Definition - What does Lifestyle Business mean?
A lifestyle business is created by the owner for the specific purpose of providing cash flow to pursue outside interests. With lifestyle businesses, the owner has already created sufficient wealth in a different company which allows him/her to focus on another business that is more aligned with other life pursuits.
Lifestyle businesses are becoming more common among individuals seeking a better work/life balance.
Divestopedia explains Lifestyle Business
A lifestyle business has no commercial goodwill. The only goodwill in a lifestyle business is personal and this makes the company difficult to sell. The company is designed, on purpose, with limited scalability and potential for growth in order to keep it simple to manage so it matches up with the owner's personal objectives.
Lifestyle businesses can be sold, but they require adequate processes, systems and a trained management team to make them saleable.