To determine whether you have or you are going to create a lifestyle business or a growth business you will want to ask yourself the questions below. Before you start that process, I first want to stipulate that we are not recommending one type of business over the other, as this decision is one that you have to make on your own. This decision should be made before you start a business, as there is a belief at times by those starting a business that they will spend less time in their “Corporate” job and can still make the same money or more. The truth is that business is more unforgiving about time management than if you are working for someone else. Sometimes the business is going to demand more of you than you feel you bargained for when you started, so it is important to understand the type of business you are building as well as your business goals for the future.
Questions To Ask of Yourself
Is the most important thing about being an entrepreneur is that you are your own boss and you make your own hours
Is your business plan in your head?
Do you on a regular basis ensure you have time on a weekly basis to attend to family or personal matters during business hours?
Do you have multiple family members or friends on your payroll?
Do you have assets on your books that are used for personal consumption: cars, boats, cottages?
Does your business pay for your golf or other recreational memberships?
Does the business pay for parts of your family vacation?
Do you borrow money from the business on a periodic basis?
Have you made decisions in your business based on your personal situation?
Do you maximize your dividends at the end of every year?
Do you avoid trying to work overtime in your business? (More than 40 hours)?
Do you shut down the business while on vacation?
Do you feel having a budget for your business is too constraining?
If you answered Yes to a majority of these questions, chances are you are in a lifestyle business.
Lifestyle Business There is nothing wrong with developing a lifestyle business, but you do need to recognize that fact and not set unrealistic expectations for yourself. It usually starts with the goals you want for the business and why you created the business in the first place. If you are creating the business just for income for you and your family and it is something you can do and decide what time you spend in the business, then you are developing a lifestyle business for yourself.
Often in a lifestyle business, the business strategy is in the business owner’s head and at times they feel they are the only one that can execute it. In most cases they have not communicated this to their team, which can be a problem, as employees cannot buy in to something they are not aware. Because of this, employees usually do not perform to the expectations of the owner, as they are not aware of what their true role is in the business. In many cases do not have a job description and perform their job based on a task list. You have to understand that in some cases this could be an up and down struggle for you as in order to grow and generate more income, it will require you to focus more on the business and invest more time. Any business can flounder and affec