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The article describes those key factors that determine why family businesses are able to overcome a crisis more easily than non-family corporations.

At the beginning of the financial crisis in Europe, most people believed that large public corporations would be prepared to withstand the drubbing.

They were wrong, were the characteristics of family companies that enabled them to quickly stay afloat.

While large public corporations suffered a blow in its activity during 2009, family firms were less affected.

There are several factors that determine why they are able to more easily overcome a crisis. Unlike public corporations, family businesses have non-economic motivations beyond mere business goals. And it is precisely those social and family factors that make these companies are well prepared to survive long periods of crisis.

Second, the increasing trend to measure corporate performance in terms of short-term devastating effects for the development of the economy.

The successful family businesses have a corporate governance system whose main objective is to create value for the whole community. In this way, they can prevent disasters such as occurred in recent years, when the profit motive of a few, motivated by short-term interests, threatened the prosperity of many.

In addition, family capital, also known as patient capital, is not subject to daily scrutiny of financial markets or the rail pressure of shareholders eager to positive quarterly reports. Thus, family firms may face losses for a few years while its business strategy remains intact.

And finally, the most successful family businesses have been able to align the interests of all its members and are particularly interested in keeping alive the family values for generations.

Noting some success stories, it is easy to deduce that the survival of businesses going to have the ability to act socially responsible. But this entails not only establishing certain non-economic objectives, but also reflects how these objectives to be achieved and how to reward those responsible for their achievement.

Survive or not this crisis has depended largely on the ability of directors to create value for the entire community rather than focusing solely on maximizing the benefit of shareholders.

Therefore, we must ask why the majors, many of which were once successful family businesses have stopped paying attention to these four factors causing such destruction of economic and social value during the financial crisis that erupted ago three years and still continue to suffer.

The blame is the murderer of free primary education. Want financial freedom? The first thing to do is get out of debt. Is the number one priority. One of the reasons I have is the financial freedom that I have no debt except my house payment. And I work hard for me and our property manager with us in this way. For years I was old junker car, and as I looked bad, I had the financial freedom that others who were not in debt! There is an old proverb – The borrower is servant to the lender. Who has freedom? The lender. Who does not? The borrower. Develop a plan to get out of debt!

Embrace delayed gratification. Here’s how: Buy now and fight later. Another principle: Delay, investing money, and all you want later! And even the most important! We now tend to be fun, but if you can not and should not lead even financial burden that will actually get more than expected to buy later! More than better management. The fact is that most of us earn enough. What would be advantageous to set our priorities and live on a budget. As we take control, our budget is relaxed a bit and we will benefit more. The money may not be your response if you start working for you. Spend some time thinking about his attitude toward money. You may be surprised to see how you can change a bit to see things a little different and enjoy true financial freedom!

7 Steps to Financial Freedom

Step one: pay yourself first.

Pay for itself based on invest your money so it can grow for you. This is a very powerful concept. For example we know that $ 1,000 invested at the rate of 15% per annum compound, grew to $ 19,962 in just 20 years, this is the interval of about 20 times the initial capital.

The best way to pay yourself is through an automatic investment plan, it is a program where the money is withdrawn automatically and regularly  your account, savings account or by check.

Step 2: reinvests the return on your investment

reinvest your investment return is really important for the long term out your finances. Many investors are starting on the right track. They have successfully created your Automatic Investment Plan. Let’s grow your investment accounts, everything is working properly, but then everything collapses or shut down completely when they carried out the sabotage of their income “indiscriminately consume” profit for apparently little real importance. Read the rest of this entry »

Being a millionaire is the dream of almost everyone. However, few people follow a plan that allows them to achieve that dream and, conversely, many who merely hope to find one day find a way to enable them to become millionaires overnight.

However, unless we win the lottery or receive a large inheritance, being a millionaire is not something simple that can be achieved from one moment to another, but that is something that requires time, effort and proper planning.

The following is a guide consisting of 10 steps that will help us on our path to wealth. It is a guide to follow to assure us that we’d be millionaires, but it gives us chances of success, if we follow his steps with discipline and patience. Read the rest of this entry »