It's neither.
Lifestyle companies are fine, if that's what you're aiming for. I know plenty of people who run or work at ≈1-30 person companies with no intention to grow.
However, if you're going for high-growth, you need to plan for success. I've seen many potential unicorns stopped by simple lack of planning early on. Despite all the pivots which happen, if you haven't outlined a clear path from 1-3 people in a metaphorical garage to reaching $1B, it almost never happens, and sometimes for stupid reasons.
If your goal is 5000 paying customers at $100 per year and $500k in annual revenues, that can lead to a very decent life. However, it's an entire different ballgame: (1) Don't take in investment (2) You probably can't hire more than one person (3) You need a plan for break-even revenue before you need to quit your job / run out of savings. (4) You need much greater than the 1-in-10 odds of success.
And it's very possible (and probably not even hard) to start a sustainable 1-5 person business with >>50% odds of success, especially late career:
- Find a niche you're aware of from your job
- Do ballpark numbers on revenues. These should land in the $500k-$10M range. Less, and you won't sustain. More, and there will be too much competition.
- Do it better than the (likely incompetent or non-existent) people doing it now
- Use your network of industry contacts to sell it
That's not a big enough market you need to worry about a lot of competition, competitors with VC funding, etc. Especially ones with tall moats do well -- pick some unique skillset, technology, or market access, for example.
However, IF you've e.g. taken in VC funding, then you do need to plan for growth, and part of that is planning for the small odds your customer base (and ergo, your data) does grow.