Show Notes for Episode #8:
Hot Topic #1: Exactly what is a Lifestyle Business?
Some will use the word “Start-Up” to describe such a business, but they’re wrong because there’s a difference, one that I’ve only grasped myself over the past few years.
Neil Blumenthal, co-founder of Warby Parker describes a startup as a company “working to solve a problem where the solution is not obvious and success is not guaranteed.”
Paul Graham, co-founder of the Y-Combinator seed capital firm describes a startup as a company designed to scale very quickly. It’s this primary focus on growth which differentiates startups from small businesses or lifestyle businesses.
For many start-ups, there are investors, employees, a more expansive business plan and structure, plus a clear exit strategy where this startup is ultimately acquired or goes public and investors reap big returns on their investment. Watch any episode of Shark Tank and you’ll see the extra-mile hustle, precision, and financial proof required for a startup success.
But a lifestyle business is different — there are no real assets to be sold, but a steady stream of freelance income that’s desired.
Get clear on what’s motivating you to pursue this Retirepreneur path. Get clear on how much time you’d like to invest each week, how much money you’d like invest, how much income you’d like to earn… and how much time you’d like to protect to enjoy leisure, travel, time with the grandkids, etc. When you’re in your 60’s, working long hours over a sustained period isn’t advised.
Alex Blumberg started as non-profit journalist, weaving amazing stories for the award-winning radio program and podcast, This American Life on NPR.
Blumberg’s mastery of storytelling is second to none, but when he made the leap to CEO of his own company, Gimlet Media, and needed to flip that skill inward to share his own story, things didn’t go so well at first.
As Blumberg hit the pavement to raise money to launch Gimlet Media, he was introduced to Chris Sacca – a wildly successful venture capitalist in Southern California. This was Blumberg’s golden pitch moment, yet he fumbled through the Gimlet story.
I’m happy to report a happy ending for this story… Six months later, Blumberg and his partner, Matt Lieber, raised $1.5 million. Gimlet’s later series A round garnered $5 million more.
If you had just two minutes with a potential client, could you share a story that’s so compelling, they’d want to know more? Is your story strong enough to win you more time to ultimately close the deal? That’s something you can work on right now.
Sherold is a master coach, mindset expert and 2X six-figure plus entrepreneur. She helps entrepreneurs build consistent income by doing work they’re passionate about. Sherold also has a powerful tagline for her business…
“Fear is your rocket fuel. Freedom is your reward.”
More about Sherold’s consulting practice at sheroldbarr.com
Links for a deeper dive:
Do investment companies invest in lifestyle businesses?
From This Week in Business with Jason Calacanis
How to Recognize the Voice of Fear (and not let it drive your decisions)
From Sherold Barr’s blog