Lifestyle businesses are underrated in my opinion. They are also more achievable than a multi-million exit, especially if a lifestyle business is the planned goal. A lifestyle business does have particular challenges however. Specifically, moving it from a stage two to stage three business as described in Scale by Finkel and Hoffman:
A stage 1 business depends on the founder doing the work; a stage two business depends on specific people doing the work; a stage three business has enough systems and checks in place that people are interchangeable.
With a stage two business, a critical person leaving can threaten the entire business. This is a particular issue in the software field where people tend to job hop. Creating a stable lifestyle company that is more than a three or four person shop, thus requires a large and sustained effort to document all critical processes. Don’t underestimate this challenge.
https://www.amazon.com/Scale-Seven-Proven-Principles-Busines...
A stage 1 business depends on the founder doing the work; a stage two business depends on specific people doing the work; a stage three business has enough systems and checks in place that people are interchangeable.
With a stage two business, a critical person leaving can threaten the entire business. This is a particular issue in the software field where people tend to job hop. Creating a stable lifestyle company that is more than a three or four person shop, thus requires a large and sustained effort to document all critical processes. Don’t underestimate this challenge.