Doing business with friends: Why You Shouldn't

**This post is a part of a 3 part series on doing business with friends**

Check out Doing Business With Friends (Part I: Five Things to Be Upfront About & Part II: Why You Should Do Business with Friends)

You've told them what you expect, how you conduct business, your pricing, and tried your best to be the great professional you are. You've weighed your options and now you've come to the decision that maybe this budding professional relationship just shouldn't happen. Here's 4 reasons why you probably should not do business with your friends.

4 Reasons Why You Shouldn't Do Business With Friends:

• Remember that time you guys were at the restaurant and your friend cussed out the waiter even though she was in the wrong? The same situation could happen...with you. You know your friends almost better than they know themselves. If they have an all around bad attitude and has a tendency to be a bad customer, it won't change just because you are his or her friend. You shouldn't do business with them if they a. are overly opinionated, b. don't listen or take advice well, and c. have a problem giving up control. Even though you want to help your friend out and provide them with quality service, it would just be best to tell them "No Thank You" and keep the relationship strictly personal.


• If you know your friend has a problem paying full price for ANYTHING. That should be a red flag to you. You've already been upfront with them about why you charge what you charge and you may have even given them a discount. If they can't see the craftsmanship in your work but only see dollar signs, your better off providing them with the information to someone else.


• You guys are getting ready to go out. Your friend has gone through 12 outfit changes and now you guys are about an hour behind schedule. If you are in the business of time or need quick and sound decisions, it might not be a good idea to do business with your indecisive and unpunctual friend. They can come off as being unreliable and a headache, to which you don't want.


• This one I'm going to keep it simple. Don't do business with friends if the two of you cannot differentiate between your personal relationship and your professional relationship.

Yes, they are our friends. And yes we love them and want them to have the best, but sometimes the best when it comes to business is someone else's. But it is up to you if building a professional relationship with your friend is something you want to do, just make sure you weigh all the possibilities.

The Unemployed Entrepreneur

Doing business with friends: Why you should do business with friends

**This post is a part of a 3 part series on doing business with friends**

Check out Doing Business With Friends (Part I) 5 Things to be Upfront About

You've been upfront with them about your pricing, what your job description entails, and how they can benefit from hiring or purchasing from you. Now it's up to you to decide whether or not you should actually conduct business with your friends. Here's 3 reasons why you should conduct business with them.




3 Reasons You Should Do Business With Friends:

• Comfort- when you start a business relationship with a stranger you have to get to know them and become comfortable with interacting with this person, even if it's a 5 minute transaction, and vice versa. With doing business with friends, the comfort factor is already there. Sure you have to get them acquainted with how you do business, but at the end of the day there is less time consumed with having to get to get to know this client.


• Loyalty- remember the post I did a while back about professionalism and creating loyalty? the reason why it's smart to be the best in your field is to create brand loyalty. Other than your deep desire to be a business owner, you conduct business to build a network of loyal customers. The best thing about doing business with friends is the instant loyalty you receive from them.


• Word of Mouth- things are always better when you share. When you do business with your friend, providing them with exceptional service or a fantastic product, more than likely they are going to tell everyone they know about you bringing in new business. Word of mouth is easier to come by when a great business connection has happened.

In business, we all strive to have "perfect" clients/ customers. The ones who you have great chemistry with, who tells all their friends-coworkers-and family members about. You know the ones who are loyal to you and your brand. The beauty in doing business with some friends is they become those "perfect" clients who make our jobs that much easier.

Stay tuned for tomorrow's post, Doing business with friends: Four reasons why you shouldn't.

The Unemployed Entrepreneur

Doing Business with Friends: 5 Things to be Upfront About

**This post is a part of a 3 part series on doing business with friends**

Lately I've been dealing with a dilemma that I am sure a ton of entrepreneurs and business owners have to deal with, doing business with friends. In some instances, our friends can be our best clients! The epitome of a quick decision maker and great chemistry. In other instances, working with our friends can be our worst nightmare. They are indecisive and down right disrespectful. It makes you come to a decision: should you do business with friends or should you be very selective with the friends you do business with? The first thing you should do is be upfront with them about everything!



5 things to be upfront about when doing business with friends:

• When doing business with friends, most of them expect the dreaded "homeboy hookup." This is when they expect you to conduct business free of charge. Although there is nothing wrong with giving your friend a freebie, you have to remember that once you give them that handout you pretty much ALWAYS have to give them a handout. Be upfront with your pricing for services rendered or product. Break it down for them as to why you charge what you charge and then go into details as to what their particular service or product entails.If they still look confused, provide them with a market compare sheet for other similar businesses to yours (i.e. other event planners/ managers, other tailors/ designers, other graphic designers, etc)


• What your pricing pays for. When our friends try to talk us into providing them with the "homeboy" discount, usually they are only thinking about themselves and their pocket. Sadly, these same friends don't realize that you too have bills to pay and things to do as well. Help your friend understand what your pricing not only includes, but what it has to help pay for. Now they don't need to see your entire budget breakdown, but they should know that you aren't 100% pocketing the money.




• Knowledge. Our friends come to us because they know we have the knowledge to provide them with a quality product or service. Conversely, sometimes when our friends tell us we are overpriced or out of budget it is because they do not know the mechanics of what your position entails. This is due to a lack of knowledge. I've had associates tell me that I make event planning look easy just for them to plan an event for themselves and come back to tell me about the hard time they had planning said event. Knowledge. Providing your friends with your knowledge base will help them to understand why you are in the business you are in as opposed to them being in that business.


• When we do business with friends, the lines will easily get blurred. Because you have a long history and extensive background, what is acceptable in the friend zone may not be acceptable in the business zone. Let your friends know upfront what you will tolerate and what you won't. Saying this in the beginning sets the tone for how the entire business transaction will take place.


• If you feel like doing business with your friend is going to be a burden, stress, or bad business...JUST SAY NO! You friendship, business, and stress level will thank you.

Doing business with friends can be great, but it can also be equally stressful and frustrating. Just before you do business with friends, let them know the right information upfront. Treat them like you would any other client or customer. Just because you two grew up together doesn't take away from the type of service and business YOU need to do.

Stay Tuned for tomorrow's post, "Why you should do business with friends."

The Unemployed Entrepreneur