I generally use the term "Bootstrapped" as a shorthand for product/SAAS business started with limited capital and focusing on growth through their own operating profits.

At the same time though if a business is doing $3m profit a year between two people earning $1.5m a year each, calling it "Bootstrapped" is underplaying its success a little.

Yeah, I also say it with some distaste. This is the path I'm personally pursuing though, and I'd love to have some better terminology to describe it.

I wouldn't call it a "small business" either because, to me at least, that brings to mind a small consultancy and does nothing to communicate the "sell widely but stay small and focused" approach of the intentionally-small digital B2C business. (Mouthful there, huh?)

I think it's a really good path to follow and would love to do the same one day.

You might like this article if you haven't already seen it. It's been doing the rounds lately. https://medium.com/@dhh/reconsider-41adf356857f

As for a term... I can't think of one apart from "business". :P Heh.

edit: Just noticed someone else already commented with a link to that article! Ha!

How about the term "scale-sustainable", meaning the business is cash flow positive for most of its growth?

I usually just refer to my business by what it was (an office design magazine/website) as opposed to defining it by a category of technical jargon because the majority of people I interact with don't want to know.

Some people ask how it makes money (advertising) or if I have raised any money (no) or if I have employees (not yet), but I've never once needed to use the term "lifestyle business" or "small business".

Totally. It implies a semi-lazy work ethic (do just enough to support yourself+family, plus some left over for fun), and a lack of ambition.

In truth, you gotta bust your ass at a small shop to get your work out there and make $$ from it.