What is digital lifestyle and lifestyle entrepreneurship?

To put it simply, digital lifestyle entrepreneurship combines both digital lifestyle and lifestyle entrepreneurship, and refers to entrepreneurs who make their living online. As different authors suggest, the key features of this type of business are internet access, portability and building a career around desired life (style).

Concept of digital lifestyle

The term digital lifestyle describes a lifestyle that is shaped by technological progress where digital technologies become irreplaceable part of life. Historically, the transition from cell phone to smartphone and from notebook to tablet PC marks the beginning of the digital lifestyle.

Digital lifestyle means that people can easily connect around the world by using internet and digital technologies, work from any location or create smart homes. Digital lifestyle is perceived positively both from individual and business level as it improves cooperation, communication and can help to reduce expenses.

There are three interconnected spheres, which is shown below, that defines living a digital lifestyle – Digital lifestyles, Mobile working, and Connected home.

Knowledge seekers – people using the internet for the purpose of gaining knowledge, getting information or educating themselves. Social networking is not the aim of using digital technologies, on the other hand, it helps to connect with people of common interest.

Influencers – people using the internet frequently, posting on social media, blogging regularly, having loud voice online, shopping online. It is common that influencers are younger generation.

Networkers – people using the internet to establish and maintain relationships. Internet for networkers is the main tool of social communication.

Communicators – people using the internet for the purpose of communication (emails, mobile devices, social media). They interact face to face as often as online.

Aspirers – people using the internet to be more active online. They mostly connect from home but want to be more active in the mobile space.

Functionals – people using the internet for the purpose of functionality. The internet is perceived as a tool with useful functions – emails, latest news or sports, weather forecasts or online shopping. Social networking is not the main interest. It is common that functionals are older generation and have been using the Internet for a long time.

Digital lifestyle research conducted by Buhlebenkosi 4.0 Consulting company in 2017, revealed that there is growing demand for the use of digital channels, like mobile, social media and collaboration platforms to become more competitive in business sector. As people become more tech savvy, capable of finding, evaluating products and services or creating content, it is crucial that businesses would adapt quickly to the digital revolution otherwise they will be left behind.

What is Mobile working?

The term of mobile working refers to work arrangements that allow employees to freely conduct work at any location away from the main employer’s workplace, with full access to the information, people, and systems they need in order to complete their work

In other words, mobile working describes work which requires internet access and is not tied to a physical location. Examples of such places – homes, offices, hotels, coffee shops, bookshops, libraries etc. Digital technologies like cloud-based tools, video conferencing and other tools, allows to communicate and collaborate more effectively and therefore to work from any location. This way of working can offer increased productivity, saved office space and push towards successful digital transformation.

What is Connected home?

Connected home or smart-home is a system that connects and controls all electrical home appliances, giving a sense of comfort, convenience and security. Those digital devices are connected to each other through the internet. Smart home technology allows to control and monitor connected home devices from smart home apps, smartphones, or other networked devices.

The connected home system evaluates the received information from motion, image, temperature, humidity, and other sensors, then various controllers process the information and distributes the commands in the power grid. These commands are executed by household appliances: audio, video equipment, shutter gate motors, heating appliances, etc.

Concept of lifestyle entrepreneurship

The most common definition of entrepreneurship used by the European Commission refers to the individual’s ability to turn ideas into action. It includes creativity, innovation, risk taking, ability to plan and manage projects to achieve objectives.

Lifestyle entrepreneur refers to an individual who is creating business driven by interests and passion while sustaining his life goals. The source of inspiration can become hobbies, habits, or lifestyles. The purpose of lifestyle entrepreneur is to improve their life instead of making profit. Though, this type of business does not exclude profit, it operates differently. Lifestyle entrepreneurs are more focused on their lifestyle choice. For this reason, they design businesses to accommodate their lifestyle so it does not depend solely on making money.

There can be different reasons why people choose to become a lifestyle entrepreneur – some of them want to spend more quality time with their families, others seek for freedom and flexibility or they desire to travel and live from any place in the world.

Mindset of entrepreneur vs lifestyle entrepreneur

The table below explains the main differences between entrepreneurs and lifestyle entrepreneurs.

ENTREPRENEUR	t		LIFESTYLE ENTREPRENEUR
Seeks investors who care about a return on their investment.		Does not seek investors. The business could start with almost no initial cost.
An exit strategy is a way to get out of the business.		No exit strategy needed as they want to create something, they are passionate about supporting the life they want to live.
Seeks for profit, wants to grow profits as fast as possible.			Motivated by quality of life rather than growth of profit.
Main focus on business goals.			Main focus on life goals.
Focus on managing organizational structures.			Lifestyle entrepreneurs may stay involved at the transactional level. They can choose to stay involved with customers, connecting, and getting to know them personally.

Digital lifestyle entrepreneurship

Digital lifestyle entrepreneurship means that internet and other digital tools make it easier to turn a hobby or lifestyle into a professional activity which can become the source of income and living. Digital tools contribute to lifestyle entrepreneurship in a way of flexibility, lower expenditure, mobility, or personal and professional fulfilment.

Different sources highlight the benefits of digital lifestyle entrepreneurship:

Financial freedom,
Lifestyle freedom,
Geographical and time freedom.

The retailer (merchant, advertiser, brand),
The network (contains offers for the affiliate to choose from),
The affiliate marketer (publisher),
The costumer.

To put it simply, it’s a way of advertising (recommending) retailer’s products or services by affiliate marketer in order to earn commission. Online retailer pays commission when users buy products or services by using affiliate’s referral link.

Affiliate marketing works on two basis – CPA and CPL. CPA cost-per-acquisition and CPL cost-per-lead. It means that affiliate marketer earns money when someone takes an action (buys products or services, signs for trial and etc.). First of all, publisher should thoughtfully choose advertising products or services which would be relevant for his/her audience and add referral link in website, blog that costumers would purchase when clicking on it.

This type of marketing uses regular advertising tools as well, it can overlap with such methods as organic search engine optimization (SEO), aid search engine marketing (PPC – Pay Per Click), e-mail marketing, content marketing, and (in some sense) display advertising

Freelancing is commonly associated with the digital lifestyle entrepreneurship. The other term for freelancer is independent contractor and usually refers to a self-employed person who is not tied to one employer. In general, freelancers offer services based on their obtained skills. They must be able to know both – how to provide the services and how to sell them to others.

The most popular freelancing jobs include:

Digital marketing

Digital marketers apply such marketing strategies as email, content, social media as well as regular marketing strategies.

Design

Freelancers can work as graphic designers, illustrators, animators, video editors etc. with individual clients or in web development, marketing etc.

Web Development

Freelancers can work as a Web developers, WordPress developers, Database specialists, App developers etc.

Writing

Freelancers can work as a Bloggers, Freelance Writers, Copywriters, Freelance Journalists, Transcriptionists, Screenplay Writers, etc.

Gig Economy Jobs

By using the Apps on smartphones or internet, freelancers can work for example as Uber or Bolt drivers, delivering food or other goods, walking and taking care of pets, etc.

In order to manage cash flow, it is advisable that freelancers would balance their client load between regular ongoing contracts and one-time projects so their income wouldn’t be dependent on any client.

Selling online is for those entrepreneurs who associate their lifestyle with e-Commerce. E-Commerce defines the activity of electronically buying or selling of products on online services or over the Internet. Online businesses use e-commerce platforms for the purpose of managing their website, marketing, sales, operations, etc. If a lifestyle entrepreneur decides to start an online business it is important to select the right tool. To decide which software application is the most suitable for online stores, lifestyle entrepreneur should take into consideration their goals, resources and preferences.

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