One for the entrepreneurs: Lifestyle Business or Scaleable Company?

[campbell]

Are you running a Lifestyle Business or a Scaleable Company? And what are you aiming at long-term? A key client and occasional unofficial mentor recently asked me this thought-provoking question. Wondered what other people's focus was.

Some insights to help you decide in this article:

https://fundingsage.com/difference-life ... e-company/

[Ferg]

What was your answer?

[Super7]

I’m definitely a lifestyle company, however essentially, I just buy stuff and sell it or hire it out, so that’s scalable.
The reason I don’t scale up isn’t as simple as the article suggests. More money is nice, but so is contentment. Less free time and more risk isn’t.

[campbell]

Unprintable.

Because he'd inferred previously that mine was a "only a lifestyle" business. Which I assumed meant playing at it. Yet I'm the primary earner, I started from scratch with nil capital and no handouts, and my goal was 20 years' lifespan minimum. We're 5 years in now and no regrets.

So when this came up again, I researched the term. That article was helpful. All in all, I know Rathmhor has the capability to scale (it already has...then I shrank it back, by design - is that a "lifestyle" choice? - maybe!). So it's not quite about whether the business DOES scale. It's about the founders' / owners' choice of whether it SHOULD scale.

And I like that power of choice. It's one reason I started the business. And it's now creating a dilemma related to another major project opportunity for 2018-20. Which is why the subject came up with him in the first place

Really interested in other people's views and stories from the businesses they have started from scratch.

[Stu160]

Well, it was different a few years ago , but now lifestyle for sure, been there done , done that , not worth it. Unfortunately, it turns out, my business is far to specialised.

Do what you enjoy. ☺

I am sure you are are more than happy with your first 5 years Campbell. ....

Stu

[campbell]

You've summed it up well, Stu.

[111Robin]

I've had several start-up ideas but ended up binning them after talking to my accountant who appears to enjoy being a doom merchant, probably because he doesn't see them generating much income for himself. I'm fed up with people rubbishing my ideas that would definitely be more lifestyle than scaleable businesses. In my situation with no dependants I just want to do something I enjoy, not bothered about making huge sums of money. Perhaps I just need to get on with it and not listen to too many experts. I know they mean well and I do appreciate their professional wisdom however I'll get nowhere if I carry on like this.

[campbell]

Accountants are important professional advisers, but not all are skilled or intuitive "business ideas people".

So you should certainly listen to an accountant from a projections and financing / funding point of view. But you'd do well to find a business mentor or other sounding board for your ideas.

What sector(s) are they in?

(I simply told my accountant I was starting Rathmhor. He helped with bank account setup, initial tax advice, and regulatory stuff around operating a limited company ... but I did all the rest )

[111Robin]

Yes I always value his advice however I feel that he doesn't seem to grasp that I'm not intending to set the world on fire, I want to be contented and make a small profit that's all. My ideas all involve classic cars in one way or another. I know he doesn't have any specific business knowledge in that sphere so he probably feels safer being over cautious with his opinions. I tried Business Gateway but there was no offer to sit down with a consultant face to face, only a list of seminars to attend. Useful though they may be, I just want to run my ideas past someone with business sense at least to begin with.

[Dominic]

Nice wee article, thanks for sharing Campbell.

This is something that I have been giving great thought to lately as I find myself with a lifestyle business, which continues to expand - increasing the pressure on me.

It's also a process that I have helped quite a few of my clients through. It is easy to end up with a job creation scheme, where you have higher turnover, staff to manage, a larger business to manage, but no more income for yourself.

[Dominic]

Yes I always value his advice however I feel that he doesn't seem to grasp that I'm not intending to set the world on fire, I want to be contented and make a small profit that's all. My ideas all involve classic cars in one way or another. I know he doesn't have any specific business knowledge in that sphere so he probably feels safer being over cautious with his opinions. I tried Business Gateway but there was no offer to sit down with a consultant face to face, only a list of seminars to attend. Useful though they may be, I just want to run my ideas past someone with business sense at least to begin with.

Always happy to have a blether Robin if you wish an alternative opinion

[campbell]

Yes I always value his advice however I feel that he doesn't seem to grasp that I'm not intending to set the world on fire, I want to be contented and make a small profit that's all. My ideas all involve classic cars in one way or another. I know he doesn't have any specific business knowledge in that sphere so he probably feels safer being over cautious with his opinions. I tried Business Gateway but there was no offer to sit down with a consultant face to face, only a list of seminars to attend. Useful though they may be, I just want to run my ideas past someone with business sense at least to begin with.

Always happy to have a blether Robin if you wish an alternative opinion

And I can vouch for Dom's listening skills and insights. NOT your typical accountant

[111Robin]

Yes I always value his advice however I feel that he doesn't seem to grasp that I'm not intending to set the world on fire, I want to be contented and make a small profit that's all. My ideas all involve classic cars in one way or another. I know he doesn't have any specific business knowledge in that sphere so he probably feels safer being over cautious with his opinions. I tried Business Gateway but there was no offer to sit down with a consultant face to face, only a list of seminars to attend. Useful though they may be, I just want to run my ideas past someone with business sense at least to begin with.

Always happy to have a blether Robin if you wish an alternative opinion

Thanks Dom, much appreciated.

[greyrigg]

I think we are a strange hybrid, typical politician's non statement, I know.

We are at the stage of succession planning, how will the company continue? Must it be sold, could we still maintain an interest with new management and equity funding? It really does need new and enthusiastic management that has not been jaded by the knocks and blows of time!

Whether you are a lifestyle company or not is irrelevant. It is up to you how you balance your life. at all times you must remember you are only here once and it is important you enjoy it, if you get your kicks from building up a large company then that is fair enough.

Don't start me on business gateway. £'s in vs £'s out does not look good. too many seminars and free lunches, not enough practical advice and mentoring but I am working on it.

Malcolm

[BigD]

From what I’ve seen of the local business gateway it’s a waste of time. Too many public servants working there who have never run a business.