In the past five years, the idea of a lifestyle business that allows people to work from home and earn more than a traditional job has gained popularity.
Some coaches use this concept as a marketing strategy to attract those who wish to leave their jobs and work from home, making a significant income.
While this approach may cover expenses and offer a sense of creative fulfillment, it is not the most effective way to build a valuable business.
The concept of time freedom and working from home in a lifestyle business is becoming less viable.
Lifestyle business owners often prioritize their personal wealth, which can make it challenging to attract and retain top talent. Although some individuals may be willing to work for these businesses in the short term due to financial incentives, it is difficult to attract high-performing team members without a larger vision.
To create a successful business with a purpose, mission, and vision that attracts top talent, entrepreneurs must move beyond the idea of a lifestyle business.
Building a brand that grows beyond the individual and establishing a physical workplace can contribute to a company's success.
To scale a company beyond $10 million in annual revenue, a strong team and high-performing members are essential.
These individuals may have the potential to be entrepreneurs themselves but choose to work with you because of your vision and the company's future prospects.
Also, lifestyle businesses may have fewer options for exiting, such as selling or merging with another company, as they are often closely tied to the owner's personal brand and skill set.
Blurred lines. Despite the appeal of achieving a better work-life balance through a lifestyle business, many entrepreneurs may find it difficult to separate their personal and professional lives. This can lead to stress, burnout, and other negative impacts on well-being.
Lifestyle businesses often have unpredictable income streams, which can create financial stress and make it challenging to plan for the future. Additionally, these businesses may have limited access to funding and resources compared to more established organizations.
Risk of stagnation. As lifestyle businesses are typically designed to maintain the status quo, they may become stagnant over time. Without continuous improvement and adaptation to market changes, these businesses may struggle to remain competitive.