"Lifestyle business" is generally not a very good term. On the one hand there's a small company that isn't very growth-oriented, throws off a modest amount of cash, and is very full-time job for the owner/operator. (Think a lot of franchise/retail or solo consulting.)

On the other hand, you have a business that generates a decent largely passive income that lets the owner take lots of time off and basically not work any harder than they want to.

I consider the latter a lot more lifestyle-businessy than the former.