Category 4
Business ownership income
You own part of an operating company that somebody else runs day to day.
Everything in this category is paid the same way, so what separates one page from the next is the wrapper rather than where the money comes from: how much it takes to start, how quickly you could turn it back into cash, who does the work, how it is taxed, and how it fails. The line on each card says whether the income keeps arriving once it is set up or whether somebody has to keep working for it. If the mechanism itself is new to you, the course spends a whole lesson on it and is a shorter way in than any single page here.
Silent Partner Investments
You put money into someone else's business, take no management role, and receive a share of the profits set by the partnership or operating agreement.
Read →Limited Partnerships
A general partner runs the business and carries the liability; limited partners supply the capital, stay out of management, and receive distributions and a K-1.
Read →Private-Equity Funds
A closed-end fund buys controlling stakes in established private companies, improves and leverages them, and returns cash to investors when the companies are sold.
Read →Venture-Capital Funds
A fund buys minority stakes in early-stage companies and returns capital only when a few of them are acquired or go public, so there is no income along the way.
Read →Search Funds
Investors fund an individual to spend a year or two hunting for one small profitable business, then fund the purchase and own most of the equity while the searcher runs it.
Read →Franchise Ownership With Hired Management
You buy the right to run a branded outlet under a franchise agreement, then pay a general manager to operate it and keep what is left of unit cash flow.
Read →Small-Business Acquisitions With an Operator
You buy an established small company outright and install a manager to run it, keeping the cash flow left after debt service, capex and the operator's pay.
Read →Revenue-Share Investments
You advance capital to a business and are repaid a fixed percentage of its monthly revenue until an agreed multiple of the advance has been returned.
Read →Profit-Sharing Agreements
A contract gives you a defined slice of a business's profits without owning shares, so the payout depends entirely on how the agreement defines profit.
Read →Employee Stock Ownership
Employees build an ownership stake in the company they work for — most formally through an ESOP trust that holds shares and pays out after they leave.
Read →Minority Ownership in Private Companies
You buy a non-controlling stake in a private business, so distributions, information and any exit depend on the shareholders agreement and on whoever holds control.
Read →Publicly Traded Stocks
Buying shares on an exchange makes you a fractional owner of an operating company run by professional management, with returns from business value and any distributions.
Read →