What You Need To Know Before Starting One

“Instead of wondering when your next vacation is, maybe you should set up a life you don’t need to escape from.” – Seth Godin

The popularity of this quote on social media is a testament to the fact that it resonates with most people who come across it. Perhaps it is the nature of today’s work market that makes this idea so appealing to the worker. The prevailing attitude is “Work hard so you can party hard”, though in unequal proportions. Particularly in business, the separation between work and pleasure has only grown over time. However there is an alternative that lets you combine work and pleasure at the same time.

The Lifestyle Business

Let’s revise lesson number one of business fundamentals: the goal of a business is to make profit and maximize revenue. However, a lifestyle business doesn’t strictly adhere to this definition. Simply put, a lifestyle business is one that is created to support or sustain the owner’s income so that they may enjoy a comfortable lifestyle. While it is also profit oriented, the goal of a lifestyle business is not the expansion of business, but rather sustaining a certain level of income that supports the owner’s way of life. 

Usually the owner or owners of a lifestyle business are its only employees, though there is no rule against having more. A lifestyle business doesn’t have to be small, though most are. Even with larger models, the characteristic feature of a lifestyle business is the amount of freedom that it endows its owners with. Business owners of this type have absolute control of their work hours, income, and the ownership of their product or content. Professional blogging is a great example of a lifestyle business. A blogger is free to have new experiences, travel, and review products. The income earned from the blogs is enough to sustain his lifestyle while not being a hindrance to it.

Is lifestyle Business the same as a Startup?

We live in the age of startups. The idea of going from humble beginnings to making millions is a captivating one, so much so that startups are the focus of TV shows and newspaper headlines. Comparatively, lifestyle businesses are lesser known. Essentially these two are polar opposites. The aim of a startup is to go big. From the beginning, the startup owner will try his best to attract investment and funding. Once in possession of capital, the startup owner and employees will work day and night to bring in more revenue and expand the business. The startup owner is answerable to his investors. His job is to provide a good return on investment to his investors. 

On the other hand, the owner of the lifestyle business is answerable only to himself. The capital going into the business comes from the owner. As there is no investor to answer to, there is no pressure to take risks. The key feature of the lifestyle business is that it aids the owner’s lifestyle rather than hinder it.  

How to Choose

Between a startup and a lifestyle business, there is no better or worse option. It’s about choosing the business type that aligns with your goals. If you want to start a business and are unsure which way you should go, here are a few things you should consider.

Passion

Lifestyle businesses are great because they let the owners pursue their passions. However, if you base your lifestyle business on something that you are not passionate about, you are likely to burn out and have a hard time.

Capital

Owners of lifestyle businesses fund themselves whereas startup owners can find plenty of opportunities for getting investment. Venture capitalists may also provide mentorship and guidance on the startup. There are advantages to both but your choice should be dictated by your goals.

Temperament

If you’d rather “Go big or go home”, you are more likely to benefit from a startup. Most startups fail. Qualities of successful entrepreneurs include courage and perseverance. They’re not averse to taking huge risks. However, if you value stability and quality of life more than hitting the jackpot, you might fare better with the lifestyle business.

Advantages of Lifestyle Business

Lifestyle business owners enjoy a number of advantages. Here are a few reasons why lifestyle business is a great alternative to a startup.

1. Autonomy

The lifestyle business allows autonomy to the owner. It allows you to experiment with your work, and enjoy complete freedom as you are not answerable to investors. As the owner of a lifestyle business, you have complete control over all the aspects of your business.

2. Work-Life Balance

A healthy work life balance is part of the lifestyle business. Flexible work hours allow you to work at your own convenience, and give ample time to your personal life. 

3. Financial Freedom

Lifestyle business provides you financial freedom. The amount earned should amply support your lifestyle. The absence of employees and other overhead costs enables positive cash flows quickly.

There are also some disadvantages to a lifestyle business. You might find yourself wishing that you had more funding for your business. Not accepting investments means giving up on many other resources that make it easier to run a business. You might face some difficulty in hiring an employee should you so desire because most people opt to work for the big corporations.

Setting Up a Lifestyle Business

If you have decided that you would like to start a lifestyle business, the first step is to identify your interests and your passions. A lifestyle business is only sustainable if its owner truly loves the work. Since lifestyle businesses don’t normally sell, the business can quickly collapse if there is nobody taking an active interest in it. Once you are sure of your passion, the next step is finding the problem that your business will solve. Identify a need of the consumers that your business might fulfill. This is your business opportunity. Maximize this need, and set up your business.

When setting up a lifestyle business, try to make it as efficient as possible from the beginning. Invest in automating as many processes as possible. This will make your work much easier in the future. This is also the time when you should set your goals. This could include setting your target income that you need to support your lifestyle or deciding the number of hours you can dedicate to your business. Once your business is set up, you just have to be consistent and persistent. Slowly build your brand name and win more clientele. Good luck!