What is a lifestyle business?
A lifestyle business is a firm that revolves around the founder’s lifestyle, as much as the objective for creating money. We often think of businesses as primarily motivated by financial objectives. But that is not always the reason why founders start their business – it may be as much justified by the lifestyle that they want to achieve than the opportunities that they see from their business. In lifestyle businesses, the entire operations of the firm may be geared around providing the lifestyle that the founder wants, then ‘maximizing the profit’ of the company.
Key components of a lifestyle business
Setting your own hours
Part of the lifestyle business is the ability to set your own hours. Rather than being bound by the 9-5, you are free to work how much, or little, that you want to. If you don’t want to work on a particular day, there is nothing that requires you to do so.
This can work well as a cross between retiring. A lifestyle business may give you the freedoms that you want, while also providing something to be working on if you are not quite ready to stop work.
Working on areas that interest you
Another component of a lifestyle business is the ability to work on areas that interest you. It may not be the most profitable area to be working on, but if you gain a lot from the pleasure of working in a particular area, this may be more important than anything else.
Working where you want
Your lifestyle business may provide you the ability to work wherever you want to work. There may be ways of tailoring how you operate your firm around your travels. Or you may opt to work entirely remotely, with this allowing you to be based wherever you want to be based.
Not taking on certain opportunities
Another component of a lifestyle firm is the ability to decide not to take on certain opportunities. There may be areas that make financial sense, but if they don’t align with your personal goals, may not be worth taking on.
Final thoughts: Make sure that your lifestyle business is still profitable
While there may be many ways that you are able to adapt a business around your ideal lifestyle, it is also important not to lose sight of the ultimate need that the firm makes money. If you are never actually profitable, your lifestyle business may instead be an expensive hobby. Even if profit is not your ultimate objective, keeping in mind the importance that the business is viable may help ensure that you actually have a business that can sustain your desired lifestyle long-term.