Personal goodwill – dogs (1)

A dog develops a fondness for its owner, rather than the place where the owner lives. A faithful dog follows its master.

The owner-managers, leaders and gifted individuals in a business are the creators and custodians of dog goodwill. This personal goodwill attaches to the proprietor of the business and reflects her skills and personality. The bad news - it can’t be sold either with the business or separately, unless a cast-iron employment contract exists.

Dog customers see the value in the company because of the people running the show, and so are most likely to change their preferences if the company leaders relocate. Gourmet diners tend to follow a particular chef when he or she moves to a new restaurant venue.

Some customers are attached to the owner of the business due to her exceptional skill, personality, and honesty. This thinking applies to professionals like accountants, doctors, lawyers, and personal service businesses like hairdressers.

Dog goodwill is unique to an individual and shouldn’t be paid if the individual isn’t part of the deal. These customers emotionally invest in personal goodwill which is not transferable.