[nroach]

It's simple really: lifestyle businesses supply enough profit to fund the creator and his or her employees and suppliers. They do not typically create enough free cash to interest investors.

Investors/VCs/Angels define "success" as an investment that returns enough cash to not only make a positive return on its own, but also to offset losses from the other "misses" in the portfolio.

That investment return can come directly from profit, or it can be achieved by telling a compelling growth story that allows others to buy out the investor's position and provide an exit for the early investor.

So, the question is really one of audience: do you aspire to provide a good living for yourself, your employees, and your business partners? Or are you swinging for the fences and able to provide returns to the investment community as well?

Whether you consider Google, Groupon, or Joe's Garage to be a success really depends on who your constituents are.