What do you call a startup that never grows up? A Peter Pan startup? A lifestyle business is one kind of Peter Pan startup?
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You could also say that a traditional small business is naturally self-regulating because of geographic constraints. Whereas most lifestyle businesses are regulated by TAM constraints based on where they are in the "long tail"
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You can choose to try and overcome these constraints in either case. E.g. Starbucks was constrained by queue size so opened more stores. Lifestyle businesses can make similar choices if it turns out the market they are in is growing very quickly.
End of conversation
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