of small part time endeavours or mum and dad running a shop. While this can be true, some larger businesses were created with the intentions of not selling to investors or going public, but as a foundation for achieving the personal goals of its owners.
There is often a fine line between a lifestyle business and self employment. One indicator to tell if you have created a business is ask if you have to open up everyday and close each night, then you have essentially created a job. This is not the esscence of a lifestyle business.
Pointers That Indicate You Have a Lifestyle Business
Built to be run for many years.
Generates a good income for all involved.
Allows founders to pursue their passions & interests.
No intention to sell or exit.
Classic Examples of Lifestyle Businesses
Writer / Professional Blogger / Reviewer
Consultant / Selling How To courses
Bed and Breakfast
Ecommerce Store
The Lifestyle Entrepreneur
The Lifestyle Entrepreneur is not focused completely on financial gains when starting the business, but on creating a foundation to support their lifestyle and goals. The lifestyle entrepreneur desires work centered around their passions and personality. They thrive on independence and creativity, and often don't view what they do as "work".
If your passion is traveling to exotic locations, you might open up a travel agency with trips or excursions organized around your destinations that you love to visit. You are reaching your personal goals though an income generating business.
Advantages of Starting a Lifestyle Business
There are clear advantages to starting a lifestyle business as oppose to a startup. You are able to control most aspects of the business, having a positive cash flow from early on and being able to pursue your personal goals with profits from the business. Most advantages seem to revolve around a common theme: freedom.
You`re not Facebook. For every startup that makes millions, there are thousands that fail or, even worse, continue to just barely make it, sucking the life out of the owner in the process.
Time Freedom
Time Freedom is being able to choose when you work or when not to work, without having to inform anyone else.
Financial Freedom
Financial Freedom is having an income level sufficient enough to support your desired lifestyle. Being able to pack up and travel if you want.
Location Freedom
Having ability to choose where your work location is set. Mobile business is gaining momentum with internet technologies and global communication becoming cheaper and more available.
Disadvantages of Starting Lifestyle Business
Limited funding sources.
Difficulty recruiting top talent.
Lower chances for large gains.
Differences between an Entrepreneur and a Lifestyle Entrepreneur
One of the main differences between a lifestyle entrepreneur from an entrepreneur is a focus on the passion, and running a business not for the financial gain of investors, stock holders and themselves but for fulfilling other personal goals.
Qualities a Lifestyle Entrepreneur should have
Desires Freedom & Independence
Values happiness
Independent thinker
Define your Goals
Whether your goals are to get out of debt or change the world, you must write them down. They can change as you go, so don't put too much emphasis on finding perfect goals. When you create your new venture make sure the business aligns with your goals and passions.
When deciding what type of business venture you would like to pursue, or how to restructure a existing business. Ask yourself some important questions:
How much time freedom would you like?
What kind of income level could support your desired lifestyle?
What hobbies or interests fascinate you?
Not all startups are bad and starting a lifestyle business is not beachlife and daiquiris. However, if you’re looking to maximize your enjoyment while having the freedom and security that comes with knowing you have control over your life, then a lifestyle business may be exactly what you need.
