Doug Richard: Why do people hate lifestyle businesses?

I don't think it's a matter of "hating" lifestyle businesses. It's just that most normal people don't see a 1-man operation as a "business". They assume that if you don't at least have plans to grow, you're just trying to puff yourself up. My guess is that if you said you were a "contractor" or "consultant", there would be less antipathy.

That said, why should you care? If you're happy being a 1-man shop, just laugh at their "hate"!

Re: Doug Richard: Why do people hate lifestyle businesses?

#5

Post by soundlab » Thu, Jul 15, 2010, 12:38 PM UTC

Anyone who thinks "lifestyle businesses" are a waste of time should look through some of the very small (in employees) companies for sale on bizbuysell.com. Yes, the sandwich shops and laundromats are poor earners, but I have run across 2-3 man operations selling niche products like vintage car parts that profit $500K-1M/year. I'll take earnings like that over "top tier VC", ridiculous business plan competitions, self-promoting PR, and dealing with staff any day.

Re: Doug Richard: Why do people hate lifestyle businesses?

#6

Post by BerislavLopac » Thu, Jul 15, 2010, 12:44 PM UTC

rmah wrote: post #4

I don't think it's a matter of "hating" lifestyle businesses. It's just that most normal people don't see a 1-man operation as a "business". They assume that if you don't at least have plans to grow, you're just trying to puff yourself up. My guess is that if you said you were a "contractor" or "consultant", there would be less antipathy. That said, why should you care? If you're happy being a 1-man shop, just laugh…

Sorry, but why should a lifestyle business be a one-man operation? As I see it, a lifestyle business is a regular company like any other, with employees and everything -- but with no plans (or even possibilities) for huge growth, acquisition or IPO. Simply, a business which allows its owner to get a sizable salary without much work, but would never bring them millions in a liquidity event.

Re: Doug Richard: Why do people hate lifestyle businesses?

#7

Post by lol » Thu, Jul 15, 2010, 12:59 PM UTC

rmah wrote: post #4

I don't think it's a matter of "hating" lifestyle businesses. It's just that most normal people don't see a 1-man operation as a "business". They assume that if you don't at least have plans to grow, you're just trying to puff yourself up. My guess is that if you said you were a "contractor" or "consultant", there would be less antipathy. That said, why should you care? If you're happy being a 1-man shop, just laugh…

Lifestyle businesses aren't 1-man operations. There are lots of "lifestyle businesses" that make reliable two comma incomes.

Re: Doug Richard: Why do people hate lifestyle businesses?

#8

Post by pxlpshr » Thu, Jul 15, 2010, 1:24 PM UTC

It's not that people hate lifestyle businesses, it's that a lot of people inappropriately label their lifestyle businesses as "startups". For the people that have worked 70+ hours a week, took no salary, and have lived through the pain, blood, tears, sweat in an attempt to build a sustainable business -- it's kind of a slap in the face.

I used to run a lifestyle business (ad agency), worked 40 hours a month and netted almost a quarter a year. However, I left to that to not just pursue fu money but more importantly, build a purpose-driven business that hopefully enabled me to spend my later life dedicated to philanthropy.

Re: Doug Richard: Why do people hate lifestyle businesses?

#9

Post by FreeRadical » Thu, Jul 15, 2010, 1:46 PM UTC

pxlpshr wrote: post #8

It's not that people hate lifestyle businesses, it's that a lot of people inappropriately label their lifestyle businesses as "startups". For the people that have worked 70+ hours a week, took no salary, and have lived through the pain, blood, tears, sweat in an attempt to build a sustainable business -- it's kind of a slap in the face. I used to run a lifestyle business (ad agency), worked 40 hours a month and nette…

Just out of interest, why did you leave that business when you only had to work on it 40 hours a week. You probably could have started your second business at the same time.

Re: Doug Richard: Why do people hate lifestyle businesses?

#10

Post by jaxn » Thu, Jul 15, 2010, 1:53 PM UTC

soundlab wrote: post #5

Anyone who thinks "lifestyle businesses" are a waste of time should look through some of the very small (in employees) companies for sale on bizbuysell.com. Yes, the sandwich shops and laundromats are poor earners, but I have run across 2-3 man operations selling niche products like vintage car parts that profit $500K-1M/year. I'll take earnings like that over "top tier VC", ridiculous business plan competitions, sel…

Thanks for the pointer to bizbuysell.com! I am going to have hours of fun perusing that one.

Edit: ooooh! Email alerts matching my criteria!