Most life-style businesses have built in limits to scale, most start-ups consider not scaling up and out a failure of sorts. As soon as compound growth is involved you're out of lifestyle business levels.

A typical life-style business is < 5 people, is in business-to-business, has a limited number of customers and does not aim to change that.

A typical start-up is one that is started by < 5 people, aims to achieve significant growth and is basically never going to be satisfied with the amount of reach they've got.

Start-ups will take outside investors, life-style businesses will not.