How to Choose the Perfect Business Partner

The right business partner is instrumental to a successful business venture. Where would Google be today if Larry Page didn’t meet Sergey Brin? What would Apple be if not for the partnership between Steve Jobs and Steve Wozniak? Yet while some partnerships click instantly, not all entrepreneurs are lucky enough to find the perfect business partner from day one. Below are four tips to help you find and vet your potential co-founder candidates.

Figure out What Type You’re Looking For:

Are you looking for someone who can throw facts and figures or someone who can come up with new creative angles and ideas? Do you need someone to help you figure out the bigger picture? Perhaps someone who can handle the business side while you focus on the technical aspects of your product or service? Knowing what type of business partner to look for beforehand makes it easier and more straightforward to filter through potential candidates. Business partners come in all packages, with some being skillful talkers who can negotiate their way into advantageous positions while others are more of a visionary who can come up with revolutionary and out-of-the-box ideas.

Tap Into Your Circle of Coworkers:

One of your past or present coworkers could be the business partner you’re looking for. Not only is this convenient, but tapping into your circle of coworkers can also give you a tremendous advantage compared to choosing a co-founder you only met yesterday. You already know or at least have a basic idea of how a past or present coworker operates. You know if they are hardworking or lazy, if they are honest or dishonest, and if they have the drive and passion or not. Send prospective co-founders a text or email or meet up with them to discuss your business idea. Only confide with people who you completely trust otherwise they might steal your idea for themselves.

Consider Partnering With a Family Member:

You always hear cautionary tales of business owners and entrepreneurs who partnered with a family member and failed. Nonetheless, there are many advantages to partnering with a close family member, one of which is that it helps you precisely identify value alignment. Sharing values is arguably one of the most essential factors that drive entrepreneurs to achieve incredible feats, take great risks, and make difficult sacrifices. That being said, working with a family member is a delicate process. While you are connected by blood, make it clear from the beginning that it’s all business.

Try it out:

You can try out your newfound partnership for a few weeks or months and see how it goes. An even more short-term solution is to start a small side project with your prospective co-founder. It takes only a few discussions with him/her to get a strong sense of whether or not the partnership has a foundation and future.

Final Thoughts:

Choosing the perfect business partner takes time and some trial and error in many cases. Nonetheless, it is a major decision that will have a tremendous impact towards your business’ long-term success.

 

Yorkville Advisors, LLC is a privately owned and operated hedge fund sponsor that was founded in 2001.

How to Finance a New Car

Financing a new car is a major purchase for most people. The average car might cost between $10,000 and $30,000, depending on the make and model. You want the best deal for your dollar. Before you step up to the sales desk, take a close look at how you can finance a vehicle with a fair cost. There are realities in the dealership world that must be evaluated beforehand.

Focus on the Car’s Total Cost:

Car salespeople enjoy the power of numbers. They’ll quote you a low, monthly payment to draw you in. This practice is widespread and smart on the part of the dealership. However, you need to focus on the car’s total cost. The low, monthly payment may equate to a huge price on the car with some multiplication involved.

Negotiate the vehicle’s cost or “out the door” price. From this number, you can consider a finance package that suits your budget. The total cost tells you exactly what you’re receiving, from the sports trim to the Bluetooth radio.

Keep the Term Short:

Financing a vehicle over six or seven years allows you to spread the payments out over a long, time period. It sounds attractive because you can buy more with a low payment. Don’t fall prey to this scenario, however.

Finance the vehicle for the shortest time possible. Three to five years is the normal range for the average buyer. This time frame works well because the car’s value should be at its midpoint by the time you pay it off. You don’t want a car that’s worth only a few thousand dollars, and you’re still paying a monthly payment for outright ownership.

Try Weekly Payments:

Every car loan is structured with a monthly payment. However, you don’t have to follow this plan as a strict rule. To reduce your payment period and possible interest costs, pay down the car loan in weekly installments. Go online, and pay part of the monthly charge. Pay more if possible.

Although car loans don’t typically have compounding interest, you get ahead of the payments with a weekly habit. Make sure you always cover the minimum required by the monthly due date, however. You don’t want to add penalties to the loan by overlooking the due date on a weekly schedule.

Get Pre-Approved:

The car dealership isn’t the only place where you can secure a car loan. Get pre-approved by your bank or another lender. They essentially guarantee a loan amount that’s funded once you find a vehicle. There’s a fixed, interest rate that can be negotiated at the dealership too. With good credit, finding a solid deal is possible with a bank backing your final loan.

You may feel obligated to agree to a finance agreement at the first dealership, but step back for a moment. There’s no obligation to buy anything until you sign the contractual papers. Feel free to leave if you experience too much pressure or the deal swings in the wrong direction. There are plenty of other dealerships to work with in today’s competitive market.

Yorkville Advisors, LLC is a privately owned hedge fund sponsor.

3 Personal Finance Habits Everyone Should Get Into

If you are struggling to save money, do not panic, because you are not the only one. According to statistics, more than 50 percent of Americans have less than $1,000 saved up. Around 30 percent of Americans have no money saved at all. While those numbers are scary, there are ways to improve your financial situation and start saving some money. Here are three personal finance habits that will help you start saving today.

Impulse Purchases:

Impulse purchases can wreck your savings account in a hurry. Statistics show that five out of six people in the U.S. are prone to impulse purchases. Additionally, almost 20 percent of people say they have spent more than $1,000 on an impulse purchase. A habit you can develop is to force yourself to wait at least one day before you make a nonessential purchase. By implementing this 24-hour cooling off period, there is a good chance you will realize you do not need the product or service in the first place.

Check Your Credit Report Often:

Unfortunately, many Americans avoid checking their credit reports and scores. Many people have no idea what their score is and how it can save them money. If you want real borrowing power in the future, make it a habit to check both your report and your score frequently. You are allowed one free credit report per year from all three of the credit reporting agencies in the U.S., TransUnion, Experian and Equifax. You can request a free copy of your reports by visiting AnnualCreditReport.com.

However, this report does not include credit scores. If you want your real credit scores, you can order them through all three agencies by paying a fee. Additionally, many credit reports contain errors. You can increase your score by having errors on your credit report removed.

Pay Your Bills on Time:

Another sure-fire way to increase your credit score is to pay your bills on time. Keep in mind that your payment history accounts for 35 percent of your credit score using the FICO-based scoring model. Your credit utilization ratio, which is how much available credit you use, accounts for 30 percent of your credit score. When you pay your bills on time, you are not only helping your credit, but you are avoiding those costly fees that come with late payments. Some lenders and credit card companies do not give you a grace period if you are running a little behind on your payments. The second you miss a payment by the scheduled due date, you are hit with late fees.

 

Yorkville Advisors, LLC is a privately owned hedge fund sponsor.

The Impact of Artificial Intelligence on Finance

We’ve all heard about artificial intelligence when it comes to science fiction movies, but many people don’t realize that while it may sound futuristic, there have been significant inroads in the field within just the past few years. It’s not just in scholarly circles, either. Artificial intelligence has become a huge resource in the world of finance.

There’s Much More Data Out There:

With the emergence of the internet as a dominant force in the economy within just the past decade, more and more data is becoming available to the business and financial sector. We live in a digital world that is chock full of unorganized and scattered data. Artificial intelligence is up to the task of delivering that data in a meaningful and impactful way.

Computers Are Becoming Extremely Powerful:

This point is obvious to anyone who has a smart phone but it’s worth re-iterating when it comes to artificial intelligence and the financial world. As computers get more and more powerful, it becomes apparent that AI improves along with it. The next decade will show just how powerful AI algorithms can get.

What Can AI Actually Do Now?

It’s easy to jump in to a science fiction or fantasy mindset when talking about AI, but there are many real world applications of it available today that produce real returns. It can learn unsupervised when dealing with data clustering and statistical tools. It’s able to pick out patterns that may not be first viewable to the human mind.

It’s also capable of learning things under strict supervision. One of its benefits is hunting for specific types of data such as when it comes to credit-worthiness. It’s also capable of learning from mistakes by utilizing repetitive strategies and observing the sorts of returns they’re capable of.

Using Artificial Intelligence in Investing:

Some algorithms can be easily used to find the link between the prices on assets and different events that happen throughout the world. They can even be used to predict the movements markets make in advance based on social media. They can white list certain users in order to fight back false positives. This also makes them ideal for dealing with credit scores and other underwriting endeavors. With that being said, there are some challenges that come with utilizing artificial intelligence and plenty of room for advancements.

Dealing with Biases:

The usefulness of a particular artificially intelligent algorithm is going to be primarily based on the quality of data it’s allowed to analyze. Even with the most pristine sources, biases that may not even be known can be present and shape the findings in ways that aren’t useful. It also requires plenty of time and resources to accumulate such data sets in order to be used by the AI program. There’s also an issue with responsibility in case things go wrong.

Overall, artificial intelligence is a boon to the financial sector as long as it’s used by the right people making good, educated decisions about things.

 

Yorkville Advisors, LLC is a privately owned hedge fund sponsor.

10 Books That Aspiring Entrepreneurs Should Make Time to Read

If you are an aspiring entrepreneur, you’ll need guidance as you start your career. You’ll need to learn about the ins and outs of becoming an entrepreneur. Many aspiring entrepreneurs seek to attend different classes and sessions in order to learn more information about entrepreneurship. However, an affordable alternative is simply reading a few books. Regardless of what career you are pursuing, there are books available to assist you. Here is a look at several books that you should consider reading before starting your career.

The Founder’s Dilemmas (Noam Wasserman):

University of Southern California professor Noam Wasserman takes an in depth look at some common reasons why entrepreneurs succeed and fail. Wasserman explains how complex entrepreneurship can be. By the end of the Founder’s Dilemmas, Wasserman explains when it is time for entrepreneurs to seek help from others.

The Art Of The Start (Guy Kawasaki):

Entrepreneur Guy Kawasaki explains to his readers the power of the internet. Kawasaki informs entrepreneurs about different topics such as marketing, crowdfunding, and cloud computing. Kawasaki advises entrepreneurs to avoid thinking of entrepreneurship as a job.

Jab, Jab, Jab, Right Hook (Gary Vaynerchuk):

New York Times best selling author Gary Vaynerchuk advises entrepreneurs to figure out what appeals to their customers and find a way to meet that need. Vaynerchuk explains the importance of social media. Vaynerchuk believes that entrepreneurs have to be willing to combine their message and platform.

Simple Numbers, Straight Talk (Greg Crabtree):

Crabtree uses real world examples and step by step instructions to answer important questions concerning human resources, taxes, and other important issues. Crabtree advises entrepreneurs to always look at the big picture.

Will It Fly (Thomas K. McKnight):

Thomas McKnight lays out different questions that aspiring entrepreneurs must ask themselves in order to determine if their business will be successful. By the end of the assessment, you should have a clear idea on some of the responsibilities that go into running a business.

Become Your Own Boss (Melinda F. Emerson):

The Chief Executive Officer of Quintessence Multimedia, Melinda F. Emerson explains how you can launch a successful business within a year. Emerson gives readers advice on how to raise capital and how to develop a great marketing strategy.

The Lean Startup (Eric Ries):

Ries lists some innovative ways to help aspiring entrepreneurs run their businesses with maximum efficiency. Ries relies on The Lean Startup Methodology.

Entrepreneurial You (Dorie Clark):

Marketing expert Dorie Clark gives readers advice on how to create a successful business plan. Clark advises entrepreneurs to dream big.

Setting The Table (Danny Meyer):

Restaurateur Danny Meyer explains important lessons about hospitality, and how entrepreneurs can use hospitality to improve their management skills. Meyer emphasizes the importance of customer service.

The One Page Business Plan (Jim Horan):

Horan lists some exercises to help entrepreneurs refine their business approach by simplifying their business plans to only one page. Horan believes that writing out a smaller business plan allows entrepreneurs to avoid making things more complex than they should be.

 

Yorkville Advisors, LLC is a privately owned hedge fund sponsor.

5 Planning Tips When Selling a Business

While some create businesses that are meant to stay in the family for generations, others start business ventures with the plan to sell eventually. If you’re of the mindset that selling your business is the best outcome, take a look at some of these planning tips you should put in place before you sell.

Create A Business Someone Will Want to Buy:

Profitable businesses, turnkey enterprises, companies with proprietary products–these are all companies that will look more attractive to potential buyers. Think of ways that you can make your business the kind of company people want to buy and build up to that vision so when you’re ready to sell, your company looks attractive to buyers in the market.

Have a Plan For the Sale Proceeds:

Selling a business can set you up with a large windfall, and if you don’t already have a plan for those proceeds, they could quickly be spent wastefully. Consider whether you want to use the proceeds to support yourself while you build another business, to invest in another company, to set aside in savings, and so on.

Remember Taxes:

It’s unlikely that you’ll be able to walk away with the sale proceeds free and clear. Talk to a tax advisor about the potential tax implications of the sale and make sure you incorporate tax payments into the plan for the proceeds.

Maintain Liability Insurance:

No matter what kind of business you run, you are exposed to potential liabilities. If you are sued–even if the complainant doesn’t win–you can drain your business defending yourself in court. And if the complainant does win, you may have to close your business as a result of the judgment. To avoid these possibilities and make sure you have an operating business to sell later, invest in liability insurance.

Keep Control Over Your Personal Spending:

Selling your business because you want to, not because you need the money, is a good place to be. It takes the urgency away and allows you to wait for the best offer. It also means that you can do more with the sale proceeds since you won’t be using it for urgent needs but instead will have the luxury of using the money where it will have the most impact. All of this can be accomplished by keeping your personal spending under control. When you effectively manage your lifestyle expenses, your debt, and your savings, you keep yourself on secure financial footing and allow yourself more restraint and patience when selling your business.

Selling a business takes quite a bit of foresight and planning. But it’s a move that can change your life and help assure your future.

 

Yorkville Advisors, LLC is a privately owned hedge fund sponsor.

5 Top Retiree Tax-Planning Mistakes

Even if you’re used to handling your taxes, things change once you retire. Since what you’ve done in the past won’t be in your best interest any longer, it’s common to make mistakes, especially soon after retirement. Here are five common tax mistakes that every new retiree should avoid.

1. Too much tax loss harvesting.

Also referred to as tax loss selling, tax loss harvesting is when you sell an asset, like one of your stocks, in order to get a loss that will offset a gain from the sale of another investment. Retirees do this in order to avoid paying gains on investments they’ve just sold. However, you’re not going to get much of a benefit from a stock loss, especially the larger the loss is.

2. Not knowing how to roll over your retirement account.

Once you retire, you’ll be able to roll over your 401(k) into an IRA. However, you have to be careful when doing this. If the money doesn’t go right from the 401(k) to the IRA, you could end up having the funds considered taxable income. Make sure that the way you’re depositing your money into your IRA is avoiding a tax hit.

3. Taking too-small required minimum distributions.

While you may think that it’s best to take a small amount of required minimum distributions (RMDs), it may be better to take larger distributions. You probably think that taking limited RMDs will minimize the tax burden, but should you pass away, your beneficiaries could end up with a huge income tax burden on the balance of your IRA. Approach your RMDs in a way that will reduce the tax rate on your distributions.

4. Not having a plan.

At some point after your retirement, you’ll be able to start taking free-from-penalty distributions from your retirement accounts. However, without a long-term plan, even a rough one, you’ll have a hard time keeping your distributions proportionate. Keeping track of what you want to take out when will keep you in the tax bracket of your choosing.

5. Assuming that Social Security isn’t subject to income tax.

While most people think that Social Security isn’t taxable, in truth as much as 85% of your Social Security can be subject to tax. If you have minimal income, you probably won’t have to pay tax on your benefits. If you have more income, though, a part of your Social Security may be taxable. Your provisional income takes into account your adjusted gross income, not including Social Security; tax-free interest; and half of your Social Security benefits.

While submitting your taxes after retirement isn’t difficult, it will be new territory the first year after you retire. Knowing what is going to change is the best way to avoid common mistakes and do it right the first time. You can also consider speaking with an accountant who will be able to prepare you for tax challenges in retirement.

 

Yorkville Advisors, LLC is a privately owned hedge fund sponsor.

3 Ways to Become Less Financially Vulnerable

Financial vulnerability essentially describes the likelihood that you could be derailed on a financial basis by unexpected events, poor money management and other issues. Even the seemingly wealthiest individuals can be financially vulnerable. After all, we have all heard stories about very wealthy people who have foolishly spent all of their funds, and we have also heard about very low-income people who have amassed a small fortune through frugality and excellent savings habits. Because all people can be financially vulnerable in various situations, it is important to take stock of your finances and to actively improve in this area on a regular basis.

Understanding Your Financial Situation and Vulnerabilities:

One of the primary causes of financial vulnerability relates to a lack of knowledge and understanding. For example, some people think that if they have a few thousand dollars in a savings account, they are good to go. However, many unexpected events may cost much more than this. In addition, your loved ones may be severely impacted by you having a serious illness, an injury or an untimely death. Planning for all contingencies, such as by purchasing life, health, long-term disability and accident insurance can all decrease your exposure to financial loss. Understand how different risk factors may affect your finances, and be proactive to mitigate those factors.

Improving Your Money Management Efforts:

Some people are particularly vulnerable to the possibility of financial loss because of their poor money management efforts. For example, if you impulsively shop or regularly buy many more things than are needed, you could be creating unnecessary risk for yourself. Rather than spending so much money simply because you can, consider how much more financially secure you would be if you had not made so many purchases within the last year and if you had invested the money instead. Spend time reviewing your challenges and habits honestly, and make positive changes to your habits going forward.

Being Actively Involved:

Money is a cause of stress and grief for many people, so it makes sense that some people prefer to let someone else handle their finances. For example, you may allow your spouse to pay all of the bills, manage credit cards and invest your money. Consider what may happen to you financially if your spouse suddenly passed away or become physically unable to manage funds for you. You should also consider what may happen if you get divorced. In order to decrease risk of loss and stress in this area, you must get more actively involved. Find ways to understand your financial situation and to actively participate in all aspects of money management.

These are only a few of the many ways that people can be financially vulnerable. Regardless of your income level, the value of your assets or other factors, there are always steps that you can take to further increase financial stability and security. Spend time analyzing your own financial situation so that you can better determine the right steps to take improve in this area.

 

Yorkville Advisors, LLC is a privately owned hedge fund sponsor.

Work Anniversaries- Personal Finance Tips You Should Make A Priority

Making it through another year at your job can be something to celebrate. For most, it signifies one year closer to retirement. During your anniversary, you should take a little time to reflect on some of the more important changes you have been through. Did you get a raise in pay? Did you finally receive that promotion you had worked hard for? No matter what happened, now is the perfect time to makes some necessary personal finance changes. Below are some of the top personal finance tips to keep in mind when you are enjoying your work anniversary.

Review Your Retirement Account:

One of the more important personal finance tips to put into action each anniversary at your place of employment is taking a look at how your 401(k) plan has performed over the past year. If it hasn’t performed as well as you had hoped it would, now would be a great time to reassess how your funds are being invested. Check to see how well each portion of your portfolio did and make some adjustments where necessary. You may need to adjust some allocations to be more conservative or aggressive depending on how close you are getting to retirement.

Handling Salary Increases:

Another thing to take into consideration around your work anniversary is whether you got an increase in pay over the last year. If you received a raise in your salary, now is a good time to reflect on what you did with the extra money. A great tip to follow with pay increases is to put half of the increase into savings. The other half will be your increase in take-home pay. The extra money for savings can go to your 401(k) or other retirement plan if you maxed out your 401(k) contributions already.

Review Stock Options:

An annual work anniversary is also a great time to review your stock options and restricted stock units to see how well they have been performing. It is also a good time to review how many new stocks became invested. Also, you can look to see what some of the tax consequences would be if you decided to liquidate. If you are considering liquidating your stock options or restricted stock units, it is best to work with a CPA or financial planner to ensure you make the right decisions.

Negotiate A Raise:

Like stated earlier, your annual work anniversary is a good time to reflect on the past year at your job. If you feel you have been doing a great job and are an asset to the company, now is a good time to think about negotiating with your boss for a pay raise. Employers want to ensure they retain their best employees. If they want to make you happy in your position and not risk losing you, they will probably be happy to work something out with you. It can oftentimes cost a lot more to replace you than to give you the extra pay you want.

 

Yorkville Advisors, LLC is a privately owned hedge fund sponsor. The firm also provides specialty financing solutions to its clients.

5 Personal Financial Rules to live by in Your 40’s

 

 

Life can be very good for many in their 40’s. Often, people are firmly established in their careers, their children are maturing and establishing their own identity and the future is full of optimism. But to keep that rosy glow a reality for what lies ahead, you need to take a serious look at some personal financial rules to live by.

1. Reduce or eliminate debt:

In many instances, it is impossible to avoid debt. The impact and costs of student loans and emergency medical bills can linger for many years, but to truly achieve financial freedom, you have to strive for their elimination.

2. Accumulate Cash Reserves:

If you have eliminated debt or been fortunate to avoid it so far, the best way to not fall victim to its ravages is to have cash on hand for emergencies. A general rule of thumb suggests keeping three to six months of income in a liquid and easy to access account. It’s also prudent to regularly put aside amounts for major expenses you know are coming. Think about that roof, for example, that has been repaired once or twice and still leaks.

3. Maximize your Employee Savings Options:

Take a little time to understand the options your company offers. At the very least, you should save as much as the employer matches. This simple strategy effectively doubles your savings. As concerns the volatility of your investment choices, obviously each of us has our own risk tolerance, but keep in mind that the younger you are, generally speaking, the bolder you can afford to be.

4. Consider an Individual Retirement Plan:

Many experts caution those in their 40’s to exclude Social Security from their retirement planning. It’s not expected to vanish entirely, but there are uncertainties regarding eligibility age, means testing for tax-ability and other factors. Consider contributing as much as you can to either a traditional IRA or a Roth IRA. Many people like taking the tax write-off now with the traditional IRA, expecting they will be in a lower tax bracket in retirement. Others, however, predict a tax rate increase and feel better protected by having a tax-free income stream as provided by the Roth IRA.

5. Come to Grips with College Costs:

If you’ve got kids who are approaching college age, how you handle their college expenses can have a dramatic impact on your quality of life in retirement. Even if you are one of the wise ones who began saving when the children were young, the reality of costs today can be daunting. Consider all options to save money, including:

• A junior college for the first two years
• Opt for a state school over a private university
• Maximize scholarship and student work opportunities
• Consider purchasing a condo in the university town for your student to live in. This option, perhaps with roommates, can be less expensive that on-campus living, and maybe the equity built over four years could offset tuition costs.

Making wise choices in your 40’s can lead to long and happy retirement years.

 

Yorkville Advisors, LLC is a privately owned hedge fund sponsor that also provides specialty financing solutions to its clients.