With friends like you....

Ah, the old adage: "With friends like you, who needs enemies?!"  It speaks to the hurt you may endure when a friend does you wrong.  There are many great small businesses, which were started by friends and have thrived. But you also hear horror stories about how a business and a friendship was lost.

Another angle is when you start off as a client and a vendor and become friends.  The down side can be allowing receivables to slip off and guilt over charging  from the "rate card".

Here's a third scenario: ignoring your friends when a client is around.

Let's address these one at a time.

If you are considering going into business with a friend, make sure you put everything in writing.  Do not think your friendship puts you above security and organization.  Establish your roles.  Who is the idea person and who is the implementer?  Who is the sales person and who is the collector? What is the revenue share and how much will be reinvested into the business?  You may also want to consider taking online personality profiles to see if you would mesh in a business environment.  If you think you can handle it, then go for it.  But remember, money and friendship don't always mix.

It's a great thing to develop relationships with your clients.  It makes it harder for them to fire you when the competition comes around with a stronger offer.  But on the other side of the coin, it makes it harder for you to say no when they ask for a payment extension or some freebies/favors.  It takes discipline to say no when a client/friend asks for a favor.  Be flexible when you can, but remind them that this is hurting you and needs to be a one-time favor.  Again - the best thing you can do is to put everything in writing.  It shows up front that you are a professional and keeps everything above board.

Finally, if you really value your friends, be loyal to them.  If you are out with your friends and you bump into a client, introduce them.  It doesn't matter if your friends are being a drunk idiot or not.  They are your friends..the ones you can count on through thick and thin.  Your clients will understand if your buddy has his underwear on his head and a shoe missing because somewhere out there they have a friend who is doing the same thing!

So the moral of the story is this: Friends and business make strange bedfellows, but if handled properly and with respect and constant honest communication, can be a formula for success.

Until next time my friends,

Pete