Where most people are chasing the next promotion or seeking millions in funding for their tech startup, lifestyle business owners walk in a different direction.

If you’re like me and pursue a more fulfilling life with greater control of your time, all while allowing flexibility to work from anywhere in the world, a lifestyle business might be a good fit.

It’s not all working from your laptop at the beach for an hour a day, as some self-proclaimed gurus might tell you though. You won’t be quitting your job this week and vacationing in Bali the next. When executed well, however, you are eventually left with more time on your hands to do the things that matter.

I’m not here to sell you on the idea of lifestyle businesses. The truth is, it’s not the right fit for everyone. But if this sounds like a life you want to build, I hope this article gives your insight into this form of business, along with some ideas and examples to help you to get started.

Why Should You Listen to Me?

I didn’t intend on creating a lifestyle business; it just kind of happened. What started as a website to practice my knowledge of SEO ended up becoming an affiliate website that took off on its own.

That’s not to say I hadn’t considered the idea of a lifestyle business beforehand. I found my inspiration inside the pages of The 4-Hour Workweek, a book that is heavily criticized but is a great reminder to “keep it simple and outsource everything”.

It answered some questions and prompted some other questions, but more than anything else—it got me thinking.

My first website showed me it was possible. The skills I developed while building that site helped me to begin consulting, which gave me the freedom to leave Australia to live in a location more in line with my and my wife’s goals. Later, I built a small Fulfillment by Amazon business, and after that some productized services, rank and rent websites, and larger affiliate sites.

I am no expert. But I have learned from taking action. Failure preceded any of these small successes but has brought me to where I am today. I encourage anyone who wants to build a lifestyle business to research what others have done, not the story they are selling.

What Is a Lifestyle Business?

In the simplest of words, a lifestyle business is any business that supports and enables the lifestyle you want to create. That may involve working from your home during the time of day when you have the most energy, or while traveling the globe. The choice is yours.

We can all debate what qualifies as a lifestyle business. For some, it involves an online store and for others, it’s a weekly podcast.

That said, I’d like to point out that a lifestyle business works best for certain kinds of people. If climbing the corporate ladder and building a million-dollar enterprise gets you excited, then perhaps a lifestyle business should not be at the top of your list.

But if you seek a stable income that supports your lifestyle without giving in to the hustle of a 9-5, then you’ll find many benefits here that your spot in a cubicle won’t provide.

Lifestyle Business vs Startup: What They Don’t Tell You

It’s easy to see why many people confuse startups and lifestyle businesses. They’re both new ventures that you’re going to be putting time and effort into.

But while startups focus more on rapid growth, lifestyle businesses take a different approach.

Let’s Talk Funding

Unlike startups, you probably won’t need any venture capital for your lifestyle business. This is good as you’re responsible only for yourself. Lifestyle business owners rely on personal funds, savings, or small business loans—though the latter isn’t as common.

You’ll have more room to work at your own pace on your own goals without having to worry about any “aggressive growth” investors breathing down your neck. This takes away a lot of the stress which comes with starting your new business.

9-to-5 Commitment

Don’t let the high-end lifestyle fool you. Funded startups are all-consuming, full-time jobs. From hiring the right people to making sure they are constantly hitting targets, if you don’t own 100% of the shares, it’s unlikely you’ll own 100% of your time.

A lifestyle business can be a breath of fresh air for those looking to get away from this never-ending hustle. Being in charge of your schedule is liberating and once you have an automated lifestyle business (either using computers or people), you can greatly reduce your time commitments too.

Risky Business

There’s a certain amount of risk that comes with startups. For every startup that makes it big, there are a hundred others that bite the dust. That shouldn’t deter you if building a startup is something you want, of course.

On the other hand, you’re likely to have fewer overhead costs as a lifestyle business and this works well for entrepreneurs who aren’t too keen about putting everything on the line.

6 months ago, before much of the world was locked down with this COVID-19 situation, many people may have been dreaming about multi-million dollar exits. Today things are very different.

Many high-profit low expensive lifestyle businesses have been able to adapt and remain viable, whereas many businesses that relied on future gains from high valuations by reinvesting everything and taking on debt have faced much greater challenges.

Big, Small, and Everything Else in Between

A lifestyle business is whatever you want it to be.

“When you make a company, you make a utopia. It’s where you design your perfect world.”

DEREK SIVERS

You may only want to commit 6 hours a week this month and go full throttle the next. There’s no pressure of doubling sales every month unless that’s what you want.

Being able to scale up or slow down is not something a lot of businesses can brag about. The fact that you can fine-tune all these aspects is why lifestyle businesses have a growing appeal.