This is a link to a great article written by Jeremy Over, a partner and lawyer in our corporate team. In the article, Jeremy explains the important factors when valuing a business - in this case a pub. It's a great read.
My interest as a marketing person is in the importance of reputation. In marketing circles we talk about reputation - mainly in the sense of brand and our client base as well as our position (what we want people to perceive / feel about us). From a day to day marketing perspective, this is associated with a key (THE only?) objective of finding and keeping customers.
It's not surprising to hear from Jeremy how your reputation also matters as a key component of how your business is valued.
So business owners and marketers alike - pay heed and make sure you are looking after, nurturing and developing your reputation in positive ways. It will help you today and tomorrow.
Whether you are running a local pub or a 50-bedroom hotel, your most valuable financial asset is normally intangible and that is your reputation. Reputation breaks down into a number of factors and, financially, is referred to as ‘goodwill’. It would, typically, include things such as intellectual property, customer loyalty, your corporate brand, and the increasingly important customer database.