Value

The Complexity of Goodwill

The Complexity of Goodwill

I often get asked about goodwill – its importance as well as how to value it. It’s complex. Goodwill is intangible. Hard to quantify but an important asset none the less. 

Goodwill is defined as the amount of money someone is willing to pay for a company over and above the value of the assets within the company. The company’s book value is the equity within the company as listed on the balance sheet. Any money paid above the book value is considered goodwill. It’s the difference between cash received during the purchase and the actual value of the company.

Why Giving Away Your Product for FREE is Great!

Why Giving Away Your Product for FREE is Great!

Don’t do it they said. You’ll damage the brand and reduce its value. People don’t trust free products. The list of reasons why you shouldn’t launch a free product is long. The scariest of course is “how will your company survive?”

But let’s image you answered the survival question and genuinely felt that your product could positively impact the world. The only thing between a noticeable change in the lives of small business owners and your product was letting them know you existed. It’s no small task, but it’s the biggest question in many entrepreneurs’ minds. How do I get my product in more hands? In many cases similar to ours, the answer is to give it to the people who can benefit the most.