Quote:
Originally Posted by garysanfran
When buying a business, there is a value for "goodwill". It's a subjective value but is supported by a businesses established good reputation.
Never on a balance sheet is "badwill". Buying a business with a bad reputation may be very hard to overcome. It's probably easier to ruin a good business, than to rebuild a bad one. However, rebuilding a bad one can be more rewarding and perhaps more profitable.
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Almost 12 years ago I purchased a then abandon golf course. It went abandon because of the poor guest experience it featured. I worked diligently for over a decade to improve conditions however to this day people still come by and tell me how terrible of an experience they had and they would never play here again. Fortunately at the same time we built what became a popular restaurant. That restaurant ended up carrying the golf course financially for a decade. Then the pandemic hit. The restaurant has been dormant for a little over 300 days and the golf course has paid all the bills. You just never know.