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Goodwill - The most valuable of business assets!

This e-book is provided to help you understand what goodwill is, why it is such a valuable asset to you and the two most essential elements of your business that contribute to the value of its goodwill. We’ll then go on to discuss where marketing, and particularly online marketing, fits into the picture. The e-book is structured as follows: Part 1 Part 2 Part 3 Part 4 Part 5 What is goodwill? Why is goodwill a valuable asset? How is it measured? How can you create goodwill? How does the Internet fit in? Summary . | GOODWILL The most valuable of business assets A complimentary e-book from Ace Business Promotions Presented By John Marchant www.acebizpromo.co.uk Copyright Coker Trading Company Limited 2010 Ace Business Promotions is a trading name of Coker Trading Company Limited Registration number 4967108 Registered in England Registered office Foxhole House Yeovil Road East Coker Somerset BA22 9HH England Goodwill The most valuable of business assets This e-book is provided to help you understand what goodwill is why it is such a valuable asset to you and the two most essential elements of your business that contribute to the value of its goodwill. We ll then go on to discuss where marketing and particularly online marketing fits into the picture. The e-book is structured as follows Part 1 What is goodwill Part 2 Why is goodwill a valuable asset How is it measured Part 3 How can you create goodwill Part 4 How does the Internet fit in Part 5 Summary Please note that our e-book is not a definitive work on the creation or valuation of goodwill. It is provided to you without charge simply to stimulate thought as to how you can get the absolute maximum out of your business in both the short and long term. We hope you find it useful. 1 Goodwill The most valuable of business assets Part 1 - What is Goodwill Let s start with Why is it the most valuable of business assets Because you the small business owner or manager can create it from nothing and for very little or no cost By the application of sound principles and a degree of persistence you can create an asset of enormous value. So what is goodwill The simplest definition of goodwill is that it is the amount that a purchaser of a business is prepared to pay for it in excess of the value of its other assets less its liabilities. Let s take a restaurant as an example. The business may operate from premises that have a value - a bricks and mortar value - of say 250 000. The equipment fixtures and fittings of the business may be .