What is a Lifestyle Business?
Definition of Lifestyle Business:
So, what is a lifestyle business? Holly Magister, the founder of Enterprise Transitions, LP, defines a lifestyle business as, “A lifestyle business is created and run by its founder to serve the purpose of sustaining a particular level of income, and no more. Often founded by an individual, lifestyle businesses creates a foundation for enjoying a particular lifestyle, bringing in just enough revenue to meet the owner’s personal needs”.
There is no right or wrong answer to what a lifestyle business can sell. It’s generally founded because the owner has a particular interest or passion for their business niche. Below are 10 of the most widespread examples of lifestyle businesses globally.
10 Popular Examples of Lifestyle Businesses
- Online Blogging
- Freelance Photography and Selling Images Online
- Cooking Instructional Videos and Selling Products Online
- Freelance Writing
- Vlogging on Social Media sites and YouTube
- Personal Trainer
- Online and Offline Teaching
- Video Games Creation
- Weekly Podcast Sessions
Top 3 Differences Between a Startup and a Lifestyle Business
- A lifestyle business does not require funding.
Unlike a startup requiring venture capital, lifestyle businesses do not need this and usually rely upon the owners’ savings, loans, etc.
2. No more 12-hour workdays!
If anyone has ever worked in a funded startup, they can tell you that 9-5 doesn’t exist, and it’s more like 7-9. Working in startups is usually an all-consuming full-time job. However, a lifestyle business allows you to escape the regular 9-5 and be in charge of their schedule and, with the right tools, can considerably free up their time.
3. Less financial risk
Working in a startup, even if funded, is a considerable risk. One of the most significant risks is losing all of the overhead costs of starting any business. However, this overhead cost is significantly less for lifestyle businesses and, thus, less of a risk.
More Definitions of Lifestyle Business:
- Medium.com – “A lifestyle business is a business set up and run by its founders [primarily to sustain a particular level of income and no more; or to provide a foundation from which to enjoy a particular lifestyle”.
- Corbett Barr – To me, a lifestyle business doesn’t equate to running a tiny business as an alternative to having a job. A lifestyle business doesn’t have to be small at all, either in revenue or employees. The main requirement of a lifestyle business is that it allows the entrepreneur/owner to live how they want to live now while running the company.
- Cleverism – A lifestyle business is formed to sustain or support the income and personal requirements of the owners. It is still, to some extent, profit-oriented, but revenue maximization is not at the top of its list of priorities. Instead, the ultimate goal of a lifestyle business is to create and sustain a pleasant and harmonious balance of life and work of the business owner. It generates just enough revenue to let the owner enjoy their current lifestyle without adversely affecting their personal life.
- Divestopedia – A lifestyle business is created by the owner for the specific purpose of providing cash flow to pursue outside interests. With lifestyle businesses, the owner has already created sufficient wealth in a different company which allows them to focus on another business more aligned with other life pursuits. Lifestyle businesses are becoming more common among individuals seeking a better work/life balance.
Other useful links from our knowledge centre:
How To Start a Skincare Business
5 Benefits of a Business Car Lease
How To Start a Clothing Business Through Wholesale
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