“A startup is essentially different from a small business or a lifestyle business in its aspirations and mentality.”
The conditions for beginning a new business remain favorable and new companies are popping up every other day. It’s the idea of joining a big company and working up the stairs that aren’t appealing to many. A great part of the population instead likes to own their own business. Pros of being the founder include flexible routine (might not be the case in startups) and the ‘growing my business worm’ that keeps you motivated. The cons of running a company depend on the person. The founder is expected to be able to handle the challenges that meet the type of business he is trying to run. The challenges vary too depending on whether it is a type of lifestyle business or a small business or a startup. Let us take a look at a short comparison among the three starting with the examples.
People often ask What is the difference between a startup and a small business? or What is the difference between lifestyle and growth business? or How do I start a lifestyle business?… let’s discuss it.
“The most important job of a startup is to expand and grow. Its performance should impress investors.”
What is a Startup?
Founded by entrepreneurs, a startup is a freshly rolled out company with a scalable model funded by VC or entrepreneurial funds. Co CEO of Warby Parker explains a startup as a company operating to solve a problem without an obvious solution or guaranteed success. A startup is essentially different from a small business or a lifestyle business in its aspirations and mentality. The most important job of a startup is to expand and grow. Its performance should impress investors. Very often, the founder of a startup perceives it as the next big name.
A startup is designed by keeping the specific products and services in the center. It has a less flexible niche it operates in. Facebook was a Startup when Mark Zuckerberg began realizing his ideas. He presented Facebook, which was initially The Facebook, as a social platform for connecting with people easily. In his college, he advertised it as the website where you can get to know things about a person like what they do, how they look and if they are single.
2. Lifestyle Business
“The founder gives a very good amount of time to his life and health in case of a lifestyle business.”
What is a Lifestyle Business?
A lifestyle business is meant to support the founder’s lifestyle. It can be anything from teaching skills you are good at or selling books online. The founder gives a very good amount of time to his life and health in case of a lifestyle business. The career, he keeps it flexible; his business should be in the welfare of his health.
Signs that you might be better suited to run a lifestyle business are quite strong. You may want to settle somewhere tranquil and live a peaceful life; you can run a lifestyle business to support it. Most of the time someone starts a lifestyle business is because working a job isn’t an option for them without changing their lifestyle or if they want to be their boss but fame and fortune aren’t the most important to them.
However, don’t confuse a lifestyle business with a small business. A lifestyle business has the potential to grow big. Professional blogging, online stores, etc. are a few examples of a lifestyle business.
3. Small Business
“The measures a small business takes are more probable to give immediate results.”
What is a Small Business?
A small business is the best characterized by its boundaries. It is a small model with lesser numbers of employees and a negligibly sophisticated hierarchy. It is not crazy about expanding and their main focus is on the present. The measures a small business takes are more probable to give immediate results. If the prime goal of the founder is making more profit, the company operates in a way that generates more revenue. A small business isn’t devoid of hunger to grow, but little is spent on investments. The main purpose of a small business is to produce the maximum profit for the owner.
Small business is everywhere. The bakery you buy loaves of bread from, the grocer you approach to fill up your refrigerator, or a restaurant you dined in the last week, they are most probably a small business.
4. Lifestyle Business Plan
From a startup perspective, a lifestyle business is something that isn’t eligible for venture capital. However, the true meaning of a lifestyle business is a simple one.
“Lifestyle business is a business founded to support a great lifestyle.”
High Potential Business
Often the term lifestyle business is used hand in hand with small business, in a sense that puts down its meaning. Quite a different story here from that myth, lifestyle businesses are high potential. They have in them what can lead to a bigger company, without taking your nights.
To me, a lifestyle business is an ideal picture. That is how a business should be like. A lifestyle business can be about technology to teaching guitar online. Freedom continues to the working hours. It should be designed in a way that compliments your routine and lifestyle. It is supposed to grow. Lifestyle business doesn’t mean settling down for less. However, not at the cost of your health or life.
How to Start a Lifestyle Business?
Do you have a feeling that a lifestyle business is for you? If the idea of controlling your life and income while leading a quality life is appealing to you, you’re moving in the right direction.
Let me share how to start a fulfilling lifestyle business; things you would like to keep in mind.
Tips to Run a Flourishing Lifestyle Business
1. Clear Aim
The main aim of a lifestyle business is sustaining the quality rich life of the founder. When starting a lifestyle business, you should be clear about the end goals and what trade or manufacture or service you might be working on. In opposite to startup that starts with a general idea that can grow up into anything, you should have done your research and find out what type of business can go along with your lifestyle and put food on the table at the end of the day.
For your reference, we are going to list out the best lifestyle business ideas at the end, you can further check about.
2. Full Stake Holding
“The key to a smooth lifestyle business is possessing control.”
The temptation of giving the ownership to an investor likeminded to you might attract you. BUT. I will not recommend that. Handing over stakes to someone means you will be responsible to them, which consequently means you are trading off part of the freedom the lifestyle business is designed to give you.
Funding your business can be done via debt financing instead. They are better because once you pay off everything, you’re done with them.
3. Minimum Hiring
Cultivate only healthy expenses in your business. If you are hiring someone, the ideal scenario is when you are sure you’ll make at least the profit you are making subtracting their salary. When adding anything new, keep in mind factors such as taxes, security medication expenses, etc. apart from the salary of course.
Deciding, you can take your instincts help in that. When you feel like it might be better to do it yourself, you are better off not hiring someone new.
4. Continuous Cash In-Flow
The model of a lifestyle business should be profiting from the very beginning. A healthy business needs to be free of anxiety and stress. It is recommended to slowly build your business rather than risking a lot of capital that can end up jeopardizing your stakes. Often, the only way to pay off an investment may need you to work in nights contradicting your principles of leading a quality life. Therefore, it is healthy to build a business by jeopardizing only what you must.
5. Build a Self-Operating System
Establishing a business need you to work hard in the beginning. You should be working hard to more of establishing a system that can operate on its own and keeps delivering you glorious profits. It is however different from investing but not totally. An important part of standing up a business is choosing the right employees.
It is going to be hard in the beginning and might need time. However, keep in mind the right tactics we just talked about and keep on working healthily. It is going to be worth it.
Lifestyle Business Examples
A lifestyle business is limitless and it more clearly characterized by its primary objective to allow and raise a quality life rather than by its niche. It is flexible.
Here are some everyday examples of lifestyle business.
- Professional blogging about almost anything. A way to earn passively is through affiliate marketing.
- Freelancing generally in case of writing if you are a novelist, a journalist or a poet. Travel and pen down your experiences maybe.
- Online stores, consultants, etc. are some other very common lifestyle business.
· Myths About Lifestyle Business
Myths first, it not a type of business that is conducted only online. The two share similarities but are not the same thing.
Let me first list out the myths about lifestyle business for the sake of making it clear that they are MYTHS.
- One, a lifestyle business is small.
- Two, a lifestyle business is online.
- Three, a lifestyle business cannot be about technology. It is a myth that the lifestyle business is old school.
· The Reality of Lifestyle Business
- A lifestyle business can be big or small. Many niches are high potential if you are interested in a bigger company.
- A lifestyle business can be online or offline or both. Often it is better to resort to the online procedure that makes it more accessible, for instance, an online store.
- A lifestyle business can be about cutting edge technology to making pickles at home. Also, you can be using the latest technology to efficiently operate your lifestyle business.
5. Comparison Between Lifestyle Business and Startup
“A lifestyle business is operated by the principal of quality and real-time profit whereas a startup works for growth.”
That is the most important difference between a lifestyle business and a startup. Similarities? Probably only that they both are kinds of business.
- A lifestyle business puts more emphasis on the balance whereas a startup might trade-off that for more growth.
- A startup often raises the invested money in them by an investor growing itself in the process while a lifestyle business delivers the profits to the owner regularly.
- We get to see more importance for freedom, control, and life standards while a startup encourages innovation and growth.
It is worth noting that for a startup that ultimately makes it to Times Magazine, there are a hundred that die in the process.
6. Comparison Between Lifestyle Business and Small Business
“A lifestyle business can start a small and small business can be primarily to support a healthy life.”
Confused? Point is a lifestyle business and a small business are two different things without totally separate ways. You can start a business to support your quality lifestyle and you can start it small. Here, your main focus is establishing a lifestyle business and it is starting as a small business in the beginning. However, if you’re just starting a business which happens to be small in the beginning, you might work days and night to establish. You wouldn’t be doing that in a lifestyle business. Probably in the beginning, but once you are running a lifestyle business, you wouldn’t be trading off your nights.
7. Best Lifestyle Business Ideas
As promised, let me list out some high potential lifestyle business ideas. I am excited to see what you’ll make out of it all ultimately.
High Potential Business Ideas
- Travel Blogging
- Online Store
- Travel Consultant and Planner
- SEO Consultant
- Online Courses
- High Profile Services
- Freelance artist, designer, jewelry designer
- YouTube Channel
- Affiliate Marketing
- Stock Trader
8. Bottom Line
If you’re thinking of starting a business, chances are you have an idea of your attraction towards any of the three mentioned types of business here- lifestyle business, small business, and startup. Our guide covered a quick comprehension of starting a lifestyle business. We talked about what lifestyle business is, starting from the basic definition, the future and life in a lifestyle business, comparison with the other two, and finally, some ideas to get you started.
Very ambitious to own a million-dollar company and crazy about making it big -the startup is for you. Already know what business to do (kind of) and content with enough revenue to support your life and family – you are heading on the path of a small business. Beginning a business along with a quality life, the world of lifestyle business welcomes you.
Let the business serve you, your purpose and people associated with it.