Entrepreneur Plus - Short White
For Subscribers

Are You Diversifying Your Income? You'd Better Start. Just as a business shouldn't rely on one client, your personal income should never rely on one source.

By Steph Wagner

Opinions expressed by Entrepreneur contributors are their own.

Pixabay

Everyone can agree: A business should never rely on just one customer to generate the majority of its revenue. When that client moves on -- poof! -- there goes the business. But you need to apply that thinking to the bigger picture, too. Are you relying upon your business to generate all your personal income? That's a problem.

Don't think of it as a knock against your ability as a business owner or your company. All you're doing is hedging, and that's smart. For example, one of my clients is a lawyer. She does well, but her business, like any business, has ups and downs. So she also bought the building that houses a Wendy's franchise in Michigan, which provides her a 7 percent annual return on a lease that runs in five-to-seven-year increments. (I own rental properties, too. And as I wind down my business -- which, hey, isn't happening yet! -- that cash will fund a sizable chunk of my retirement income.)

This is a subscriber-only article. Join Entrepreneur+ today for access

Editor's Pick

A Father Decided to Change When He Was in Prison on His Son's Birthday. Now His Nonprofit Helps Formerly Incarcerated Applicants Land 6-Figure Jobs.
Lock
A Teen Turned His Roblox Side Hustle Into a Multimillion-Dollar Company — Now He's Working With Karlie Kloss and Elton John
Lock
3 Mundane Tasks You Should Automate to Save Your Brain for the Big Stuff
Lock
The Next Time Someone Intimidates You, Here's What You Should Do
5 Ways to Manage Your Mental Health and Regulate Your Nervous System for Sustainable Success

Related Topics

Business News

'I've Got the Bug for Business': See All of Mark Wahlberg's Entrepreneurial Endeavors, From Marky Mark and the Funky Bunch to Wahlburgers

Mark Wahlberg owns businesses in several categories, including entertainment production, apparel, fitness, and nutrition.

Business News

'I Am Just Floored': Woman Discovers She Won $1 Million Lottery Prize While Checking Her Email at Work

Initially, she thought the email was a scam, but went to lottery headquarters and walked away with a six-figure check after taxes.

Business News

South Park Creators Spent 'Infinity Dollars' Renovating Iconic Colorado Restaurant, Set to Reopen Soon

Casa Bonita, a long-time favorite of South Park creators Trey Parker and Matt Stone, went bankrupt during the pandemic. The duo purchased and painstakingly renovated the Mexican spot "like a piece of art," Stone said.

Leadership

How to Identify and Handle Toxic Business Leadership

Toxic business leaders are the danger of modern corporate life. Unfortunately, they may hide behind good reputations. Let's discuss four signs of toxic leadership and strategies to deal with it.