{"id":74000,"date":"2022-07-28T16:57:00","date_gmt":"2022-07-28T20:57:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=74000"},"modified":"2022-08-02T14:35:52","modified_gmt":"2022-08-02T18:35:52","slug":"lifestyle-startups","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/lifestyle-startups\/","title":{"rendered":"Lifestyle Startups: An Intro to the Basics"},"content":{"rendered":"\n<p>What&#8217;s a lifestyle startup? Is it the right kind of business for you?<\/p>\n\n\n\n<p>Entrepreneurs Ash Ali and Hasan Kubba explain what lifestyle startups are and why they&#8217;re usually self-funded. They offer a bit of insight into what it takes to make this type of business profitable. We include some pros and cons of small business ownership to help you know what kind of business is right for you.<\/p>\n\n\n\n<p>Continue reading to learn the basics of lifestyle startups.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-lifestyle-startups\">Lifestyle Startups<\/h2>\n\n\n\n<p>Lifestyle startups are local small businesses that provide founders with a sustainable income. Some have physical locations while others are online. Lifestyle startups generally provide services or products that target a relatively small customer base and are thus hard to scale. Examples include a specialty tea shop, a virtual dance academy, an auto repair shop, and a mobile dog washing business.&nbsp;<\/p>\n\n\n\n<p>Lifestyle startups are almost always self-funded and have limited appeal for external investors. Why? As Ali and Kubba explain, <strong>the aim in lifestyle startups is to turn a profit quickly<\/strong>, not dominate a whole industry as investors aim to do when they put their money behind a startup. While lifestyle startups <em>can<\/em> be highly lucrative and usually provide a comfortable life for their founders, profits are generally more modest. If you choose this <a href=\"https:\/\/www.shortform.com\/blog\/types-of-startups\/\">type of startup<\/a>, the authors say, you\u2019ll have to work extremely hard to achieve success, but you should be able to create a work schedule that affords you <em>some<\/em> degree of freedom once you get some traction.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>The Good and Bad of Small Business Ownership<\/strong><br><br>Despite the limited scope and scale of lifestyle startups, many entrepreneurs choose this option.&nbsp;Statistics show <a href=\"https:\/\/www.oberlo.com\/blog\/small-business-statistics\">there are 32.5 million small businesses in the US<\/a>, accounting for 99.9% of all US businesses. Small businesses form an integral part of the US economy, creating 1.5 million jobs annually and offering job opportunities as well as a plethora of <a href=\"https:\/\/www.shortform.com\/blog\/what-makes-your-product-unique\/\">unique products<\/a> and services.&nbsp;<br><br>Why are so many founders willing to take the risk of starting their own business? According to research, <a href=\"https:\/\/www.businessnewsdaily.com\/4652-entrepreneur-motivation-benefits.html\">freedom and passion\u2014not money\u2014are the main motivators<\/a>. Nearly two-thirds of small business owners say they started their businesses to be their own boss and to create something from the ground up. Only 8% say money was their motivator. Although lifestyle startups <em>can<\/em> provide owners with a sustainable income, as Ali and Kubba say, the <a href=\"https:\/\/www.payscale.com\/research\/US\/Job=Small_Business_Owner\/Salary\">average small business owner salary is a modest $62,000 per year<\/a>, and <a href=\"https:\/\/www.cnbc.com\/2020\/02\/28\/this-is-how-much-to-pay-yourself-as-a-business-owner.html\">many company founders take <em>no<\/em> salary in the first years of running their business<\/a>.<br><br>Also, as the authors note, the demands of small business ownership are extremely high. According to research, <a href=\"https:\/\/www.score.org\/blog\/how-hard-small-business-owners-work#:~:text=But%20how%20hard%20they%20work,than%2060%20hours%20a%20week\">small business owners work twice as much as regular employees<\/a>, with 39% working over 60 hours a week. Nevertheless, the appeal of this career option doesn\u2019t seem to be waning. Studies show that 66% of millennials have a career goal of starting their own business, and 70% of current small business owners say owning a business is the best job they\u2019ve ever had.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>What&#8217;s a lifestyle startup? Is it the right kind of business for you? Entrepreneurs Ash Ali and Hasan Kubba explain what lifestyle startups are and why they&#8217;re usually self-funded. They offer a bit of insight into what it takes to make this type of business profitable. We include some pros and cons of small business ownership to help you know what kind of business is right for you. Continue reading to learn the basics of lifestyle startups.<\/p>\n","protected":false},"author":9,"featured_media":74002,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,79],"tags":[701],"class_list":["post-74000","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-entrepreneurship","tag-the-unfair-advantage","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Lifestyle Startups: An Intro to the Basics - Shortform Books<\/title>\n<meta name=\"description\" content=\"Lifestyle startups are local small businesses that provide founders with a sustainable income. 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