Can there be a touchier subject in our home business operations than doing business with friends and family? With such a small home-based business it is hard to get away from it, but it can also be a source of stress and trouble. What works and what doesn’t work? Are there things we can do to help minimize problems? Are there certain kinds of businesses that are better-suited to doing business with friends? How can we have healthy boundaries and listen to our personal comfort-level?
All the experts say that good business and sales are about building relationships; not to mention all those pyramid schemes rely on individuals contacting their family and friends in order to broaden the sales base. Perhaps this is one of the reasons we can be so wary of involving friends in our home businesses. It can feel a little strange or we might wonder if we are lacking in credibility if our strongest customers come from our friend circle.
There are benefits of doing business with friends, however—they already know and trust us and they are our warmest market. They also might be willing to introduce us to some of their friends and support us in the early stages of our business before we get our business up to speed. These can all be really great pluses. However, friends might also ask for steep discounts, or expect special considerations that we feel pressured to give and that don’t help our businesses. Not to mention there is the possibility that business challenges can get in the way of our personal friendship.
It takes a lot of skill and focus to make sure that business doesn’t get in the way of friendship. Strong boundaries and listening to your gut when it comes to what feels right or uncomfortable are important too. Some find that using invoices, statement, contracts, etc. with their friends just like they do with non-friend clients and customers help. If your friend squawks, you can say that you have to have a paper trail for tax purposes and that you need to do things “by the book.” A good friend will understand that you are trying to protect them as much as you are covering your own bases.
Also: Unhealthy Relationships
Relationships are Important in Business–Don’t Abuse Them