My friend Josh Patrick recently blogged about the concept of the “micro-business.” This is another term for a “lifestyle business.” Josh defines a micro business as “one that employs less than five employees and is not designed for transfer. It is designed to benefit the owner and often is a second or third career. People who start micro-businesses are providing a product or service that requires few people and is simpler to run than larger businesses.” Read his blog here.
I believe there are the subtle but important differences between the two:
- A lifestyle business often represents the failure of the owner to grow the business and create lasting value. A micro-business is a choice.
- Owners of lifestyle businesses worry about their exits – with good reason! Owners of micro-businesses are content to fold the business when the time is right for them.
- Owners of lifestyle businesses are often uncomfortable and stressed. Micro-busineess owners are comfortable with themselves and what they’re doing.
- Lifestyle businesses often reflect the stress of their owners, lurching between underfunded strategic initiatives and apathy. Micro-businesses reflect the calmness of their owners and are comfortable for employees and customers.
Does this sound familiar? Which is your business?