QUESTION: Can you please write how you can get family and so-called friends to really support your business? The problem I have is that everyone wants, or even wants me to work for free, big discounts. Right now this is creating tension because I have family and friends who have owed me money for months and I’m talking about jobs that I’ve already discounted. I have to pay my bills and times are tough. If I follow them the thing will never figure out and I’ll lose. I don’t want to disregard them, but it’s out of control now, especially these days.
– Andreas
BUSINESSWISE: There is a mantra that I post repeatedly on all of my social media platforms to remind my audience of the exact principle that you highlighted in your question. I share them below with the hope that you and my readers will get this message across in your own spaces, especially online areas like WhatsApp and your personal Instagram where your family and friends hang out for awareness of the importance of being appreciated and paid make for services rendered.
Pay your lawyer and doctor friends
Pay your plumber, electrician, and contractor friends
Pay your graphic and make-up artist friends
Support family and friends who run small businesses by respecting how they make money
Pay them on time and in full and stop pushing them for discounts or a special price.
Unfortunately, you haven’t told us what type of business you are running or how much you are owed for what period of time, so I cannot offer specific solutions to these predicaments.
The reality is that we are in tough times and your friends and relatives may be under financial stress and looking for a way to save money, including using their network of colleagues and relatives for free or discounted services.
Generally, one of the easiest and best ways to get family and friends to respect your business is to maintain formality and professionalism in every business transaction, from receiving a business inquiry to post-processing. Treat them like VIP customers and make sure they know beforehand that they are acting as paying customers.
I’ve seen cases where business owners are very casual with family and close friends and deliver substandard service with random schedules and without professionalism, which in turn makes their connections feel undervalued and eligible for discount or free services. Provide them with great service and create an exceptional customer experience, and this can well be a turning point.
This is easier when your customer journey is properly defined and your processes are fully documented. So, if you haven’t already completed this, now would be a good time to get this job done.
The good news is that this documentation is valuable as you scale the business to improve efficiency, productivity, quality control, and customer experience and satisfaction, among other things. You shouldn’t have to explain to your relatives or friends that you are running a business, or that you have expenses, or that you simply cannot afford to work for free, but depending on your relationship and your personal preferences, you can choose what works best to you.
Here’s a practical example of how this would work if you were a graphic artist and a relative reached out to you on WhatsApp to ask if you could create a logo. You would answer with:
Hello Jane,
Thank you for asking this question and for thinking of my company, XYZ Graphics, to bring you this service. Yes, we can definitely create a logo for you. Our standard lead time is three days. To get started we require a 50% deposit of $ …… and the submission of our completed short form attached below. If you have any questions, please let me know and I would be happy if you arrange a call as soon as possible so we can discuss it.
Thank you again Jane! I look forward to serving you.
If your relative or friend agrees, do the same as you would any other customer. Submit that invoice, get paid, and deliver that “wow” service and after-service care.
However, let’s say you’re not interested in Jane as a customer, or she can’t pay, then you can simply refer her to another colleague or resource. Remember that her needs, financial situation, or even maturity can likely change over time and she can prove to be a good client in the future. You never know what’s going to change and when, so it’s always a good idea to treat inquiries as customer leads or prospects.
In my experience, good friends and a supportive family can play an important role in the development of your business, so the goal should always be to strike a balance that is mutually beneficial when it comes to doing business with them.
Good luck and one love!
– Yaneek Page is Market Entry USA Program Director, Certified Entrepreneurship Trainer and Creator and Executive Producer of the TV series The Innovators and Let’s Make Peace. Email to [email protected]
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