How is Goodwill Generated?
In a partnership business, goodwill represents the intangible value that arises from a firm's reputation, customer relationships, and overall brand strength. Goodwill is generated through consistent, positive business practices that enhance the firm's standing in the market.
This includes delivering high-quality products or services, maintaining strong customer relationships, building a solid brand identity, and fostering a loyal customer base.
In addition,
factors such as strategic location, effective marketing, skilled management,
and a unique business model can also contribute to the creation of goodwill.
Essentially, goodwill reflects the extra earning potential
that a business possesses due to its favorable attributes and the trust it has
built over time.
Two Cases
Here are two very good cases relating to my personal experience, of the points in bold above, how these are related to generation of Goodwill in real life.
A recent example of ' How Goodwill is generated?'
I retired four months back, from a Senior Secondary School, in North India. I didn't have any copy of 'Together with...' Though, I had seen it in its initial years.
I requested the author of this book giving a brief introduction, through WhatsApp message. He, instantly gave me the contact no. of the concerned person.
I didn't have to prove my identification of ' being a teacher'.
Within 24 hours, I got the books. Really, no words for this author.
My Deep Respect and Thanks.
Another, 'Old is Gold' example
I have already shared in a number of Teachers' Groups on WhatsApp. the example of a leading author of Accountancy.
It happened in 90's. I had to change the book prescribed for my students as there were a number of mistakes in the previous book.
I opted for the book by this author. I solved the exercises of the book. I had some doubts and there were some mismatches of the answers. I was waiting for someone to resolve my problems.
After 2-3 months, there was a seminar conducted by the publisher of this book. The same author was the resource person. After his lecture was over, there was a question-answer session.
I approached him at the end of this session, with my problems. He just asked me to write and post, all those points, Question no. and Page no. I did the same.
After a week, I got the solutions to all my doubts and problems. This was in 90's, that time, when there were no mobiles and photocopy was costly. I got all the photocopies of handwritten solutions, by post.
I used to quote this example in my class, every year.
Till date, I have deep regard for both 'The author and his book'.
This dealing becomes the base of Goodwill and Rich legacy, that can travel from generation to generation.