Thursday, December 11, 2008

The Economics of Relationship (Part II)

What is Goodwill? Goodwill is an accounting term that describes the portion of value that is not attributable to the business' net assets. For instances, if a company is worth 1 million dollars and another company is willing to pay 1.2 million dollars, the excess of 200,000 dollars would be labeled as goodwill. How does goodwill arise in the business world? Goodwill is the "extra-mile" that a business puts in to its operations: giving back to community, consciousness of the environment, and a comfortable work environment for its employee.How can we, as individuals, foster goodwill in our relationships?

As I said in Part I, we are all marketable products that play in to the supply and demand system we call dating and relationships. The supply of needed products is the foundation ( the net asset, I mentioned above) that goodwill is added to. Goodwill in a relationship is beyond the basic attraction, physical interaction, a contractual compromise to live as a unit rather than separate entities. Yes, this approach to relationships, though a bit callous at times, has room for the sappy and mushy moments that are usually associated with relationships. Goodwill is the "extra-mile" performed by those involved to make the relationship, not just work, but special.There is no clean cut method to become the Google (which has alot of business type goodwill) of relationships, but you must insist of yourself to want more then the pure operations of your business (going through the motions). Reach beyond the book value of your assets and push for the creation of goodwill.

Peace before all,

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