Every business operates differently internally and externally. However, the goal behind the business is not as a business owner, there are really only two options. Are you running your business to clock out at 5PM and achieve the lifestyle you always wanted? Or are you running your business to create a name for yourself and be able to pass it down to a new generation?
Creating a Lifestyle
The guiding principle behind a Lifestyle business is to create and sustain a particular level of income for the founders or owners, nothing more.
This does not mean that lifestyle businesses can’t be significant. Such companies can easily be multi-million dollar companies in terms of revenue or equity. However, they tend to be self-limiting in their ability to expand. 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.
Building a Legacy
Legacy businesses not only have the potential to move beyond their founders, its fundamental rationale is to do so. The one key component that differentiates lifestyle from scalable businesses is process. Every step within the business operations is meant to grow and, literally, scale the company. Although lifestyle businesses can last a lifetime, a legacy business is built in order to grow larger financially and professionally.
Which is Right For You?
Both choices are going to require a lot of work up front. You hear lots of stories about lifestyle business owners who turned a hobby or side hustle into a job that supports them full time. But in the vast majority of cases, they spent years building that business while working full time because they didn’t want to take outside funding.
But a successful lifestyle business doesn’t require a ton of work once it’s up and running successfully.
You likely won’t become a multi-millionaire running a lifestyle business, but you can make a comfortable living and that coupled with smart investing can mean you will be financially secure.
In a growth-minded business, the insane pace at the start rarely lets up. It’s less risky for you though if you find outside funding. If the venture fails, it’s not your money on the line. You can also look for the quick score. Start the business, bring in funding, and selling it off for big money. You put in a lot of effort and time up front, but you could walk away never having do work another minute for the rest of your life.