How do you think startups make money? We're talking about two different things -- one is the value the business provides to their customers which is selling goods and services, and the other is the value the business provides to the founders and investors which is profit.
Whether or not something is a lifestyle business is a shuffling around of who owns the business and gets the profit, not at all about how the business operates except as second order effects.
Whether or not something is a lifestyle business is a shuffling around of who owns the business and gets the profit, not at all about how the business operates except as second order effects.