Goodwill

What is goodwill?

Usually it’s the difference between the assessable value of a business, it’s bits all added up, and what someone is prepared to pay for it.

Historically you might have heard people talking about brand value and such like to explain away goodwill.

But in reality it’s always been about the value attached to the barriers to entry in oligarchical business environments.

Standards, regulations, brown paper bags; they all add up to the value of goodwill.

Essentially the difference between competing from a freshly minted business and buying an established business has been the cost of the hidden barriers to competition.

These hidden barriers to entry have made customers less likely to switch by stacking the odds in the business environment.

The internet has the potential to disintermediate away the value of goodwill in all old school services businesses.

Just ask Cabcharge if you don’t believe me.