Angel investors make for a great barometer for the potential success or failure of a so-called lifestyle business, with their option not to invest in a lifestyle business not necessarily signalling their lack of belief in it. In fact, if you watch popular investment reality shows such as Dragons’ Den, Shark Tank, etc, you will often hear the prospective angel investors saying the entrepreneur seeking investment might very well have a good going, but they don’t see it as something scalable enough for them to get involved with.
There are various ways to boost your chances of ensuring your lifestyle business succeeds. You have got to be willing to take your life in your own hands and make a big bet on yourself. Otherwise, like most products or services being launched these days, your lifestyle business will fade into the background, unable to stand out from the crowd. How many new online casino ventures demonstrate some serious staying power, for example? You’ll undoubtedly be entering into a competitive market, because pretty much all markets are competitive these days…
Here are a few pointers to help you get started:
1. Define and Focus Your End Goal
A great way to make your lifestyle business succeed is by narrowing your focus on a single problem to solve. If you are a snowboard instructor, your end goal may be to teach people how to snowboard, or maybe it is to teach people how to ride without injuring themselves. As an investor, this can be just as critical as it is for you to get the right target market, and as the product or service provider, you have got to make sure you target the right person to provide your services.
Don’t force the ideal target demographic to fit into your problem domain just to make things more interesting and trendy. Most people just want to solve a problem they have, or get to a new level in their skill. Your competitors will usually be providing solutions to problems that are well-known by the masses, so don’t waste your time learning how to surf.
In any case, know where your product or service is going to be of greatest benefit to the general public. With your end goal in mind, you can then work out what makes sense from your side as the business owner. Try to avoid any form of forced venture-capitalisation, and by working through your customers and hearing their needs, you can work out the key pain points or problems you are solving. It might not be fun, but having a strong business plan will help you stand out in the crowd.
2. Generate Product Market Demand
This one should be simple, but even the smallest mistake here can lead to you having a bad experience with a lot of customers. You have to know who your customers are. There are literally hundreds of millions of people in the world who are like you, who have a need for your particular solution to a problem they will naturally also have.