3 Different Forms of Small Business Income

As a business owner, developing different forms of small business income can be very beneficial. When you do not have to rely on one source of income, it can make things a lot easier on you and your business. Here are a few of the different forms of small business income that you could create.

1. Sales Income

Most businesses will create regular income through the normal channels. For example, this type of income can be created by selling a product or a service. For most businesses, this is the vast majority of their revenue.

2. Capital Gains

Many businesses take the profits that they make from business operations and use that money to invest. When a company makes investments, there is a chance that they will profit from capital gains. This can happen when you buy and sell stock, mutual funds, or even real estate. This could potentially be a large source of income for your business and will be taxed at a different rate than regular income.

3. Royalties

Depending on what type of business you are in, your company might be in a position to receive royalties. For example, if you are in a business that produces creative content, you might be able to receive royalties for your work.

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