A fundamental question for any entrepreneur: What do I want from my business?

[Ravens_Shadow]

I’ve got a friend that I call a few times a month to see if he’s taken action on his ideas and help him break down any barriers he may have. We’ll talk about what he’s doing and he’ll throw up a bunch of excuses about why he can’t launch yet, albeit it’s been 4 years since he started his entrepreneurial journey. His excuses may be something like this; “I have to have videos first, I have to have a website first, I have to have this and that before I can make my first calls”. Mind you, this cycle has been going on for years, but he's made a bit of cash here and there while hustling.

I never knew if there was a single question I could ask that would help him find out what it was he really wanted from being an entrepreneur.

I had a thought that maybe I should figure out what question should be asked at the beginning of anyone's journey.

The question that popped into mind was: Do you want a lifestyle business, or an enterprise?

It turns out he wanted a lifestyle business, but was getting advice from someone building an enterprise. He never knew that what he wanted was a lifestyle business, but now he can go out and get the resources he needs to get it done.

I think that this is a fundamental question that any entrepreneur should ask themselves before starting any sort of business.

What is it that you are wanting out of your journey? What do you want your journey to look like?

Let's break down the two business types.

Lifestyle Business: Some E-commerce/Amazon businesses, drop shipping, SEO services, copywriting services, Freelancing, other internet related ventures that focus solely on you as the one and only “employee” in a company. Lifestyle businesses make enough to cover your lifestyle and that’s about it. They allow you to potentially work a few hours a day, if that, and from anywhere in the world. Disclaimer: Some lifestyles may require millions of dollars a year, so you make that much to suit your lifestyle.

• Do you want “profitability” within 1-2 years, or even after few product sales?
• Do you want to be able to work from anywhere in the world with just a laptop and an internet connection?
• Do you want to travel a ton and have your journey to be filled with daily adventures?
• Do you want to do whatever you want, whenever you want, without worrying too much about money?
• Do you want to work as little as possible, no shame in this, and still be able support your lifestyle?

If you answered yes to most of these questions, you probably want a lifestyle business.

Enterprise: Some software companies, franchises, massive brands (Yeti Coolers, Johnson and Johnson, Hershey's), large brick and mortar operations (BNSF Railroad, RotoRooter, Gamestop), real estate. Enterprises are huge beasts of scale and a product of relentless execution. Businesses that are at the top of their game, with the intent to dominate a particular market. Enterprises offer you the chance to exit for a large sum of F*ck you money, in exchange for sacrificing 10 years of your life.

• Are you looking to build something with massive scale and impact?
• Are you looking to build something with the intent to exit for 8 figures or more?
• Are you looking to build a team that can take you places farther than you could ever go on your own?
• Are you interested in being a CEO of a large company?
• Are you interested in working 60-80 hour weeks for years? 40 hours from a dayjob are included in this estimate and don’t burn yourself out people, be smart.
• Are you willing to risk 5, 10, or more years of your life to see a business idea through to its fruition?
• Are you looking to get investors to invest in your products and ideas?
• Are you looking for your own David vs Goliath journey?
• Are you looking to push yourself to your limits and build a legacy?

If you answered yes to most of these questions, then an enterprise business is probably for you.



The right choice is what it is you want for yourself. For me, I want an enterprise. I want to take down some of the biggest companies in my industry. I don’t care about traveling, or going places. I just want a massive project to work on and lead a team, as that’s what satisfies me.

What would satisfy you might be sipping coconuts on a beach in Puerto Rico and enjoying seeing $500 in profit for the day. You might enjoy a trip to Thailand to meet up with other like minded lifestyle entrepreneurs for a few months just because you have the freedom to do so.

Not everything is sunshine and rainbows, and both journeys have their own challenges.

Think about what sort of business it is that you want, lifestyle or enterprise, and then figure out how to build it.

 

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[eliquid]

The beautiful thing is, you can have multiple lifestyle businesses.

More than likely, you can't do that with an enterprise.

That's what I have been focusing on my entire life, several lifestyle businesses at once. It just fits me personally.

I like putting things in buckets.

1 lifestyle business pays my bills and affords me to travel.

Another acts as my savings and retirement channel.

Another funds me building another business ( real estate ).

I kinda took the idea from Rich Dad, Poor Dad and Ramit Sethi. If I want something, I build a business/cash flow to get it. I don't spend my current cash flow on it.

.

 

[MTF]

Thanks for confirming that I have no desire whatsoever to build an enterprise business. Sounds like hell to me. But just to emphasize, nothing wrong with those who enjoy it—to them, a lifestyle business surely sounds like hell. As long as your business gives you what you need, everything's alright.

 

[biophase]

If you build a lifestyle business, what happens when your lifestyle changes. In my opinion, it all sounds great but you are severely limiting yourself.

For example, I had an easy dropship business making an easy $50k a year on 1-2 hours a day 12 years ago. Yes it was an easy life, but where would that business be today? Is $50k a year enough when I'm 12 years older?

For those of you that are in your early 20's and figure out how to make $100k a year while traveling the world. How will you feel when you are 35 and that business has shuttered or still only making $100k?

If your business is doing well and you might as well grow it to the best of your ability. Don't say, I don't want employees and handcuff your growth. So you're making $100k at 22, why not try to make $1M/yr at 30? Then see how will you feel at 35.

I made the conscious decision to stop dicking around and go from dropship to import, to warehousing, to employees in 2011. I knew I wouldn't be able to travel as much, but by 2013, I was making $200k a year with an employee.

The difference was that before 2011, I was traveling while making $50k, staying in cheap hotels. After 2013, I was traveling even more while making $200k, staying wherever I wanted.

 

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[Andy Black]

I work from home so I can spend more time with my kids and family. I’ve no interest in getting an office or hiring employees. I’ll grow my business using processes and technology (and by picking/finding a model that can allow me to scale without increasing headcount).

 

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[Lex DeVille]

Thanks for confirming that I have no desire whatsoever to build an enterprise business. Sounds like hell to me. But just to emphasize, nothing wrong with those who enjoy it—to them, a lifestyle business surely sounds like a hell. As long as your business gives you what you need, everything's alright.

Me either. I do enjoy impacting people at scale, but have come to the conclusion that an enterprise business isn't for me, and I wouldn't be a good fit to run one. Too likely to change my mind, decide I hate it and shut it down before it grows or reaches exit point. My perfect picture is a simple empire. Less people and systems involved the better.

 

[Ravens_Shadow]

That's interesting.
The prospect of launching something that you can't easily shut down terrifies me. You have to be very resilient or just love the process so much that the responsibilities don't bother you much.

At first I was scared of this too. For instance, we have a fortune 20 company depending on our software for some of their advertising media, so I'd say the stakes are pretty high in terms of us having to perform well as a company. I could be worried about "what if we go under, what happens then, how do we tell the customers", but to me it's just worrying about something that is currently a non-issue. I love having giant companies as clients and it really puts the thrill in what I do. Some company will buy and I go "Damn, I've played their games" or I saw the car that was in the commercial that used our software and it makes me feel good knowing that our software may have helped them sell that vehicle.

The fulfillment far outweighs the fear.

In terms of getting little to no money, that's completely true too. I've been running my company for 2 1/2 years now and I think I've gotten maybe $2k out of the whole thing when I needed money. I just pay others first and work a day job in the meantime. I know that I will be rewarded handsomely soon and will be able to quit my job any day now.

 

[MHP368]

Can a lifestyle business transition into an enterprise business?

It kind of has to , if youre in your early 20's then yeh , freelance from a 400 dollar laptop from a beach in thailand. Soak it up.

But even a third world belize / southeast asia lifestyle would require a quarter to a half million dollar nest egg as an early retirement scheme.

At some point you have to realize whatever youre doing is subject to change , better to build strong and fast and aim for the buyout for real freedom.

Yesterdays digital nomad skillset is todays 5 dollar an hour upwork hire.

 

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[MTF]

Too likely to change my mind, decide I hate it and shut it down before it grows or reaches exit point.

That's interesting.

I admire people who're capable of setting up a huge organization and following through for years to come despite only getting a small salary (if that). The prospect of launching something that you can't easily shut down terrifies me. You have to be very resilient or just love the process so much that the responsibilities don't bother you much. I would most certainly break down in a matter of months at most. I'm glad that there are people who enjoy it.

By the way, here are a couple of lesser-known books for those interested in a lifestyle business:

https://www.amazon.com/dp/B06Y4V1L9D/?tag=tff-amazonparser-20
https://www.amazon.com/dp/B078962RHQ/?tag=tff-amazonparser-20
https://www.amazon.com/dp/B0784VNMDT/?tag=tff-amazonparser-20

Also, a lifestyle business owner needs to be well-versed in the 80/20 principle: The 80/20 Principle Library

 

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[MJ DeMarco]

I saw it more like: Enterprise business transition to lifestyle business.

Yup, this is the philosophy I espouse. I started with an enterprise business, now I feel like I have more of a lifestyle business-- because I can.

 

[Longinus]

Great post man.

You can easily see the difference in ambition on many forum members.

I think many folks start out wanting a lifestyle business (enjoy free time, not working for a boss, traveling etc) but slowly evolve in wanting an enterprise in time. That's my situation also.

 

[MJ DeMarco]

Excellent post my brotha! Rep+!

 

[biophase]

Lifestyle Business:

• Do you want “profitability” within 1-2 years, or even after few product sales?
• Do you want to be able to work from anywhere in the world with just a laptop and an internet connection?
• Do you want to travel a ton and have your journey to be filled with daily adventures?
• Do you want to do whatever you want, whenever you want, without worrying too much about money?
• Do you want to work as little as possible, no shame in this, and still be able support your lifestyle?

Enterprise:

• Are you looking to build something with massive scale and impact?
• Are you looking to build something with the intent to exit for 8 figures or more?
• Are you looking to build a team that can take you places farther than you could ever go on your own?
• Are you interested in being a CEO of a large company?
• Are you interested in working 60-80 hour weeks for years? 40 hours from a dayjob are included in this estimate and don’t burn yourself out people, be smart.
• Are you willing to risk 5, 10, or more years of your life to see a business idea through to its fruition?
• Are you looking to get investors to invest in your products and ideas?
• Are you looking for your own David vs Goliath journey?
• Are you looking to push yourself to your limits and build a legacy?

I had to go back and remind myself what the initial post was actually saying.

I think that the enterprise questions here are a huge limiting belief. Where's the choice in here for an inbetween business? Where is the business that has a team, makes 7 figures where the CEO is working 10 hours a week and travels the world?

These 2 choices are basically the extreme edges of running a business. Most of the people I know are somewhere in between the two.

And also, I think there is also a big downfall to the extreme lifestyle business. These questions aren't really representative of their lives.

• Do you want to do whatever you want, whenever you want, without worrying too much about money?
• Do you want to work as little as possible, no shame in this, and still be able support your lifestyle?

You can do whatever you want, whenever you want, but within the means of your business. You absolutely worry about money. This is why you are in Bali or some cheaper country rather than partying in Monaco.

When you make enough to only support your lifestyle, you aren't investing in your future. So when your lifestyle business dries up, you end up at square 1, but with awesome memories. So you may have a great life between 25-30, but what happens at 31 when your income dries up and you didn't buy any bitcoin? Time to start a new business or get a job.

Many of my friends' businesses are now maturing. I can see distinct differences in the evolution, there are some that have made $50k/yr for 8 years (true lifestyle), some that went from $50k-$200k, some from $50k to $500k and some all the way up to over $1M per year.

I have not seen that the owners going from $50k-$1M have worked harder than any others as time progressed, in fact it's been the opposite as they have add employees. But it's true the ones staying at $50k/yr have definitely worked less than the ones that have increased income.

However, here is the HUGE difference. The ones that remain at $50k have had the same lifestyle the whole time. They still have to work.

The ones growing to $200k are doing pretty well, decent car, nice home, slowly increasing net worth.

However, the ones that break the $500k/yr are miles ahead now. While you may think $200k/yr is nice, imagine getting an extra $300k/yr for a few years. Now you are able to put money into investments. Whatever you did with $300k in the past 2-3 years (crypto, stocks or real estate), you did really well. That extra $300k X 3 years could easily be worth $2M-$3M now.

 

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[Timmy C]

I’ve got a friend that I call a few times a month to see if he’s taken action on his ideas and help him break down any barriers he may have. We’ll talk about what he’s doing and he’ll throw up a bunch of excuses about why he can’t launch yet, albeit it’s been 4 years since he started his entrepreneurial journey. His excuses may be something like this; “I have to have videos first, I have to have a website first, I have to have this and that before I can make my first calls”. Mind you, this cycle has been going on for years, but he's made a bit of cash here and there while hustling.

I never knew if there was a single question I could ask that would help him find out what it was he really wanted from being an entrepreneur.

I had a thought that maybe I should figure out what question should be asked at the beginning of anyone's journey.

The question that popped into mind was: Do you want a lifestyle business, or an enterprise?

It turns out he wanted a lifestyle business, but was getting advice from someone building an enterprise. He never knew that what he wanted was a lifestyle business, but now he can go out and get the resources he needs to get it done.

I think that this is a fundamental question that any entrepreneur should ask themselves before starting any sort of business.

What is it that you are wanting out of your journey? What do you want your journey to look like?

Let's break down the two business types.

Lifestyle Business: Some E-commerce/Amazon businesses, drop shipping, SEO services, copywriting services, Freelancing, other internet related ventures that focus solely on you as the one and only “employee” in a company. Lifestyle businesses make enough to cover your lifestyle and that’s about it. They allow you to potentially work a few hours a day, if that, and from anywhere in the world. Disclaimer: Some lifestyles may require millions of dollars a year, so you make that much to suit your lifestyle.

• Do you want “profitability” within 1-2 years, or even after few product sales?
• Do you want to be able to work from anywhere in the world with just a laptop and an internet connection?
• Do you want to travel a ton and have your journey to be filled with daily adventures?
• Do you want to do whatever you want, whenever you want, without worrying too much about money?
• Do you want to work as little as possible, no shame in this, and still be able support your lifestyle?

If you answered yes to most of these questions, you probably want a lifestyle business.

Enterprise: Some software companies, franchises, massive brands (Yeti Coolers, Johnson and Johnson, Hershey's), large brick and mortar operations (BNSF Railroad, RotoRooter, Gamestop), real estate. Enterprises are huge beasts of scale and a product of relentless execution. Businesses that are at the top of their game, with the intent to dominate a particular market. Enterprises offer you the chance to exit for a large sum of F*ck you money, in exchange for sacrificing 10 years of your life.

• Are you looking to build something with massive scale and impact?
• Are you looking to build something with the intent to exit for 8 figures or more?
• Are you looking to build a team that can take you places farther than you could ever go on your own?
• Are you interested in being a CEO of a large company?
• Are you interested in working 60-80 hour weeks for years? 40 hours from a dayjob are included in this estimate and don’t burn yourself out people, be smart.
• Are you willing to risk 5, 10, or more years of your life to see a business idea through to its fruition?
• Are you looking to get investors to invest in your products and ideas?
• Are you looking for your own David vs Goliath journey?
• Are you looking to push yourself to your limits and build a legacy?

If you answered yes to most of these questions, then an enterprise business is probably for you.



The right choice is what it is you want for yourself. For me, I want an enterprise. I want to take down some of the biggest companies in my industry. I don’t care about traveling, or going places. I just want a massive project to work on and lead a team, as that’s what satisfies me.

What would satisfy you might be sipping coconuts on a beach in Puerto Rico and enjoying seeing $500 in profit for the day. You might enjoy a trip to Thailand to meet up with other like minded lifestyle entrepreneurs for a few months just because you have the freedom to do so.

Not everything is sunshine and rainbows, and both journeys have their own challenges.

Think about what sort of business it is that you want, lifestyle or enterprise, and then figure out how to build it.

REP + i want a lifestyle business and have no interest in an enterprise. This has made it clearer on where i should direct my focus.

Thanks OP.

 

[Andy Black]

an enterprise business isn't for me, and I wouldn't be a good fit to run one. Too likely to change my mind, decide I hate it and shut it down before it grows or reaches exit point.

I'm like this. Maybe it's just a stage in my business journey, or maybe it's just the way I'm wired. It's why I don't want a partner though. I want to be able to twist and turn, change my mind, change it again, and keep moving forward - without having to justify or explain it to anyone else.

 

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[biophase]

I am going to be interviewed by the author of that second book for her next book. She had interviewed me a few months ago for an article in Forbes. She told me that most solopreneur businesses evolve into small businesses that take on employees. The reason is because these lifestyle businesses become too big for the a single person to manage and becomes a hindrance to the lifestyle that the person wanted in the first place. So they end up bringing on help eventually.

Elaine's book came out today so I guess I can post the short page that I'm in. I'm quoted in a few other places but they were just a couple sentences and not worth mentioning. I've haven't started the book yet, so I can't make any comment on the rest of it.

 

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[RazorCut]

This is something I have banged on about alot. What's the point in working on your terms if you build something that is at odds to the life you want to lead? It's why I suggest that you start with the destination and build a business that is capable of fulfilling those desires. Otherwise you are in danger of building a monster that will haunt your dreams and suck the life right out of you.

I've made the mistake on running with an idea only to find years down the line I didn't like where it had led me. I've also had small businesses that others had seen great potential in and were thrusting VC money at me, but I steadfastly refused to take it as I didn't what the stress and long hours needed to build a 60 or 100 restaurant chain.

There is an old saying "Be careful of what you wish for" I would bastardise that into "Be careful of what you build." Run your business, don't let the business run you.

 

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[ZF Lee]

I’ve got a friend that I call a few times a month to see if he’s taken action on his ideas and help him break down any barriers he may have. We’ll talk about what he’s doing and he’ll throw up a bunch of excuses about why he can’t launch yet, albeit it’s been 4 years since he started his entrepreneurial journey. His excuses may be something like this; “I have to have videos first, I have to have a website first, I have to have this and that before I can make my first calls”. Mind you, this cycle has been going on for years, but he's made a bit of cash here and there while hustling.

I never knew if there was a single question I could ask that would help him find out what it was he really wanted from being an entrepreneur.

I had a thought that maybe I should figure out what question should be asked at the beginning of anyone's journey.

The question that popped into mind was: Do you want a lifestyle business, or an enterprise?

It turns out he wanted a lifestyle business, but was getting advice from someone building an enterprise. He never knew that what he wanted was a lifestyle business, but now he can go out and get the resources he needs to get it done.

I think that this is a fundamental question that any entrepreneur should ask themselves before starting any sort of business.

What is it that you are wanting out of your journey? What do you want your journey to look like?

Let's break down the two business types.

Lifestyle Business: Some E-commerce/Amazon businesses, drop shipping, SEO services, copywriting services, Freelancing, other internet related ventures that focus solely on you as the one and only “employee” in a company. Lifestyle businesses make enough to cover your lifestyle and that’s about it. They allow you to potentially work a few hours a day, if that, and from anywhere in the world. Disclaimer: Some lifestyles may require millions of dollars a year, so you make that much to suit your lifestyle.

• Do you want “profitability” within 1-2 years, or even after few product sales?
• Do you want to be able to work from anywhere in the world with just a laptop and an internet connection?
• Do you want to travel a ton and have your journey to be filled with daily adventures?
• Do you want to do whatever you want, whenever you want, without worrying too much about money?
• Do you want to work as little as possible, no shame in this, and still be able support your lifestyle?

If you answered yes to most of these questions, you probably want a lifestyle business.

Enterprise: Some software companies, franchises, massive brands (Yeti Coolers, Johnson and Johnson, Hershey's), large brick and mortar operations (BNSF Railroad, RotoRooter, Gamestop), real estate. Enterprises are huge beasts of scale and a product of relentless execution. Businesses that are at the top of their game, with the intent to dominate a particular market. Enterprises offer you the chance to exit for a large sum of F*ck you money, in exchange for sacrificing 10 years of your life.

• Are you looking to build something with massive scale and impact?
• Are you looking to build something with the intent to exit for 8 figures or more?
• Are you looking to build a team that can take you places farther than you could ever go on your own?
• Are you interested in being a CEO of a large company?
• Are you interested in working 60-80 hour weeks for years? 40 hours from a dayjob are included in this estimate and don’t burn yourself out people, be smart.
• Are you willing to risk 5, 10, or more years of your life to see a business idea through to its fruition?
• Are you looking to get investors to invest in your products and ideas?
• Are you looking for your own David vs Goliath journey?
• Are you looking to push yourself to your limits and build a legacy?

If you answered yes to most of these questions, then an enterprise business is probably for you.



The right choice is what it is you want for yourself. For me, I want an enterprise. I want to take down some of the biggest companies in my industry. I don’t care about traveling, or going places. I just want a massive project to work on and lead a team, as that’s what satisfies me.

What would satisfy you might be sipping coconuts on a beach in Puerto Rico and enjoying seeing $500 in profit for the day. You might enjoy a trip to Thailand to meet up with other like minded lifestyle entrepreneurs for a few months just because you have the freedom to do so.

Not everything is sunshine and rainbows, and both journeys have their own challenges.

Think about what sort of business it is that you want, lifestyle or enterprise, and then figure out how to build it.

Can a lifestyle business transition into an enterprise business?

I know that business and personal goals can change as time goes by, so I might eventually want a bigger slice of pie.

 

[Andy Black]

The beautiful thing is, you can have multiple lifestyle businesses.

More than likely, you can't do that with an enterprise.

That's what I have been focusing on my entire life, several lifestyle businesses at once. It just fits me personally.

I like putting things in buckets.

1 lifestyle business pays my bills and affords me to travel.

Another acts as my savings and retirement channel.

Another funds me building another business ( real estate ).

I kinda took the idea from Rich Dad, Poor Dad and Ramit Sethi. If I want something, I build a business/cash flow to get it. I don't spend my current cash flow on it.

.

I got the same thing from RDPD.

Want something that costs $X/mth? Create a revenue stream of $X/mth.


I also think of my business as having multiple streams, where earlier streams pay for the setup and growth of later streams.

I started as a consultant/freelancer, and the revenue from that pays for my developer and graphic designer.

They then build landing pages for my clients, that becomes additional little revenue streams, and is a productised service and budding SaaS.

Last month I got a few more clients to allow me to pay my developer and graphic designer to build a landing page for my courses / email newsletter streams.

I always thought of the sliding scale of freelancer to agency to productised service to platform. What I didn’t envision was that I may end up occupying them all as moved along the scale.

 

[Rearden]

I think this is something that all entrepreneurs need to contemplate at the beginning of their journey, or where ever they are in the process. I worked my a$$ off for 10 years and found myself at the top of the mountain just to realize I climbed the wrong mountain. Now I am starting over. I developed a great skill set and motivation has not waned. But I am second guessing my second journey because I dont want to spend another 10 years climbing the wrong mountain. So think about this when you are starting. Where do you want to be in a year, 3 years, 5 years and so on? And if you dont know, just start working and figure it out on the way....Time is only lost when you are sitting still.

 

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[Fox]

Do I want to be like @Fox or @MJ DeMarco? Hmm....

To be honest, I don’t think an enterprise is necessary until you’re ready to settle down; but that’s only speaking on my behalf.

Eye opening post, @Ravens_Shadow.

I legit cracked up laughing at this.

I’m probably a pretty good example of someone who has the skills “to go pro” but has been Airbnb country hopping instead. I’ve stayed in over 20 countries in the last four years. I think I’ve done well to keep things over 100k yearly but there are times I’m curious what I could do with a dedicated home base.

Now that I’m in my 30s I do want to work on a “legacy” project and have a bit more impact than my past lifestyle has allowed me to. It’s hard to make big gains and also move countries every few months.

This post was great - lots of clarity on two very different ways of approaching “fastlane”.

 

[eliquid]

I'm in this position. But, to be fair, I have only worked here for 4 months so I don't yet have the right to take vacations. And, to be honest, I don't care for vacations. That's why I feel enterprise is my kind of endeavor.

I do feel, however, tempted by lifestyle businesses due to their development speed, as you mentioned. I feel this will provide me with the resources to quit my job and focus solely on my entrepreneurial career.

And, most of all, it will give me the much-needed experience without the potential downside being too high. At least that's how I feel.

I would still steer you away from "vacation" and "travel freely" mindset.

I used that as an example, since we were on the whole "trips" and such vibe.

Instead of thinking of "option to move freely", just think of it as options.

And while you don't care for vacations ( I get it ) just make sure sure you are not lumping "vacations" as the reason to go enterprise. Make sure you are measuring "options".

For example ( granted I am not the best at commenting on enterprise, so take what I say with grain of salt ), I got up at 10am today. No, that's not when I started working, but when I got out of bed.

I had the option to do that. Lazy? no, I had a reason to.. but not very many people working in Enterprise can do the same unless they are the boss and owner and even then some think this sets a bad example to others. Again I am not an enterprise expert, but unless you have put in years and marketing and have the cash flow to really have the "enterprise", would you do the same? Maybe. If I came in odd hours daily to the office, I would think my employees would be a bit disgruntled after a while. Again, your the boss though so I am just speaking out loud.

I took a 3 hour lunch with my wife and kids on a Tuesday, and went to watch a movie with them. I saw the Joker. Afterward, I smoked a cigar and cut down a tree. Later that night I did business stuff. I had the option to move my hours around.

A week before that, I worked on 2 projects I really personally wanted to work on. I didn't have to work on anything someone gave me, or someone needed help on, or that I felt were so pressing that my company really needed it and would cause issue if I didn't. I had the option to work on any project in any way I felt.

I might be painting the wrong picture as I am sure several in Enterprise can say they can do all this too.

But doing things "my way" and having the options to do so, just seems easier to come by on the "lifestyle" road.

But each person gets their own mileage.

 

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[Raoul Duke]

Can a lifestyle business transition into an enterprise business?

I saw it more like: Enterprise business transition to lifestyle business.

 

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[MTF]

Thanks for sharing. Just bought Company of One. Haven't heard of it or the first one previously. They look like they fit my business model pretty well. Company of One even mentions freelancing as the beginning stage. Probably a good read for anyone here following a similar path.

Thanks for rep transfer. The author of the first book, Elaine Pofeldt, writes a lot of interesting articles about solopreneurs and how they run highly profitable businesses in a lean way: Encores

The beautiful thing is, you can have multiple lifestyle businesses.

More than likely, you can't do that with an enterprise.

That's what I have been focusing on my entire life, several lifestyle businesses at once. It just fits me personally.

.

An enterprise business probably operates in a lot of areas so its owner won't get bored, but I like the increased safety of multiple lifestyle businesses. Over the long term it seems safer than one company as you're more diversified.

 

[Ravens_Shadow]

I work from home so I can spend more time with my kids and family. I’ve no interest in getting an office or hiring employees. I’ll grow my business using processes and technology (and by picking/finding a model that can allow me to scale without increasing headcount).

For me I have a team of 5 and we all work remotely with no plans to get an office any time soon. We're still kicking a$$, though it does increase headcount. And remember, you can still have a $1m dollar a year lifestyle business

Those are excellent points. I would add that based on him saying 'I need videos, or this, or that..' shows that he's less focused on adding value than he is on arbitrary requirements. It may be worth testing his logic around "How does requirement X produce value to your prospective customer?"

That's a good point. I think he's trying to promote niches with video seo or something. I have no clue what he's doing at this point

 

[Lex DeVille]

That's interesting.

I admire people who're capable of setting up a huge organization and following through for years to come despite only getting a small salary (if that). The prospect of launching something that you can't easily shut down terrifies me. You have to be very resilient or just love the process so much that the responsibilities don't bother you much. I would most certainly break down in a matter of months at most. I'm glad that there are people who enjoy it.

By the way, here are a couple of lesser-known books for those interested in a lifestyle business:

https://www.amazon.com/dp/B06Y4V1L9D/?tag=tff-amazonparser-20
https://www.amazon.com/dp/B078962RHQ/?tag=tff-amazonparser-20
https://www.amazon.com/dp/B0784VNMDT/?tag=tff-amazonparser-20

Also, a lifestyle business owner needs to be well-versed in the 80/20 principle: The 80/20 Principle Library

Thanks for sharing. Just bought Company of One. Haven't heard of it or the first one previously. They look like they fit my business model pretty well. Company of One even mentions freelancing as the beginning stage. Probably a good read for anyone here following a similar path.

 

[eliquid]

Plus, I have an issue with lifestyle businesses - it almost seems a rule that you must travel if you own such businesses. I don't want to travel, at least right now. I know that no one will make me do it, my point is that the two concepts seem too connected.

I know you prob already know this, but let me hammer in.

Everything is what you make it.

While I know not everyone here is the "college" type, it almost seems a rule that if you go to college.. you come out working the career you got a degree in and will land a nice cushy corporate job with the degree. The reality is, that doesn't happen and you make it what you want when you get out.

Same with the travel and lifestyle business.

I could go on with more examples, but I think you know them all.

I do not travel much. Maybe 1-3 times a year. However, when I go I stay for a month where I go. Maybe that is not unusual, but back in my day and people I know that work standard jobs, it's typically a week or less for them.

A week they had to work a year for to obtain ( so they had to work their job a year or more to get the week ), and they had to ask/beg for once they got it. Many times they have to "coordinate" their time off with others in the office so the department is not short staffed with more than 2 people off at the same time. And once they get off for that week, the Monday back they have a pile of work 2 weeks thick to now go through.. so what's the point of taking off a week if you come back to 2 weeks of work you have to sift through on Monday? Let's not even mention the phone calls and emails they still get while on their week off too. It happens. This happens in the enterprise... I know maybe not for all, but it does.

No thanks.

While lifestyle does have that "travel" and nomad feel stuck to it, for me it's more about having more options and alternatives. I don't travel much like I said, but the option to stay for a month when I do travel is the main focus. I have that option, most people don't. AND I can exercise that option 3x a year or more. To me it would seem odd to be off 3+ months a year in enterprise. That's just me.

I can't see myself doing that in an enterprise. At least not for many years and many dollars while the staff gets built up, the marketing and brand, SOP's, etc. In a lifestyle business, I can get to that point pretty damn quickly ( less than a year most times ).

But that's just me and my experience.

.

 

[Walter Hay]

I didn't start out to build my first business as a lifestyle one or an enterprise. I suppose that was because I started it in order to put food on the table after years of poor pay and negligble recognition for my achievements.

I operated that business for 14 years without any employees, but it had dramatically improved my lifestyle within the first year. By that I mean that I was able to buy my first new car ( a European model bought for cash) and travel within the country with my young family during school holiday times.

In that 14th year I was extremely busy handling sales, ordering raw materials, manufacturing the chemicals and packing them ready for pick up by a carrier. It was getting out of hand so I employed a friend to attend to sales.

That was a big mistake because he was a red hot salesman and brought in so much more business that I was working in my factory and office all day every day. Casual help in the factory eased my burden.

I know there will be critics who will say that I should have mapped out a plan, but I had formulated a product that I knew I could sell. I had to swiftly acquire raw chemicals and turn them into emulsions, make that first sale, deliver my product and get payment.

I had a deadline of 2 weeks to get that first sale, otherwise - hungry kids. Time out to prepare a plan was not an option.

As the business became more ordered I had more time on my hands. This led to much international travel as I exported my products to numerous countries. By now it was an enterprise, but I was able to enjoy the lifestyle because I took my family with me on business trips and we spent long periods visiting Pacific Islands, East Asian countries, The USA, the UK and the rest of Europe.

My factory was purpose built on our rural property, so my morning walk to work took me about 3 minutes. I installed a swimming pool next to the factory. One driver who made regular deliveries somehow managed to arrive most often when I was in the pool!

When I sold that business after 20 years I designed my next to be an enterprise. I set it up to market B2B the bespoke products that I imported mostly from Asia through the network of contacts that I had made when visiting as a chemical exporter.

I rapidly built it by establishing virtual branch offices across the country, having in mind to sell franchises. Those virtual branches in effect worked as pilot operations gaining a solid customer base that made selling the franchises very easy.

It all came to an end in 2010 when I was negotiating the sale of a national USA license. Emergency surgery caused me to sell the Australian and New Zealand network. Now I am retired. Well, sort of.

Walter

 

[Kak]

Great post

I prefer my enterprise type business and the reason is because …. I’m lazy

The enterprise is the only place where you have a system working for you, i have a brick and mortar business with 3 locations so far, i can be gone for a month and noone would notice, but i would stil get richer each day.

My job now is to find new locations and it’s great fun and no pressure.

In a lifstyle business i would be kinda slave to my work (no work no money).

Regards
Jonathan

Good post! It highlights the irony of a lot of arguments. That is that the lifestyle business actually demands more of YOU as the owner than the enterprise.

Don’t believe me?

Who handles pissed off customers? What about the happy ones? Who does your books? Your taxes? Your bank account BS? Your website? Who orders inventory? Who monitors inventory? Who forecasts sales? Who runs the ad accounts? Who photographs the shit? Who designs it? Who handles wholesale orders? Who finances large wholesale orders? Who checks a company’s creditworthiness? Who sells? Who manages social media?

I can do this all day…. The answer is you.

An enterprise begins to offload that stuff on someone else and because that person is dedicated to that position, they do it better. Your company becomes better and your customers like you better. Your company is stronger and more competitive because of this and can withstand the test of time better.

 

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[Walter Hay]

transitioning into building an Amazon brand/product using Ryan Moran's teachings and eventually selling that

Using his teachings regarding building a business and selling it is a good concept.

Using his teachings to build an Amazon brand/product could be a recipe for disaster.

Ryan Moran is typical of the many "gurus" that have been lucky enough to hit gold with their first amateurish foray into buying on Alibaba and selling on Amazon. Like so many others, he has gone on to become an expert on subjects that he knows very little about.

Building a business and selling it is a great way to generate legacy money, and has been extensively discussed on the Fastlane. His success at that is his claim to fame, and is well worth copying, but beware of his methods to source and import products.

His lack of understanding of the importing process is glaringly obvious in his description of the process. Following his "method" could cost newbies thousands of dollars on a single shipment.

His poor knowledge of sourcing on Alibaba makes it sound so easy: "we started contacting manufacturers on Alibaba.com. And Alibaba.com just went public. They’re all famous now. It’s a place where a bunch of manufacturers and suppliers get together and they bid for your business."

The price he paid for his yoga mats was at least twice what my book users would have paid if they followed my advice.

As for building a brand........ He didn't even brand or label his yoga mats. He shipped them direct to FBA from his supplier in China, knowing only that they had wrapped them in plastic. His brand building was entirely a result of his good and expensive advertising. They are now branded. How much better might his flagship enterprise have done if he had done proper branding and labeling from the start.

His marketing is great. His build and sell a business system is great. He just shouldn't also try to tell people how and where to source and how to import.

I don't know how much he charges, but I do know there is a thoroughly proven and highly successful Amazon course that has been operating for 15 years and costs peanuts. It does teach safe sourcing and how to import, because it includes a free copy of my book as one of the many modules.

Walter