In business accounting terms, Business Goodwill is considered an intangible asset. That is, it cannot be physically measured. Try building a business without it however, and that business is doomed to struggle, feebly, until it eventually expires.
Goodwill is reflected in the reputation of a company, it’s revenue generating abilities, and it's bottom line, or net profit.
Equity encompasses all assets, including physical assets such as vehicles, buildings and hardware. It also includes Intellectual Property such as proprietary software, trademarks, and patents. Even key personnel if they are prepared to stay with the purchaser.
Detract any unpaid debt and the resulting figure is your measurable equity.
Although for resale purposes these two components should be negotiated separately . . . combined with Equity, Goodwill constitutes the market value of any business.
Equity then is the total market value to the owner if he or she ever wishes to sell
As valuable and important as material equity is, it pales
into insignificance without its intangible partner. Building customer
rapport is the driving force that makes a business valuable beyond it’s
measurable physical assets. And determines it’s income.
is fundamental to healthy relationships. Ideally, it is reciprocative, but you must take the lead.
Healthy relationships are fundamental to commercial success.
Yet we still see many businesses struggle to comprehend this concept - as if it did not exist - and treat their customers as the enemy.
Best Practice - developing a business mindset from day one - tells us that making the effort to truly understand the Power inherent in this abstract concept will underpin the viability of our Enterprise for as long as we implement it.
It makes sense then, to start, and stay, on the right footing.
The most effective way to build Business Goodwill can be summed up in just three words . . .
- Satisfy The Customer -
Human relationships are as volatile as we allow them to be.
Sometimes, when business goodwill is not returned, retaliation is tempting. To avoid irreparable damage to any relationship, we can take our cue from George Eliot, the pen name of Mary Anne Evans, a 19th century Polymath with the insight of a Seer.
Mary Anne Evans cautions us that . . .
The responsibly of tolerance lies with those who have the wider vision
Mastering the skill of tolerance delivers rewards that:
. . . and lead to innumerable benefits that advance
the entire Human Race.
Whilst her sage advice may
seem applicable only to levelheaded folk in society, when dealing
with primitive mindsets, it is relevant to our every interaction with
Business is no exception.
The determination to establish and maintain business goodwill allows you to participate in any field of activity you are suited to, with the confidence of knowing that you have a better than equal chance of success.
Because, sad to say . . .
Absence of business goodwill is a prime cause of business failure
As sad as that is for the operator who neglects to recognize this pivotal element of commerce - it is . . .
In addition to the devastation such a failure visits on the lives of those whose income is involved – depending on the business, that can be extensive – business failure orphans and isolates the customers who could have otherwise sustained a thriving enterprise.
This sad state of affairs is your legitimate advantage.
These Orphans are seeking a new home, where they will be treated with the importance they are entitled to. A home where their needs and desires are satisfied.
That new home can be your business.
When you treat your customer with dignity
pay attention to them - and their requests
take an interest in their problem
solve it with equanimity
then . . .
You are well on the way to establishing the Goodwill that renders a business bullet proof
Have you noticed that here too, in common with low entry barriers, resides another tremendous opportunity available to the prepared mind that is determined to follow through?
Goodwill is a genuine desire to deal fairly with our fellow Humans, placing their well-being at the forefront of one's mind.
By degrees, Personal Development helps to widen our vision and embrace the responsibility of tolerance. Once we are on this higher mental plane, squabbling and bickering become abhorrent. Instead, we maintain a positive, willing to solve problems, mindset.
Failure – in any endeavor - is rooted in nothing less than a lack of understanding.
When one understands how to operate a business, that it is a process, the fear of failure fades into oblivion. Your mind relaxes and expands as you nourish it with positive thoughts of success, based in the reality of factual knowledge.
In this relaxed state, your innate creativity comes to the fore and begs to be given free reign.
Potential disputes are resolved before they become disruptive and demand time that should be spent on furthering beneficial endeavors.
Goodwill may not be physical - nonetheless - like Electricity the effects
can surely be seen and felt
Not the least in a healthy bottom line
The step by logical step format of the The Solo Build It! Action Guide provides every iota of information you need to create an atmosphere of success. From your first encounter with this how to masterpiece, through to satisfying the customer and building Goodwill that is impervious to competition.
effect their part of the business goodwill equation by returning to
purchase again, and again, often introducing new clients . . .
- That Is What Makes A Business Valuable -
Solo Build It! has business goodwill covered in the Action Guide, Tips and Techniques Headquarters, - a vast repository of useful articles – and of course the SiteSell Forums, where you will find Goodwill per se, flows as freely as does Good wine.
Next - Tools Are Essential
Return to Solo Build It! Review