There are 3 types of lifestyle businesses you can create online as a lifestyle business entrepreneur

1. A faceless business model
   
2. A personal brand business model
   
3. An expandable business model
   

The faceless business model

The faceless business model is a business model where the founder runs the lifestyle business independent of their name. In fact when you go to a website you operates using this model, you will have to search hard to find their information. The user’s goal is normally to dissipate as much information to their viewers and not necessarily to promote themselves. They often use newspaper style designs to promote information. An example of a business that operates using this model is http://moneybulldog.co.uk/business/ you will notice the founder never promotes himself but the content.

Businesses that operate using the faceless business model are easier to sell online. Sites like http://appraisals.dealmysite.com can quickly appraise the value of the business. Also there are many sites that you can list your business for sale. Look at this article for the top sites to post your lifestyle business for sale.

Also businesses without a face can more readily be sold to bigger companies. For instance a media company might buy a smaller finance blog because of the traffic. The transition will be seamless for them as users visit for the content and not necessarily the founder.

The personal brand business model

The personal brand business model is largely based on the personality of the founder. If you build a business whose brand is based on you as the founder then selling it becomes very tricky. There are more factors to consider when selling your lifestyle business when you are the brand. Some of these factors are:

• Lifestyle business management
  
• Lifestyle business structure
  
• Size of lifestyle business and barriers to entry
  
• Business systems in place
  
• Financial strength
  
• Operations
  
• Income projections (for at least the next 3 years)
  
• Business plan
  
• Environmental factors
  

Since the visitors of a personal brand lifestyle business visit to interact with the personality behind the scene, selling could mean losing thousands of followers. Due to this delicate balance, care as to be taken in the transition. There has to be systems in place, recurring forms of revenue and the buyer will need to retain rights to use your name. An example of a personal brand business model is http://www.marieforleo.com/

An expandable business model

In my opinion this is the best form of lifestyle business. An expandable business model is one that can transition from online to offline and still remain valuable. It is by nature scalable and has the potential to become worth billions of dollars. It could be based on a new found technology or a well designed marketing plan. The products or services are designed with scalability and market penetration in mind. Every business decision is made knowing that someday becoming a multinational is part of the plan.

Now that we know the three types of lifestyle businesses that are often created online, let us discuss some of the developments in marketing your lifestyle business.

It’s amazing how far things have come; it used to be if you had a lifestyle business your only hope at retirement was to sell off your assets if you had any. Now the internet has made possible to have existing markets for your lifestyle business. So now the main things to know if you ever choose to sell someday are what make up your assets.

There are 2 types of assets a business can build:

1. Tangible assets
   
2. Intangible assets
   

Tangible assets: are assets that have a physical form and have an explicit value. They could be held in the short term or long term. Some tangible assets are cash, prepaid expenses, investments, property and equipment. Tangible asset is another way to build assets in your business. As part of your business strategy you could choose to invest in other businesses, real estate, revenue producing property and equipment, etc. The possibilities are endless if you just learn to think beyond the daily grind.

Intangible assets: are assets that do not have a physical form and estimating a value for them is very difficult. Intangible assets include things like patents, trademarks, copyright, intellectual property and brands.

Brand: anyone can create a product but creating a brand around your product takes time and stamina. A brand is the foundation on which all your other marketing lies. Creating a consistent experience for your audience is part of what makes them loyal to you. A brand is strongly linked to human emotions and until you are able to invoke emotions in your audience you have not created a brand. The collection of systems you have in place is what creates an experience for the customer. It is okay to have a personal brand but if you intend to sell, having a brand that does not revolve around you is best.

Ways to value your brand:

Market Approach: is based on what businesses with similar brands have sold for.

Cost Approach: this is an estimate based on how much it will cost to recreate the brand.

Income Approach: this estimates the future income you could earn from the brand. This amount is presented on the balance sheet at net present value i.e. what it is worth today?

Valuing intangible assets is harder than valuing tangible assets. However the sum total of both is important to know the total value of your lifestyle business.

Do you have a lifestyle business? Have you ever wondered what it is worth? Leave comments below with ways you currently value your business.