Independent business: https://en.wikipedia.org/wiki/Independent_business
MicroISV: http://www.singlefounder.com/2009/11/17/the-day-the-microisv...
Creating an extreme outlier business is rarely in the founder's interest since the most common outcome of such a business is failure. VCs's can afford to average out the risks by investing in hundreds of start-ups, but each founder only has one life.
FWIW, this is the first time I've ever heard anybody suggest "lifestyle business" is an inherently pejorative term. I don't consider it a pejorative in any way, and I don't know anybody offhand who does. That said, I've heard tell of VC's and other people who are deeply invested (no pun intended) in the "shoot for the moon" approach being somewhat dismissive of lifestyle businesses, and perhaps couching their discussion of them in pejorative terms... I just haven't known anybody who holds the phrase to be intrinsically pejorative.
I have been thinking about an alternative and I would like to suggest the term "founder-focused" instead of "lifestyle".
GitHub isn't a "lifestyle business" (even before they took A16Z money)
This is an off topic rant, but can we please come up with a less pejorative term than "lifestyle business" to describe non-"shoot for the moon or crash" type start-ups?