Howdy! In today’s blog post, I want to discuss the difference between lifestyle and growth businesses. Both operate on fundamentally different philosophies, let me tell you why 👇

Lifestyle businesses often target a modest growth rate—likely around 3%, or just enough to keep up with inflation (though that is a challenge these days). These businesses can be built as sole proprietorships or small teams, allowing you to make a decent living while maintaining control and flexibility. They’re great for individuals seeking stability and work-life balance.

Growth-focused businesses often aim for double- or even triple-digit growth year-over-year. With growth-focused businesses, you have the potential to create a machine that operates independently of you, generates equity value, and makes a lasting impact on your industry.

The Trade-Off: Building a growth-focused business asks a lot of you. You must reinvest profits, hire many people, and weather some tough years. The stakes are higher because the risks are bigger.

I recognized that while selling my time could provide a comfortable income, I wanted to build a growth-focused business—and I wanted to bootstrap it. There have been many painful periods, but I can confidently say that the many rewards have made the risks worthwhile.

Here are some lessons I’ve learned from starting a growth-focused business:

1. Cash is king: Without having a solid handle on cash flow, even the most well-thought-out growth plans can collapse.

2. Patience is key: Believe in your product or service; building a growth-focused business takes time.

3. Take calculated risks: Growth requires risk, but smart risks build sustainable success.

Important Question to Ask Yourself This Week:

What does success look like for you: financial freedom, industry impact, work-life balance, or something else entirely?