The business valuation you had a few weeks or months ago might have tallied up the value of the tangible assets and services your business offers, but is that its true value? No, or course not.
Where a business’s true value lies is in its goodwill and intentions. In short, this can broken down into even simpler terms, and can be called its reputation and customers’ feelings. It does not matter if the product truly is the best on the market or if the performance of services is second to none, because if customers are left without a favorable impression, your business might be on the line.
So what goes into creating goodwill?
- Service. Not just good service, but great service. Outstanding service is almost a free form of advertising, as most customers enjoy sharing their best experiences with a company. This can also help build reputation.
- Personal relationships. Step outside of the virtual business and into the social media world. Now, say hello. Make sure your business is known, has a presence and the person in charge of all social media interactions understands what the business is all about.
- Consistency. Remember the bagel place you went one time, where the service was great and the bagels were fresh, and you could not wait to take all of your friends to it? Only, that second visit was less than ideal. The bagels? Meh. The service? Well, they smiled, kind of. Chances are that you and your friends left the bagel shop with a pretty dour impression. One or two good interactions does not suffice when creating goodwill.
Goodwill does more than just increase your business’s reputation in the community, it increases its value far beyond what its tangible goods could be valued at alone.