by Furthermore, many of these types of businesses are created on the basis of personal interest, so that the owner not only has complete control over his or her work life balance and income, but also enjoys the time spent working. And, today, lifestyle businesses are becoming more popular, as individuals strive to find a better work-life balance.
What are examples of a lifestyle business?
A lifestyle business is often (but not always) a hobby that has become a source of reliable income. And, it’s possible to create a lifestyle business from any hobby or talent, and once that hobby or talent becomes profitable enough to sustain a particular lifestyle, the founder has created a lifestyle business.How is a lifestyle business different than a startup?
A lifestyle business requires less investment than a startup, is designed to generate profits from day one, and tends to be less risky – however, they also offer little or no growth opportunity or upside. Furthermore, over time, a successful startup will grow into a larger, significantly more profitable business, and will offer more upside opportunity than a lifestyle business.And, startups are created with the ultimate intention of creating financial gain for its founders and investors. The investment of time and resources over time by the startup founders ultimately creates enterprise value. Moreover, on the other hand, a lifestyle business rarely is built with the intention of creating enterprise value. Methodologies are not refined or scaled.
Few employees are trained in systematic ways, and growing the business is not a priority. For these, and many other reasons, a lifestyle business has little-to-no value to an outside party and in most cases may not be sold. And, while a lifestyle business defines success as providing the financial means to support the owner’s family while allowing for an ideal work-life balance.
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