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I made an extensive guide for the question you asked. read trough it.
Not the best option, fastest option. but will hit your economy later game when you lose money because the villagers are poor instead of rich.
If you start a business in every city you could eventually be getting 5-10k denars from them every week. That is more than enough to keep a large army employed. After that, any additional money you get from trading or looting just adds to your bank account.
Without that stream of passive income, you are fighting a constant battle against the clock, trying to earn enough money to pay your troop wages each week. Eventually you will be forced to do things you don't want to do (like raiding villages) just to avoid going bankrupt. Having those enterprises keeps you solvent and in control of your destiny.
So far I have about, oh... Eight companions, 7 elite 'old captains', 12 nobles, about 30-40 mid range spearmen, captured elite mercenaries and some horsemen to mop up archers and 'runners'. Also, check on quests for lords/kings and mayors, sometimes you'll get some lucrative ones that don't take much time to complete, though avoid being in bad standing with villagers, you want their goods and you want them to stay happy. Oh yeah, tournaments are another way of doing it on occasion, at least in Viking Conquest, if you bet on yourself in each round at 100 silver, you'll end the competition with 4000 gold or so, just put the damage taken to 1/4 so it's feasible and save before you try, if you fail, reload. Not sure if it's the same in your version of the game, but that's my way of making cash and mitigating my expenses.
xD it always depends on what oriented the character is.