What's a lifestyle business?

And why am I starting one?

Aug 26, 2024

Last week, I posted on LinkedIn about starting a lifestyle business, and I realized that not everyone will be familiar with that term, especially those from academic backgrounds. If you’ve never heard it before, the phrase might sound a bit like…um…maybe I’ll be selling smoothies & yoga mats or something? 😅

Not that there’s anything wrong with that…but it’s not what I have in mind!

So what is a lifestyle business?

There are various ways of defining it, but the one that matches what I have in mind is this one:

A lifestyle business is a type of business that is designed to support the owner’s preferred lifestyle rather than solely focusing on maximizing profits or achieving high levels of growth. Owners of lifestyle businesses prioritize personal goals, such as flexibility, work-life balance, and the pursuit of their passions, over the traditional business objective of maximizing profits. (source)

Hey…what’s wrong with profit?

Don’t get me wrong, I’m all for companies focusing on profit. Anyone with a pension or any other investment should want the companies they invest in to be profitable. The question is: do I, personally, want to be the builder of such a company. And the answer is: no.

In recent years, many of my friends and colleagues from academia started quantum tech startups. Such startups are typically backed by venture capital (VC). This means that people with money gave that money to a VC who then invested that money in a startup. At some point, say after 5 to 10 years, those investors will want the money they invested—plus a handsome profit—to come back to them. That’s the name of the game, and I think it’s great these mechanisms exist. In many cases, it’s the only way to build the kinds of technology and products that these companies want to build.

But this puts a great deal of pressure on the company and the founders. I have the absolute utmost respect and admiration for my friends and colleagues who went down this path. It’s just not for me (at least not now).

Don’t people look down on lifestyle businesses?

Some people do. In VC circles, the term lifestyle business is sometimes used pejoratively, suggesting that such businesses lack ambition or potential. This totally makes sense if the thing you care about is a return on your investment. I would not be investing money in someone else’s lifestyle business either. But lifestyle businesses can be ambitious and have potential in their own way. They can do great work and bring value and satisfaction to their clients. And they can support a sustainable and fulfilling career for their owners. That’s what I’m after!

What kind of lifestyle are you trying to support?

According to the definition above, one of the goals of a lifestyle business is that it supports the owner’s preferred lifestyle. This brings to mind a business that makes enough money, and leaves its owner with enough time, that they can spend their days playing golf or sailing a yacht or something. That’s not exactly what I’m interested in though.

When I left academia, I left for various reasons. Those reasons hold even more true today. But even though I don’t want to return to academia, I do want to reclaim some of the aspects I loved about it, like autonomy and intellectual freedom. I want control over my schedule and the freedom to choose the people I work with. I want the ability to take long lunches, and the opportunity to engage in deep, intellectual discussions with colleagues. But at the same time, I want the things I discovered I loved while in industry, like speed, execution, big strategic thinking, and connection with the real world.

I actually really like work…a lot more than entertainment. I’m just picky about the nature of that work. The lifestyle that I want to support is the one that lets me work in a way that is right for me, and on things that align with my passions and my values.

What’s up with your funny company name?

I thought a lot about what to call the company. I think the name should reflect what a company does, and I couldn’t settle on doing just one thing. I want to try all of the things and figure out which ones work and which ones don’t. So I called the company1 Aggie Branczyk Enterprises (ABE). It’s the best description of what the company does…and it makes me laugh.

What will the company do?

ABE will consist of different divisions, one for each venture, each with its own service/product, business model, and brand identity. I will also leave room for a division called ABE Research, in which I will do foundational research driven by my own curiosity. Like its counterparts in much larger companies such as IBM and GE, the Research division will not directly generate revenue, but will be supported financially by its parent company.

This sounds like a lot for one person to take on, but my goal is to structure the business in a way that allows me to work at a sustainable pace. In this Substack, I’ll share how I plan to do that, as well as what I learn along the way as I explore different ventures and business models. I’ll also talk about why I wanted to think of this as a company rather than to work as a freelancer that takes on various projects (which would have been a lot easier!).

Stick around

So, here we are. I’m diving into this journey with excitement and realism, aiming to build something meaningful on my own terms. If you’re interested in creating a life and work that feels right for you, or if you’re just curious to see how this experiment unfolds, stick around. I’ll be glad that you’re here for the ride.