XYZ Hospital had been the brainchild of Dr. Cureitall, and he had been fully involved in the day-to-day running of the hospital until he decided to retire. While the real cost of the land, building, equipment and other liabilities was around $70,000, it fetched over $180,000 in a takeover.

In the example stated above, the additional $110,000 can said to be the value of the ‘goodwill’ of the hospital. So what is goodwill? When put in simple terms, it is nothing but the value of a business in excess to the value of tangible assets and liabilities. It includes the favorable reputation, strong client base, intellectual property and potential of making profit. Needless to say, professional goodwill or commercial goodwill (goodwill related to the institution or profession) and personal goodwill (goodwill related to an individual) play a very important role in business at every level of growth – when it is successful, in trouble or for sale.

Just as a good reputation is vital for the social standing of a person, goodwill is vital to the long-term success of any business. Some of the ways in which business goodwill affects a business are mentioned below.

• Goodwill in a business increases the number of return customers and recommendations based on their pleasant experiences.
• A well-established business goodwill increases the chances of loan sanctions from a bank and the interest of potential investors.
• It strengthens the business networks, opens new avenues and creates opportunities for expansion in business.
• In case of a blunder or mistake, people are more forgiving to a business based on the goodwill it garners, much like the mistakes of an individual with a ‘good name’ will be given the benefit of doubt.
• In any business, goodwill provides ammunition against resistance and sabotage.
• The equity value and the accounting value of a business are greatly affected by the goodwill of that business.
• As mentioned in the beginning of this article, goodwill is one of the major intangible assets of any business. Greater the goodwill of a business, greater the value of its intangible assets and thus, greater the acquisition price in a takeover.

Goodwill in a business takes a considerable amount of time, efforts and resources to be developed. The key factors for developing goodwill in a business are listed below:

• Quality Product and Services: Nothing is more important for the life of goodwill in a business than the standard and quality of the products and services it offers.
• Unique Selling Proposition: A good business always has a USP by which it is identified – there has to be something in the business for people to be attracted to it.
• Satisfied Customer Base: A customer is more likely to return or recommend the services of a business if he/she has a pleasant and satisfactory experience in the first instance. Following good business ethics goes a long way in impressing customers and investors.
• Marketing and Advertisements: A business which is under the spotlight for the right reasons creates goodwill for itself. Offers, discounts and even Samaritan deeds in a business ensures its place in the good books.
• Strategy and Management: Goodwill has to be deliberately developed and it is possible to do so only if the employees are well-trained, reputed and capable. A good strategy or ‘game plan’ is essential to keep the business on track and motivated.
• Innovation and Expansion: For a business to be viewed as valuable, it has to be one step ahead of its competitors. Though it sounds clichéd, stagnancy has no place in the goodwill of a business.
• Profits and Gains: Customers and investors are more willing to deal with a business if it is profitable or if they believe that it has the potential of making profits (given a chance).

Once goodwill has been developed, there is a constant need to keep up and protect it from becoming stagnant or turning negative. But the benefits of goodwill in business make all the efforts worthwhile and satisfying. The adage ‘the whole is greater than the sum of its parts‘ reinforces the importance of goodwill in a business – even a business with low real value can increase its market value if it can boast about a significant value of goodwill in the business.

Decentralization: Inspecting the Tradeoffs
Decentralization often comes into picture to tackle the disadvantages of centralization. Although a decentralized command structure does help to overcome the cons of autocratic management such as lack of ownership and authority, as you go down the hierarchical organization structure, it has its own unique set of pros and cons. Let us explore these merits and demerits of decentralization and put into perspective the tradeoffs involved when adopting this management concept.

We have seen both the advantages and disadvantages of decentralization. That hopefully makes clear what the tradeoffs could be in adopting this concept in an organization. However, most disadvantages of decentralization can be overcome by controlling the degree of authority delegated to the lower levels of the organization. Both centralization and decentralization have their extremes which is why, the key is to avoid those extremes and take the middle road. A combination of both concepts and a conscious deviation from theautocratic management style is recommended as a plausible strategy. Striking a balance between how much independence is given to individual business units and what kind of decisions remain under the central command could lead to a successful strategy.

✔ Place of the event (how far from your catering location, transportation options, whether there will be on-site catering, etc.)
✔ Starting time and duration of the event
✔ Expected turnout of guests
✔ Guest preferences (if any)

Gather Competitive Intelligence

Once you have the above information, the best way to begin with the pricing estimate will be to scout the market rates for an event of a similar nature. This can be achieved with a few phone calls to some of the local catering companies. With this knowledge, you can be sure that you’re not going to quote above the market rates. In addition, while determining your own pricing strategy, you have a good yardstick so as not to quote lower than the norm. Thus, equipped with the upper and lower limits of pricing in terms of market rates, you can now begin your own estimation and arrive at a competitive pricing.

Factors to Consider During Cost Evaluation

If it is your first venture into the catering business, you need to evaluate the costs thoroughly before fixing the price. You need to determine how much you will end up spending, so that you know how much you need to quote to be able to at least “break even”, that is you must at least make as much money as you would spend. Otherwise, it would be a loss-making proposition. The following factors must be considered to arrive at the break-even cost.

• As per the number of expected guests, chart out a “feasible” menu. If you’re going to serve gourmet food for very few guests, the high cost of ingredients may not add up to a reasonable pricing. Some dishes will make sense only if there are a good number of guests.
• Calculate cost of your food (include cost of all ingredients for the dishes in your menu and the labor cost).
• Extra costs include transportation costs, utility costs including that of equipment, propane, gasoline, ice, cleaning products, and cost of employing extra helping staff.
• In case of on-site catering, you may have to include rentals, insurance, etc.

Thumb Rules

Always include 10% extra food than required to manage contingencies. Include this in your costs. It is customary to fix the menu price at three times the total food cost. For example, if a menu item costs a total of $10 to prepare, then the menu price would be $30. Depending on whether your customer is price-sensitive and how much your own desired profit margin is, you may negotiate or choose your own margin percentage. Refer to your competitive rate research information to finally judge your own desired profit percentage.

How to Price a Catering Job

Pricing can be fixed in at least 3 different ways, as follows.

1. Fixed Pricing: With fixed pricing, you would assign a price to your menu item, do this for each menu item and charge the customer on a “per-plate” basis or platter basis. Check if this model suits your catering assignment. Needless to say, in this case, profits would be determined also on a platter basis.
2. Tiered Pricing: This is very similar to fixed pricing but you can pass on the benefit of numbers to your customer. Essentially, more the expected turnout, lower will be the price of each item. You can have 3-4 such tiers with the minimum number of guests deciding each tier price. For example, for greater than 50 guests you could charge $20 for an item; for greater than 100 guests you could charge $18 for the same item and so on. This can be a very cost-effective model provided there is a great turnout of guests expected.
3. Customized Pricing: With the earlier methods, the customer knows upfront what your charges typically would be; however, with custom pricing, you have the freedom to decide the menu and pricing after the customer briefs you about all the details of the event. However, it is still beneficial to have a pricing guide ready for reference even for custom pricing. It will enable you to approximate the estimates better.

The above guidelines for determining the pricing for a menu are not stringent. It is just information about how pricing for a catering job is done. You will in fact need to be flexible if you’re serious about being in the business for a long time. There are many other factors that influence pricing such as the type of customer, your immediate competition in the same area and how established you are in the business. If you’re well-known for the quality of food, customers may not be very rigid about lowering your prices. On the other hand, if you have your close competitors quoting below your rates, you may have to negotiate harder so as not to lose the deal. You may have to provide additional “frills” to add value and differentiate your catering service from that of your rivals. If you’re very new to the business, you may well have to incur losses in your first few assignments just to prove your worth and establish your presence.

Thus, the ultimate profitable pricing strategy is a mix of several factors. Keep an open mind and be optimistic about the outcome. Once you know your market, your client base, etc., you will gradually work out the pricing strategy that is optimum for your catering business. Take each assignment as a challenge and be willing to learn from your mistakes as the catering business is certainly not for the faint-hearted. Many unexpected challenges may arise in the form of lesser than expected guest turnouts or shortage of food during service, weather delays, etc. Once you start your catering business, only experience can help you find your foothold in this industry. With some experience, you will be able to predict and manage most risks and contingencies better and plan everything in a cost-effective manner.

If you’re still using the first resume format you learned in school, no wonder you’re not getting call-backs. The rules have changed, and you may have been doing it wrong all this time. You’re competing with more people than ever before, and your resume is the employers’ first contact with you – make it count. Present the information they want in an easy-to-read format, and the hiring manager is more likely to read the whole page instead of skimming and tossing.

Customize the resume to the field

Bankers should stick with formal black and white, but creative fields generally prefer to see a bit of… creativity. Showcase your talents right there on the page. You have to make your resume stand out from the other thousand in the pile, some of which are better-qualified than you. This is not an ad for a nightclub though, so keep it tasteful and somewhat subtle. Make it reflect the corporate climate of the company you’re sending it to.

Customize the resume to the job

If the job listing focuses more on skills than education, put your skills section first. If education seems more important than experience, lead with your Education section. Objectives are no longer necessary unless the job listing specifically asks for one. Make sure the skills and experience you highlight, match the skills and experience listed in the job ad – use the same words.

Digitize your resume

Internet-based job applications generally require you to upload a digital resume. Don’t use the same file you print your hard copies from – use a web-optimized font like Georgia, and increase the space between the lines to about 120% to keep it readable. Don’t use indents on a digital resume, but keep your margins well-defined and clean.

Combine sections

Use your Work History section to highlight specific skills you developed or showcased at each job, and any accomplishments or awards you earned. Be specific – don’t say that you’re “intelligent and efficient,” offer examples of things you’ve done that prove it.

Scrap the “Hobbies and Interests” section

For the most part, employers are concerned about how you’ll benefit them – your comic book collection doesn’t figure into the equation. Clear your resume of all references to your cat, your favorite movie, or who’s going to win the Super Bowl. The only time your hobbies should make an appearance is if they directly relate to the job in question. For example, if you’re applying for a job with a non-profit pet-welfare organization, by all means mention the many weekends you volunteered at your local shelter.

Put your name at the top

It sounds like a no-brainer, but people sometimes get carried away with the creativity and treat the resume like letterhead. True, your letterhead may be beautiful with the contact information at the bottom or down the side, but imagine this: the hiring manager remembers your resume, and wants to show it to her boss. She leafs through the stack on her desk, scanning the names at the top… and doesn’t see yours. She assumes it was lost, and moves on to the second-best candidate.

Don’t list references

For better or worse, the internet is your reference now. You will be Googled prior to the interview, so maybe take the New Year’s Eve pictures down from your Facebook page. If you have some truly impressive references, print them out and bring a hard copy with you to the interview.

Still, no matter how perfect your resume is, there’s an awful lot of competition out there. Apply only to jobs that you are qualified for – don’t waste your (or the hiring managers’) time shooting the moon, because there are applicants out there who actually are qualified. You won’t get that job at NASA with a high school diploma, no matter how lovely your resume is. But keep networking, keep applying, and stay relevant. You’ll find your perfect fit yet.

While looking for a job is an important activity, it is much more important to consider what to look for in a new job opportunity. Gone are the days, when you’re fed up of what you’re doing and move on to the next available opportunity without thinking through with a long-term perspective. We need to constantly change our strategy to adapt to the currently tough job market.

A few days into your new job and realization hits you that you were not cut out for it and you’re looking for the next opportunity. Sounds familiar? Let us analyze some reasons for which you might quit a job and discover what to look for in the next opportunity that is presented to you, so that you don’t find yourself in the process of looking for work regularly.

Things to Consider Before Switching to a New Job

Desirable Job Profile

How often has it happened that the job description looked pretty exciting when the Human Resources (HR) department called you with the “opportunity of your dreams”? All other things like the compensation package and everything else was even better than what you had and you grabbed the offer. A few days into your job and you realize what you’re expected to do is vastly different from what you were told! This is a common mistake with first-timers who’re not “seasoned” job hunters. You must be very careful when discussing the job profile. Ensure that you speak to the right people within the organization. The HR of an organization often has a disconnect with the actual project team (or the department which actually wants to hire a candidate) when it comes to detailed job profiles. Add to that the pressure of meeting “hiring targets”, you don’t want to take only their word for it. At the end of the day, the attractive compensation, the brand name of the Company and all of that hardly matters when you’re not going to be looking forward to coming to work every day.

Make sure that you ask about the job profile during the technical interview rounds or on-site rounds when typically the panel consists of people you might actually be working with (colleagues or reporting managers etc.), once you join. It is customary to ask the candidate if they have any questions. Grab the chance and ask what exactly will be the job description. You must probe enough to know what it’s going to be like for you on a typical day in office, in terms of responsibilities. Make this an important factor to consider while accepting or rejecting the offer. You need to be clear about what you want to do careerwise, map the offered job description to your goals and come to an informed decision. You will most likely not get exactly what you’re looking for, but the job should at least be a stepping stone to where you want to go instead of leading to a completely different career path. Again, depending on your experience level, you must weigh the pros and cons. If you’re a fresh graduate with little or no experience, you might want to make more compromises to work your way to your goals. However, if you’re a seasoned professional, you might become more rigid with your expectations. Take your time on this point and you will reap the benefits of this consideration not just in the short term but also in the long term.

Long-term Career Prospects

Not to repeat the above point, but it is essential to ask yourself, “Where do I see myself in this organization 2 years from now or 5 years from now?”. Each day at this new job must take you closer to your career goals. If you’re not sure about this with the information you have, ask around. Check within your network of colleagues and acquaintances who are in similar job profiles and ask where it is leading them. Ensure that it is not a stagnant profile in that it should offer enough scope for growth opportunities within and outside the organization.

Reporting Hierarchy

Based on the position offered to you, ask about your supervisor, peers and subordinates in a manner in which to understand their strengths and weaknesses. Check if you will have a colleague who will help you in your first days in the company with regard to the work and the work environment.

Financial Terms of Employment

• Compensation Package: You might say, “come on, of course I know this is an important factor to consider, it’s a no-brainer”. But how often do we really study the detailed compensation plan that we’re offered? Rarely. Most people look at the gross annual compensation figure, find it above expectations or compare to their present earnings and get excited at the figure in the offer letter. When the first salary is credited to your account, that is when you scurry back to the detailed compensation plan and realize that a lot of the “deductions” are not obvious or standard or that a good chunk of your compensation is tied to your performance (often referred to as “variable component” of your gross pay or “incentive pay”).
• Other Perks: Then of course, you also realize that a lot of the standard employee perks are available only after you complete a “probationary” period in the organization. Most of this data is not even in fine print but quite well explained in the offer letter (more like a magazine with several pages of information) and which you conveniently ignored in the excitement of landing your dream job!
• Appraisal System: The appraisal system of the company is also something you must inquire about, before accepting the offer. It varies from organization to organization but quite typically, decides when you will be due for your next compensation review, based on a certain set of performance factors. Again, a question for your reporting manager and not just the HR. No harm in checking with your contacts, if any, within the organization. Knowledge of the performance factors will equip you to be adequately measured right from day one. You do not have to wait until the first feedback session to discover you were supposed to be doing several other things to be eligible for a good appraisal. Do not take this lightly as it will not only affect your morale but you will find it difficult to focus on your work due to the lack of motivation.

Work Environment

• Company Culture: The company website, for most reputed companies, will give you enough information about the company, its financial standing, its leadership and management and even the corporate culture and values. But you need to ensure that the values are actually applied in the day-to-day work environment. Make use of the time that you spend in their office during interviews to chat up with other employees (perhaps at the water cooler or cafeteria) and see and judge for yourself whether the values are manifested. If it’s a company with a huge population of disgruntled employees or repulsive management policies, it will easily present even in casual conversations. You will need a certain degree of emotional intelligence to make this judgment. However, a major reason for employees to leave organizations, is a major mismatch in the company values and its implementation, so give this careful consideration.
• Work Location, Timings, Travel and Transportation: Ask specifically where you will be deployed on a permanent basis, whether you will require to travel often, whether the job involves extended overseas travel, etc. In case of a local location, ask if the company provides transportation or reimburses conveyance expenses, etc. Also inquire about the work schedule and whether there’s frequent overtime or night shifts, etc. These factors are often dependent on the nature of your work, for example, a marketing job generally involves traveling outside the work location on a frequent basis. Based on your other responsibilities and priorities in life, or any other location constraints that you may have, these considerations will greatly impact your final decision.
• Work-Life Balance: Inquire about the leave policies, flexibility in work timings and the availability of a work-from-home option. This is especially important if you’re a working mother and if your baby is quite young. Similarly, if you have dependent parents with serious disabilities, then you may not want to commit to a job that entails frequent overtime, overseas travel and client pressures leading to inability to remain absent from work even for a couple of days. Also, ask around if there are any non-work events happening from an employee welfare perspective. For example, whether there are fun activities and outings happening on a regular basis to bond with colleagues and superiors, outside the work environment. Based on your personal constraints, ensure that you will be able to get a good work-life balance.

The above list provides pointers to what you should look for in your next work opportunity. However, there are certain things you can do to attract the right kind of employers even before you’re being interviewed by prospective employers.

Craft a Good Resume

• Reflect your desires in your resume. Do not go overboard with your expectations, instead paint a clear picture about what you’re looking for in your next job and highlight it in your resume.
• Having expressed your desires, ensure your resume is tailor-made to mirror exactly those kind of skills that would be required for the kind of job you’re looking for. Try and differentiate yourself from your competition in those specific skills so that you gain an advantage in the screening process itself.
• Highlight educational achievements and certifications that relate most to your desired profile. This will help even online job search engines to deliver the right kind of jobs into your email.

There are several tips for job search to help you in your quest for a new job. With proper planning and preparation, it will be possible to convey your expectations to prospective employers and hopefully, you will find something that you enjoy doing the most.