By Mark Henricks

A successful lifestyle business can improve your existence dramatically, but it's no gimme. Experts in advising wannabe lifestyle entrepreneurs say to look carefully into these requirements before taking the leap.

1) Pick the right business. First, evaluate your abilities and experience and carefully match them to potential businesses, says Arlene S. Hirsch, a Chicago career transition consultant and author of "Love Your Work and Success Will Follow" (Wiley, 1996). Then pick the one that best fits your lifestyle needs. "Make sure you can embrace the lifestyle," she stresses. "Some people can't be at home, for instance. It's not good for them. So they need an office outside the home."

2) Finance it. Personal savings finance most lifestyle startups because they lack the assets and cash flow demanded by traditional lenders such as banks, says Don Bradley executive director of the Small Business Advancement National Center. So look first for money in your own pockets. If those are bare, consider requesting a loan from a friend or relative. Caveat: Be cautious about diverting your retirement funds to back a lifestyle venture, Bradley warns. If things don't work out, you may have to work past your planned retirement.

3) Get your family's okay. Your spouse may not have the same risk tolerance as you, Hirsch reminds. If you expect to earn a lot less or work a lot more while you're getting underway, you've got to have buy-in from family members to make it work.

4) Do a gut-check to make sure you've got the energy and commitment.  Underestimating the time required to run a small business is one common error. So is failing to appreciate the added hassles of taxes, payroll, insurance and other red tape. It may take significant personal commitment to carry through. "A lot of them don't have the fire in their belly," says Bradley. "They need to."

Mark Henricks is an Austin, Texas, lifestyle entrepreneur and the author of Not Just A Living: Creating A Business that Gives You A Life.
Copyright of Mark Henricks. Reprinted with permission.