What Is Multiple Income Stream Business?

What is a Multiple Income Streams Business?

If you are like the majority of the general public, then your first thought when hearing multiple income streams is likely What in the heck is that? While it’s easy to be confused by technical jargon, in this instance the phrase can be taken at face value. A multiple income streams business is exactly as it sounds; a business that brings in profit from more than one source.
For some, this may mean a business that sells both services and goods. For others, such as those who work for themselves, this may mean having a few different small businesses running at the same time.

One of the most common forms of a multiple income streams business is that of a person working for themselves, from home. Often times, those who are successful at working from home have more than one -work from home- venture running at any given time. This could mean, for example, selling cosmetics, running a home child care, and selling on eBay concurrently.

There are two different types of income streams. First, there are active income streams. These are your sources of income which require your time and effort, whether that means providing a service, or perhaps marketing a product. Second, there are passive income streams. These would be your stocks, investments, or perhaps even people working for you. Many people utilize companies such as Avon, Mary Kay, Amway, etc. to have people working for them and generating a small income without having to do a good portion of the work themselves. Often this requires either funding, or significant effort, to establish, but once established can provide a decent revenue with minimal effort on your part. MLM’s are one of the most common forms of passive income streams.

Now that you have a better understanding of what a multiple income streams business is, you might find yourself wondering what the point would be of having multiple sources of income, as opposed to having one source (i.e. a regular full time job) which provides sufficient income. Have you ever been told -Don’t put all your eggs in one basket-? When the job market turns slow, the person who has 4 different moderate sources of income is going to fare much better than the person who just lost their job. Think of it this way;if you consider it to be a game of odds, would you rather have one source of income, and risk losing it? Or would you rather have 3 sources of income, and know that even if you lost one of them, you’re still financially taken care of?

The other winning argument for establishing a multiple income streams business would be debt management. Remembering to set aside a little extra cash for reducing debt is next to impossible for many people. In today’s world, it’s entirely too simple to forget about the collections accounts hiding on your credit report. If you set up one income source to pool into a separate account, you can rely on the “out of sight, out of mind” theory to help you stick to your plan of only using that particular income for paying off old debts, or establishing your own little -nest egg-

Carmelo Humphrey,
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