Mike is a dentist with a heart of gold. He doesn’t just offer
teeth cleaning, check-ups, fillings and other dental services
at a cut rate to his relatives and their children. He doesn’t
charge them anything. If his two brothers, in-laws and
dozens of cousins take him up on his generosity, that’s a lot
of gratis work.
Smart decision? From a business perspective, maybe not.
He still has to pay the people who help him do the work and
schedule and confirm the appointments. It costs him wear
and tear on his equipment and he must buy the supplies he
uses for these appointments. It also takes him away from
working on paying customers. But it’s a personal choice he’s
made as to how he runs his business.
With so many people going into their own businesses, this
is an issue to think about. Whether you’re a one-person consulting
business or sell a product or service, what would you do
if someone you’re close to expected your service or product
for free? Will you feel obligated to do things you don’t
want--and resentful about it?
In the dentist’s case, he was swayed in part to give it
away because it’s what people expected. Relatives hinted
or came right out and said special--free in this case--treatment
was what relatives should do for each other. Rather than
create hard feelings, he went along. (It’s interesting to
note that several of them who had retail establishments did
not give him whatever he liked in their stores.)
Other business people have a different philosophy. Some
have special discount rates for friends and family. Others
simply won’t do business with friends and relatives because
of the potential headaches.
Whatever your business, you need two things: 1. a clear
policy on how to deal with friends and relatives and 2. to
communicate that policy up front.
You may still ostracize some people who have expectations
different from the policy you establish. But it’s your business
and reasonable people should understand--but not always.
You could end up being the hot gossip topic at the next family
reunion.
Other potential problems that could develop include:
A paying customer or client who becomes a friend.
If you’ve become chummy with someone who has been paying
you, the new friend may now expect your service or products
for free or at a discount. Addressing this by talking about
your policy, will be touchy but necessary, and is a discussion
to have before you present this person with a bill. You may
even make a conscious choice to not get that close to customers.
Working with a friend that puts a strain on your relationship.
For example, if you are a consultant, your friend may not
like your counsel. Or you may not like their attitude.
They can be a nice friend but a difficult and demanding
customer. If you don’t want to lose the friendship, you
need to address this and potentially end the business relationship.
It’s presumptuous for people to expect you to give away
your services--or even discount what you do. But they will.
So you need to set the terms early on or pay with a misunderstanding--and
maybe more--later.
© by Andrea Kay
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