With the way Mount and Blade 2: Bannerlord's recruitment system is set up, players will usually have to start from scratch.While technically, players could also recruit high-tiered soldiers from

I usually only make about 3 workshops and wait till its in a city I own, a woodworker / smithy / potter or brewery woodworker/smithy slowly produces higher quality weapons and shields that the town sells overtime the workshops lv up ( only seen it once ) took ages like 4 in game months think they only lv up after they make so much profit but higher tier workshops = higher tier goods they make
My 2 pesos: Khuzait Strength: Mongol horse archers, neigh unstoppable in wide, flat, open terrain. They will wear down even shielded foot units in pretty short order and absolutely slaughter rival archers with ease.
Check the city market and see which resources they have tons of like grain or flax, etc. Then if for example the city always has lots of grain a brewery is a good choice (which uses grain to produce beer). If you want to know which type of workshop uses what resource try selecting them when you're buying one from a workshop worker.
Go To War. Fighting another lord in battle is the easiest and most effective way of making money. War will require thousands of troops but will give you enough Denari to buy tens of thousands back
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mount and blade 2 bannerlord best workshop for each city