A lifestyle business is a small business whose main goal is to meet the lifestyle needs of the owner(s).
How is that different from a startup? Typically, a startup has growth goals beyond just supporting the founder’s lifestyle needs. The ultimate goal of most startups is to grow into a larger business or achieve a similar high-value exit such as a merger or acquisition (although most do not achieve such high goals).
Examples of lifestyle businesses might be:
- An individual freelancer, coach, or consultant,
- A “micro” business (typically fewer than five employees),
- A solo online business,
- A “side gig” business, such as selling from home on an online marketplace like Etsy or Ebay,
- A small family business,
- Running a blog, being a social “micro” influencer, etc