LIFESTYLE V PERFORMANCE BUSINESS

Whether you are a founder, senior manager, or employee in a company, you are generally part of a team involved in either a Lifestyle or Performance Business. This does not typically apply to local or central government entities, charities, or Community Interest Companies (CICs).

There is no definitive right or wrong label for these types of businesses or their levels of success. The decision lies with the founders and shareholders, but it is important to recognize and leverage the distinct characteristics of each. So, what are the common traits of these two business types?

Lifestyle Business

• 1-15 headcount
• Founder funder and active
• Funded typically via founder, friends and family on a debt or minor external equity basis
• Say No to deals they do not want/ like- true to vision and beliefs
• Niche
• No real growth aspirations yet make sufficient profits to fund the overheads and the founder/s salary and lifestyle
• Still needs to be a little entrepreneurial

Performance Business

• 15-300 headcount
• Founder may leave during growth journey or move to Chair / NED role and bring in CEO ( For different stages)
• Strong management team CEO/ CFO/ COO/ CIO/ CTO/ CRO/CMO
• Growth via Organic and M&A
• External finance ( typically PE/ VC backed) with the founders/ management retaining 10-60% of the equity but with strong controls from investors ( who may also appoint a Non Exec Chair)
• Typically a strong vision and plan with clear/ aggressive KPIs to generate significant profits and returns for investors

Ultimately, there is no definitive way to build a business; it depends on the founders and their vision. Prioritize customer quality, and loyalty, trust, and profit will follow. The environment shapes company culture and performance. Whether it’s a lifestyle or performance business, a clear vision, quality control, and a customer-focused approach are essential. Passion for your work is crucial—See It, Feel It, Hear It!