Growth vs Lifestyle Businesses. Which one is for you?

As an entrepreneur, a crucial decision you face is selecting the right business model. The well-known Growth Model, characterized by rapid growth and hard work, is not the only path. Another viable option is the Lifestyle Business Model, which molds your business to fit your desired lifestyle rather than letting your business dictate your life. This model embodies the philosophy of "Work Less and Live More," and it could be the key to aligning your business with your personal aspirations.

Let me share my personal journey. For the past decade, I've been part of the fast-paced entrepreneurial race, running an agency and leading a growth-oriented seven-figure business. But I found myself entrenched in a narrative of relentless work and personal sacrifices for professional success. The burnout I experienced in 2022 was a wake-up call, prompting me to seek a different approach. I spent over a year researching and reflecting on how to work smarter, not harder, leading me to discover the Lifestyle Business Model.

This shift has been immensely rewarding. I now earn more while working less, having increased my income by 300% and reduced my working hours by half. I even manage to travel to Bali four times a year. The 'Work Less, Live More' mindset has been transformative, offering me the chance to attain financial success while reclaiming my time and freedom. It's a testament to the potential of the Lifestyle Business Model in empowering entrepreneurs to craft their business around their desired life.

Understanding the difference between a Growth Business Model and a Lifestyle Business Model is crucial for entrepreneurs.

A growth business is geared towards rapid expansion, with its main goals being a large market share, high profitability, or a successful exit strategy. This model is often associated with tech startups but can be applied in any industry.

On the other hand, a lifestyle business is designed to support a specific lifestyle or income level. Its primary objective is not to maximize profits or revenue but to maintain the owner's lifestyle, provide flexibility, and facilitate personal fulfilment. Lifestyle businesses prioritize slower, steady growth, and focus on delivering premium products or services at higher prices to keep overhead low. They also make use of tools, outsourcing, and smart systems to save time and reduce stress.

Understanding these models can guide you in determining which business model is the best fit for your personal and professional goals.

Comparing Lifestyle and Growth Businesses

Which business model is right for you?

Before you choose, these are three things to consider

1. What are your goals - personal and professional?

This is the time for you to do some soul-searching. What is important to you as an entrepreneur and as a person? If you want to reach for the stars, earn a ton of profits, and maybe achieve an IPO or exit, the growth model is for you. On the other hand, if you're looking to cultivate a fulfilling personal life while working less, then you should opt for a lifestyle business.

2. Does your business need financing?

Can you bootstrap your business, or do you need to raise funds? By bringing on investors, you're pushed to focus on growth. Most lifestyle businesses are self-sufficient and allow the founder to grow at their own pace.

3. Do you like having a team?

If you dislike working alone and enjoy managing people, the growth model might be more suited to you. It offers an opportunity for you to flex those skills as you expand your business. However, if managing a team sounds like a headache and you enjoy your solo time to focus on your friends and family, the lifestyle business model is for you!

Check out this quiz to see which business model is right for you!

Frequently Asked Questions (FAQs)

1. How does a lifestyle business differ from a growth business?

   Lifestyle businesses focus on maintaining a balance between work and life, often growing at a slower pace. In contrast, growth businesses prioritize rapid expansion, often at the expense of work-life balance.

2. What type of funding does each business model typically rely on?

   Lifestyle businesses are typically bootstrapped, relying on personal savings and profits. Growth businesses, on the other hand, often need outside investment, such as venture capital or angel investors.

3. Can a lifestyle business generate significant profit?

   Yes, despite their primary aim of maintaining the owner's lifestyle, lifestyle businesses can generate significant profits, sometimes seven figures or more.

4. How does one choose between a growth business and a lifestyle business model?

   Choosing between a growth and a lifestyle business model primarily depends on one's personal and professional goals, the need for financing, and the preference for having a team.

Conclusion

Ultimately, whether you opt for a growth business model or a lifestyle business model depends largely on your personal and professional objectives. If rapid expansion and potential high profitability align with your goals, a growth model could be the right choice. Alternatively, if you value work-life balance and personal fulfilment, a lifestyle model may be more suitable. Remember, the choice isn't necessarily permanent. If you are currently in the growth model mindset, and are looking to transition, it’s not too late - I have done it too!

If you’re ready to embrace the lifestyle business model, focus on your personal life, and feel better mentally, physically and holistically, check out my upcoming course “Work Less, Live More”: 2-Month Community Coaching Cohort where I teach you how to …

• have a business that aligns with your values
• have a brand that speaks to your audience on a deep level
• learn how to scale your business by working smarter, not harder
• start living the life you desire
• gain access to all my systems, strategies, frameworks, templates, and tools
• become part of an incredible community of solopreneurs who share the same value

Still not sure what type of business model is right for you? Reach out! I am currently offering a free 30-minute 1:1 consultation to help entrepreneurs identify and start working towards their ideal business model. Let’s have a call!