A Start-Up Company these days, fits in our minds in this age as some young kid either out of College, or University or who has even dropped out of those institutions, with some technological advantage or out of the box thinking and who for some unknown reason has some incredible advantage over the rest of us. These potential Maverick Companies at some time or another seek Venture Capital. Think Elon Musk.
On the other hand, a “Lifestyle business” is a term not so new, however in the startup lexicon it refers to businesses that aren’t a fit for venture capital. As Bplans Daily says the phrase “Lifestyle Business,” issometimes used derogatorily, implying that these businesses are somehow easier to build and less worthwhile. “This notion is completely false, as many lifestyle businesses are great companies that can lead to a prosperous and fulfilling life for their founders.” Bplans Daily.
So, what is a lifestyle business and does a start-up Entrepreneur fit within the defined criteria? As the words imply, a Lifestyle Business is one that’s started with the express desire or goal to allow the owners to have a GREAT life.
On the other hand, a Start -Up is often funded by Venture Capital at some stage and certainly these days, when the cost of innovative software or infrastructure is prohibitive. It’s not that a Start -Up Company by definition has to provide a return for investors and a Lifestyle business does not; it’s more that we associate the words “Start-Up,” with a company that’s run to provide a return to investors.
Now, more to the point, it’s worth noting that companies that don’t raise venture capital are the vast majority of businesses and the ones I’ve been interested in. The reason for this is that it is easy enough to start a business but many people who do that forget a whole lot of things and just dive straight into it, without any plan in mind. It’s for these people for whom I write this blog.
When many people go out on their own, they do so with some formal qualifications, some trade or apprenticeship or some experience that they feel is enough for them to run their own business. So, the first caveat is to remember that knowing your trade or profession only qualifies you to do that sort of work at whatever the hourly rate is. If you’re lucky, and are very good, you can charge a premium for your products or services.
Now, what’s really needed, (sooner than later), is some business knowledge on not only how to do your job and deliver your services and products in a competent manner, but a whole host of things like, how to generate leads, track your conversion rates, differentiate yourself in a very, very noisy marketplace, know your numbers intimately and have some sort of destination in mind. From the outset it will pay you well to have defined your culture and establish your values so that those coming on board can understand what is required of them.
So, what I’m really saying is that it’s not enough to “know” your business but it’s essential to know “how” to run a business. These are two diametrically different things.
When your business is making money and you have a few systems in place, you will always need to be focusing on Sales and Marketing apart from Delivery and Distribution. The latter two most business owners are occupied with, leaving no time for the former two, which are essential for a healthy business.
People in business often complain about never having enough time and don’t have a balanced life, yet imbalance will always occur when you don’t do the essential things with the time you have.
To recap, a Start-Up Company these days is considered to be one of many Companies that may possibly make it with some genius invention or innovation whereas, if you’re like most of us, plan for a Lifestyle Business where you can have the best of both worlds and have the life you want.
Image Credit: Unsplash.com/Crew
Chris Borrett