The Power of Goodwill
Goodwill is a crucial intangible asset that significantly impacts a company’s value and profitability. It can be evaluated in monetary terms if a company is bought or sold. Usually, this term refers to the collective efforts an owner or seller puts into their business over multiple years. They may have accumulated significant goodwill in the market by establishing themselves as a reliable and trustworthy businessperson.
In the long run, goodwill impacts the brand name, brand identity, customer base, customer loyalty, brand reputation, good customer relations, good employee relations, employee satisfaction and proprietary technology.
Goodwill as a Business Strategy
There is no shortage of organizations conducting business transactions worth millions each year. However, each will ultimately be worth a different amount once their goodwill is measured. Goodwill stems from character and performance and cannot be bought, sold or traded according to a businessman’s plan. It is a cumulative result of multiple years of silent effort, catering to customers’ demands and providing the best services to each client based on the values of integrity. Goodwill is also said to be a great asset to any business.
How Does The Power of Goodwill Benefit Your Business?
If you are trying to start a new business, you must implement behaviour that elicits goodwill from your customers and fellow business owners. Here is how it can benefit you in the long run:
Offers a jumpstart to your business As an entrepreneur, if you decide to take on a brand franchise, you can become the immediate beneficiary of the goodwill they have accumulated over the years. Once you open the brand’s outlet in a new location, you still retain the brand’s reputation, trust and other perks. Thus, your business gets a head start in the market from day one. Compared to a self-owned business, you will work faster and upwards in the market with the brand’s collected goodwill.
Leads to prestige
Every franchisor develops its brand’s identity by working hard on each aspect and refining its products and services. Over the years, it leveraged the respectability and value of all associated with it. Additionally, if you take on a franchise, you are associated with that renowned brand, and you can also, directly and indirectly, benefit from its prestige.
Attracts better staff
An individual franchisee will always attract better-skilled, more talented and qualified staff when affiliated with an acclaimed brand. Employees immediately recognise the value of being part of an organization that offers a good pay package and growth opportunities. Additionally, working with an established brand also adds value to their resume.
Improves employee self-esteem
The employees in the franchise outlet feel a higher sense of self-esteem because everyone they know perceives them with a more appreciative outlook. If the employees receive proper training in customer service, they add to the brand’s goodwill; over time, happy customers share their experiences with others. Similarly, the parent company also appoints a team to manage their multi-restaurant operation and can attract star professionals who, in turn, leverage their networks to offer value.
Boosts advertising and marketing
Advertising and marketing are other excellent tools that enhance your brand’s goodwill in the market. They also directly impact your company’s reputation and increase your brand’s value. Every franchisor must consistently invest in advertising and marketing for its brand. Each new product, development and franchise needs adequate marketing to elevate the parent company’s image.
It can also be crucial in emotionally connecting with your desired audience. Emphasising the messages you put out there for your audience directly affects the brand’s identity in the viewer’s minds.
So, what do you think about goodwill in business?
As a prospective franchisor, it is essential to remember that goodwill is not a formula. It is built in the long run by consistently defining and highlighting the brand’s best features. You have to put in considerable effort to earn this intangible asset one day at a time to reap its future benefits.
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