The most visible stories on HN seem to be about startups that are looking for an exit at some point. But I know that many people on HN are quite happily building businesses they intend to run for the foreseeable future. What is your long-term goal?
I'd love to read some reasoning behind people's choices, especially if you are choosing the third option.
8 years later the company I started still exists (http://exocortex.com, software plugins and consulting) and has hundreds of specialty clients and pays real salaries and has been profitable for years, but it isn't headed for an exit itself. So it is firmly a lifestyle business.
That said, we started something like a "start-up" within this lifestyle business that has more growth potential (read: exit potential) but also more risk (http://clara.io, a web-based 3D editor/rendering/publishing tool.) More examples of what can be done with Clara.io can be found on our Facebook page: https://www.facebook.com/Exocortex
I guess once you've got the lifestyle business established, you can then go and look for larger opportunities.