I wrote earlier today about some of the issues that pop up when some of our clients and customers are our friends and family members. I thought it would only be fair to discuss another side of this issue—when we choose to do business with friends as vendors, suppliers, or colleagues. There can be all sorts of issues that pop up when we are the ones doing the purchasing or trying to partner in the business arena with those individuals we consider to be our good friends.
Using friends’ businesses as vendors, suppliers and partners in our business endeavors can seem to make good sense. We know and trust each other and we feel comfortable working with them—plus, we might be able to work out incredible deals or even trade work and not have to exchange money at all. These can be major benefits to doing business with friends. We might even assume or expect that we will get preferential treatment and better service because we are friends. Unfortunately, the opposite can happen too.
Our friends may assume that we will understand if they put us off, give us the less expensive materials, or tend to new, paying customers first. We might be the last ones on the list to get service, payment, etc. and they may rely on our friend status to give them some wiggle room. Our friends may also take advantage of that friend status and put a strain on our relationship because of the business relationship—or we might be tempted to do the same thing.
Even you do choose to do business with friends you might want to get bids and quotes from other businesses as well. At least this way you will know where you stand and whether or not you are getting a good deal, and what you can reasonably expect. Not to mention, if things fall through you will have the information to make a switch. It is also a good idea to treat business transactions as you would with any other vendor or supplier—get things in writing, make sure you save records of the transactions, etc. Even if you are doing a trade for products and/or services, make sure you keep accurate records and official “books” so that your business integrity does not suffer. Just because the two of you are friends does not give you license to break the law or compromise your business. Additionally, some people find it healthier to keep business talk during work hours and not let it seep over into social time. While this may not always be possible, it is still a good idea to keep some balance and boundaries around the friendship and the working relationship.
Also: Relationships are Important in Business–Don’t Abuse Them