I have a one-person startup, and sure, it's more of a lifestyle business. But it's fully automated and provides passive income, so it's pretty awesome. (Not sure if that fits the definition of "lifestyle business".) I don't feel like I need a co-founder to get different perspectives; I have customers (first and foremost), friends, and plenty of internet communities where I can ask for advice and feedback (Stripe Atlas, Indie Hackers, HN, Reddit, etc.)
I wouldn't trade my autonomy and independence for anything, and I'm really glad that I don't need to chase after an exit with a 10 year deadline. The other important point is that this business should give me a really solid base for pursuing even bigger ideas in the future. Hopefully I will be able to keep this running in the background, and then go after some bigger ideas where I do actually want to raise VC funding and hire a team, because I won't need to take a salary.
That's a good point. It's definitely not as hands-off as buying shares in an index fund, or paying a property management company to manage a rental property.
I do have to be on call in case someone calls or opens a support ticket, or if there is a problem with the servers. But all the technical and billing stuff is automated. And if I want to have a long vacation then I make the conscious choice to neglect marketing and sales. But the next step would be to find some virtual assistants who can help with support and marketing.
I wouldn't trade my autonomy and independence for anything, and I'm really glad that I don't need to chase after an exit with a 10 year deadline. The other important point is that this business should give me a really solid base for pursuing even bigger ideas in the future. Hopefully I will be able to keep this running in the background, and then go after some bigger ideas where I do actually want to raise VC funding and hire a team, because I won't need to take a salary.