To me, a lifestyle business doesn’t equate to running a tiny business as an alternative to having a job. A lifestyle business doesn’t have to be small at all, either in revenue or employees. The main requirement of a lifestyle business is just that it allows the entrepreneur/owner to live how he or she wants to live now, while running the company.
Startup vs. Lifestyle Business (a Short Comparison from a Guy Who’s Done Both)
There’s some interesting stuff in the comments too.