By: Ann Zuccardy

Introductory comments by Royane Real

Author of “Your Guide to Finding Friends, Making Friends and Keeping Friends ”

The following article by Ann Zuccardy deals with the troublesome topic of “Should you do business with friends?”

Is it a good idea or a dreadful idea to mix friendship with business?  Although it may seem very tempting to work with your friend because you already know each other so well, and you get along, you should be aware that mixing business and friendship can in some cases result in the worst of all possible outcomes:  your business venture won’t succeed, you’ll lose money, and your friendship will go down the drain.

Doing business with your friends might mean something as simple as getting your friend who knows carpentry to make a deck for you.  Or it may involve going into a business venture with your long time friend as a partner.

Imagine this situation:  You need to have a particular job done.  At the same time, you have a friend who tells you he is quite good at doing this kind of job.

Here is the question:  should you hire your friend to do the job for you?  Or is there a chance you’ll run into trouble, both with your friendship, and with the work you are trying to have done?

On the surface, it may seem like using your friend to do some work for you might be a perfect solution for both of you. You get the work done, and your friend can benefit financially.

Before you agree to hiring your friend, ask yourself some questions:

Is your friend really capable of doing professional work?  Is your friend expecting to be paid at the going rate for a professional? Are you expecting your friend to give you a discount because of your friendship?

Will your friend give your job the high priority it deserves?

There are many examples of close friendships that have been destroyed over a quarrel about a few hundred dollars. 

Another potential pitfall for long term friendships can happen when two friends go into business together as partners.

It’s true that many successful businesses have been started by two or three friends with a great idea who were able to build up their business from nothing to a multimillion dollar empire, while staying close friends the whole time.  

However, there are many potential problems when people mix business with friendship.   It’s very common for long time friends who become business partners to break up over arguments about who does what, who gets paid what, who controls the finances, and how decisions get made.  Rough times in the business will mean rough times for the friendship.

If the job or business venture doesn’t work out, will you be able to tell your friend he’s fired?  Can you still stay friends after that?  

Before you decide to mix business with friendship, be sure to ask a lot of questions of yourself, and ask a lot of questions of your friend.  Be sure you are making the right decision.

( The introductory comments above were written by Royane Real.  You can learn more about how to preserve friendships in my book titled Your Guide to Finding Friends, Making Friends and Keeping Friends  available at http://www.lulu.com/real )

Feature article:

Doing Business With Friends: Five Tips for Preserving the Friendship... and Your Sanity!

By: Ann Zuccardy 

My colleague, Jane, recently lamented to me an all too familiar story about mixing business and friendship. Jane subcontracted copywriting work out her friend, Joan. Jane’s copywriting business was blossoming (partly in response to her most recent brilliant article marketing campaign) and giving the work to Joan seemed like a win-win for both of them.

As expected, Joan delivered a glorious first draft. The only problem was halfway through the discussed project, Joan suddenly disappeared!

It turned out that Joan was becoming overwhelmed with juggling her own work and the freelance work. The freelance work sank to the bottom of her priority list because, hey, Jane was her friend and she wouldn’t mind. However, as the days turned into weeks, Joan became embarrassed and began hiding from Jane’s e-mail messages and calls. Now both friends were in a pickle!

Jane would have preferred Joan tell her up front that she couldn't meet the agreed upon terms. She didn’t get angry with her friend, but it made her wonder how wise it is to involve your close friends in professional endeavors.

One the other side of the fence is the business person who agrees to do something for a friend for a reduced price or free.

Another writer stated that she believes she gives away too much of her goods and services dirt cheap or free to friends. She’s had experiences doing business with friends in which she thought, "Oh, I'll do this one thing for him and then he will do something of equal value for me."  Often this writer ends up feeling irritated because she’s running short on time and money and she often doesn’t get back what she put into the trade.

Here are some tips to help you no matter what side of the fence you’re on:

1. Your time and services are valuable. Don't give them away. You can volunteer for PTA bake sales, donate blood, or give money to your church, but your business services are not free. You've got bills to pay and a professional reputation to maintain.

2. If you're thinking about doing business with a friend, ask yourself, "Is this a person whose services I would pay for even if I didn't know him? Do I admire and respect the way she operates her business?" I have some friends who are great business people and some who are just great friends (and I'm not convinced they're savvy business people). That's okay. If you can't give an honest affirmative answer to these questions, DON'T do business with this friend.

3. If you choose to do business with a friend, be clear about the project specs, deadlines, and payment arrangements before the work starts. Get it all in writing (e-mail is fine). Be specific!  Did I mention be specific?

4. Frequent check-ins are a must. (E.g., "How are you doing with that dog food project we talked about? Do you need any further information or material from me? How can we work together on this?"). Nip any problems in the bud with constant communication.

5. Listen to your intuition. Does your friend generally keep her promises? Is she a good, clear communicator? How would you feel about her if the business arrangement you’re thinking about didn’t work out well? If you have any nagging doubts, it’s best to err on the side of caution and NOT hire your friend.

In business and in life, communication is key. The people who have the most successful business relationships and friendships will always be those who can speak and write clearly, efficiently, and concisely.

Copyright 2005, Ann Zuccardy, All rights reserved.

Ann Zuccardy, creative entrepreneur, food lover and owner of the Vermont Shortbread Company, invites you to sample a taste of her buttery-rich, authentic Vermont Shortbread. Place your online order for shortbread boxed fresh from the oven and shipped right to your doorstep at http://VermontShortbread.com

Article Source: http://www.many-articles.com 

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By Royane Real

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