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Doing Business With Friends - The Challenge of being an Entrepreneur

Doing business with friends and family can be a challenge, especially if they are expecting a freebie. Here's a solution!

This post is my response to an email that I received from a web designer:  

"Help!  My friend asked me to design a site for him.  I have already put in ten hours, now he tells me he thought I was doing it for free.  What do I do?!"  

As a creative entrepreur, I felt her pain!  The following is my solution:


CAN YOU DRAW THIS FOR ME?  IT’LL BE REAL QUICK!

At least once a week someone will ask my artist husband, Drew, to draw a ‘quick’ design. 

“Oh, it should only take you a few minutes to whip this out.  I’ll buy you lunch for it.”

There’s no such thing as a “quick” anything when it comes to art and design.  And though we love our friends and will do most anything for them, we can’t just whip out a $2,000 piece of art and trade it for a $20.00 lunch.  We’d be in the homeless food line quicker than you can say “free art!”

As creative entrepreneurs, Drew and I continually have to figure out how to keep the cash flowing.  Every hour Drew puts into sketching and painting is an hour that must be paid for.  Our mortgage depends on it!

It’s flattering when someone loves your artwork, but it can be a drain doing business with people close to you.   For some strange reason, we feel obligated to give those close to us a cheap price.  But when we do so, we basically give up a weekly paycheck for a friend.  I don’t know many people these days who can afford to do that!

Here’s what can go wrong if you don’t take control of doing business with friends:

Let’s say your buddy Jai asked you to create a logo for his new yoga studio.  He was a fan before anyone else knew that you could draw.

At first, you’re excited and you’re flattered that he asked.  You start brainstorming, grab your sketchbook, and get to work on it. 

But, you forgot one very important thing:  to give him a price quote, first, to make sure he can afford you.

Later, and after the work is almost finished, you realize that you don’t want to have the uncomfortable discussion of how much he owes you.  So you suck it up and give it to him for cheap or free.  He has no problem with that!

You begin to feel resentful, because you put off a paying job to do this for your friend, and now you don’t have the money to pay for your kid’s after-school program.  After kicking yourself a few times, you promise that this will never happen again. 

Here’s an easy solution:

When a friend asks you to quickly draw up a masterpiece for their car washing business, BEFORE you whip out your sketchbook, work up a price quote for them. 

Put it in writing so that there are no unanswered questions or assumptions.  Handle it like a professional, even with friends

Consider offering a “friends and family discount” of 10%.  In your quote, show where you’re saving them money, and then ask for a deposit of 50% down before you begin the work.

If they decide they don’t want to pay your price, it’s their choice.  You can then move onto a project that does pay you.  The friendship is still intact.

And in the future, always assume that your friends want to support your business.

A good friend will want to help you.  The best way they can do that is to buy from you to help keep you in business.  There are many cultures that operate around this very idea, which is why those cultures tend to do well in business.

The next time a friend asks you to work for them, let them know that you appreciate that they are helping you to stay in business.

The salary-paid employees in our lives don’t always understand how much effort it takes to make it as a creative entrepreneur.  Tell them that they are helping your business!

Then write them out a quote and show where you’re giving them a discount.  They’ll be happy to see they are getting a special price, and they can feel good about contributing to your career. 

That’s what good friends do.

Maria Brophy

PS: Please email me your questions about the business of being a creative entrepreneur for my next article, at consulting@mariabrophy.com.  Thanks for reading!

PPS: For more creative entrepreneur tips, please visit my blog!

 

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Sicmarc May 9, 2013 at 07:35 pm
Bring back the bowling alley!
Tom Barnes May 9, 2013 at 03:05 pm
Linda, The hypocrisy of opposing subsidies for Spizzirri and the Miramar after you and your companyRead More had the city spend a million on your LAB project is almost laughable. You also accepted an indirect subsidy from the city in the form of parking concessions for the Casino. The irony of big business opposing subsidies for others while accepting them for themselves is long remembered by San Clemente residents. Some consistency would be refreshing.
Lindsey Hanson May 8, 2013 at 03:31 pm
Linda you were 100% okay with such subsidies when they were offered to you. Heck you sued the cityRead More after the residents shut your project down before you could reap the benefits of the millions in subsidies you were set to gain. If you're banking on the residents of San Clemente forgetting your personal and direct involvement in the very same practices you can grantee I'll help remind them. See the thing is I agree with you about giving handouts to folks like YOU and Marc Spizzirri. It's DEAD wrong. The very reason I fought so hard to shut down YOUR PDN. So now that we all remember your involvement in the very same kinds of activities you are protesting we can clearly see why you are upset. You've done such a nice job with the Casino. It IS unfair if they grant subsidies to Mr. Spizzirri after denying you. That in itself is enough reason to be upset and a legitimate reason to protest. But, you cannot deny it is part of your beef with the situation.
CC May 1, 2013 at 11:46 am
Frank Mitchell has the correct FACTUAL not emotional response. Ann D to call yourself a "lovingRead More citizen" and name someone a bigot in the same paragraph shows your true colors. If you truly feel that having non-english speaking children is not a burden on our school system then I suggest you go volunteer in a local elementary school on a weekly basis as I have done then you would be a true "loving citizen"
Ann D May 1, 2013 at 01:58 am
It's just a difference of opinion on where tax dollars should be spent. As a taxpayer I feel myRead More hefty taxes are better served educating children that will grow up into productive adults--"alien" or not they are a hard working people group. We spend far too much on wars and such...spend money on investing in people and guess what I am also fine with the free lunch program. :-) My tax dollars, my vote, money where my heart is. It's fine your heart or passion lies where it does...that's what makes America so great and makes so many people want to come here. Guess what? Your relatives came here too so "alien" status is a little more close to home than you think perhaps.
tiny May 1, 2013 at 12:41 am
Ann D, Williams alien ship may be a u-boat with pariscope up.
lily May 6, 2013 at 06:51 pm
Vikki yes I agree, more bully breed owners should be out there advocating for the breed. ThereRead More are wonderful groups that do just that, but we need more.
PK May 6, 2013 at 05:22 pm
Bottom line is that any animal that is abused or trained to be aggressive by low life owners will beRead More a threat to people and other animals. You cannot blame the animal for how it is treated. It is the owners who brutalize breeds to become this way. I have known some pit bull's that have been treated well, with love and care, and they are the nicest most loyal animals out there. Owners and breeders are responsible.
Vikki Foley Boyd May 6, 2013 at 02:10 pm
Lilly, I think we are saying the same thing. You can't make broad statements about any group.Read More I would never use the word "all" but you can identify 'trends' and draw a correlation between criminals and their choices, i.e., 'generally', drug dealers will own guns. People are ignoramuses if they said to your face that you must be a drug dealer because of your breed. The rescue people think I'm a pretentious highbrow because I will only own a purebred AKC dog. I could care less. They are entitled to their opinion. It's my money and my training time that I put into my dog. Like I said , pitbull owners need to get out there in the dog sports world like Jen. Once the public see's more of these dogs doing amazing work with their responsible handlers, this will show the breed in a more positive light. Instead they sit on chat rooms and complain how they are discriminated against. AKC now allows mixed breed and non-AKC registered dogs to compete in obedience. This is not an expensive sport and can be very rewarding for both dog and handler.
Joanna Clark April 28, 2013 at 01:07 pm
Worth reading . . . http://www.commondreams.org/headline/2013/04/26-1 Published on Friday, AprilRead More 26, 2013 by Common Dreams San Onofre Whistleblower Cites "Potentially Catastrophic" Design Flaw Inside source tells local news channel that cracked generator pipes at nuclear power plant could cause a full or partial meltdown - Lauren McCauley, staff writer
San Juan April 11, 2013 at 03:20 pm
No, say it aint so, the NUKE causing damage to our enviornment, no, please say it aint so...IT'SRead More SO!!!!!!!!!! SHUT THAT MONSTER DOWN RIGHT NOW AND STOP ALL THE BALONEY. WAKE UP CITIZENS NOW'S THE TIME TO SPEAK UP, IF YOU THINK THE FISH POPULATION IS MESSED UP, JUST WAIT TIL A MAJOR INCIDENT HAPPENS, THEN YOU CAN KISS THIS AREA GOOD BYE, JUST LIKE THE LITTLE FISHIES.!