Dr. Periklis Gogas is an invited contributor to The Business Thinker magazine. He is Assistant Professor at Democritus University of Thrace, Greece, teaching Macroeconomics, Banking and Finance
The adoption of the euro as the common currency for the participating EU countries was hailed by politicians, academics and business people as a very important step-forward towards the ideal of European economic integration through the implementation of Robert A. Mundell’s Optimum Currency Area theory. The new currency was a greater success than many economists expected. Outside the EU it has become the second -after the dollar- reserve currency for many central banks and close to thirty nations worldwide chose to peg their currencies to the euro. The new currency helped to eliminate exchange rate risk and minimize transaction costs within the Eurozone, boosting intra-EU trade and efficient capital allocation.
Richard Parker: is the author of the How To Buy A Good Business At A Great Price© series which is sold in over 80 countries. He is the founder of Diomo Corporation and has personally purchased eleven businesses. Learn more about Richard and his materials at diomo.com
With so many options available to you, the question will become which path of the business ownership arena should you pursue? Between franchises, existing businesses, and start-ups, it can become a bit overwhelming. However, there is one choice that makes the most sense if you want to have your own business.
Your chances of success are clearly best when you buy an existing, profitable business for many reasons which we’ll discuss in a moment.
While the idea of a franchise appeals to many people, don’t buy a new location; buy a resale that’s already successful. This way, you marry the best of franchises and existing businesses.
With a start-up you have two challenges: developing the product or service and then seeing what, if anything, people are willing to pay you for it. It’s a lot of guessing. On paper the plans usually sound great but the results tell a different story. 96% of all start-ups fail in the first five years.