Friends Don’t Let Friends Work for Free

by | Nov 14, 2018

Trust and Commitment in a Remote Team 

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Small business professionals provide valuable products and services that other people need. If they didn’t, they couldn’t stay open very long, obviously. And, these professionals have friends. Often, these friends make up much of the business’s early customer base.

Trouble occurs, sadly, when these friends start wanting free work from your small business. It’s hard to say no. You want your friends to like you. They’ve supported you through thick and thin, and they’re just asking for a favor. That’s not such a big deal, right?

Wrong! You can’t afford to throw around free work. If every friend you had in your life (from close pals to business buddies) put their hand out and got a no-cost service from your business, you’d be broke fast. You need to learn to say “no” when friends and family come calling for free stuff, or you’ll hurt your business. Here are a few things to mull over.

It’s a slippery slope. Offering a free deal to a friend—just one friend—might not seem so significant. Well, maybe it’s not…but what happens next could be. You waive your invoice for one pal, and then another asks. You said ‘yes’ to the first, so you have to say ‘yes’ to the next. And the next. And the next. Suddenly, that one-time deal turns into hundreds, maybe even thousands, of dollars worth of work that you aren’t billing or getting paid for.

You’re worth it. If that freebie-seeker really is your friend, they should recognize that you’re making a living, and that your time and talent are worth paying for. If they insist on getting the fruits of your labor for free, then they’re really not your friend, are they?

Consider a discount. Depending on what services and products you offer, and what your philosophy is, you might instead offer a free-stuff hunter a deal. Make it clear that you’re not a bargain-basement operation, and that you don’t slash your rates for just anyone. Chances are they’ll appreciate the friends-and-family deal you’re offering, and it’ll help them see the worth in both your company and the relationship you have with this person.

How about a trade? You likely don’t want to work for free, but if your friend is a fellow small business pro, they might have a service that you could use. The barter system just might be the thing—for example, you offer to take photos for their adorable baby’s first birthday, and the tradeoff is they, say, fix your pesky plumbing problem. It’s a good idea to issue an invoice showing the value of the work each party is offering, so everyone knows the value of what they’re getting. It’s wise to make sure your mutual favors are roughly equivalent, dollar-wise, so neither of you feels ripped off.

Now, are there exceptions to the no-freebie rule? Of course. I’ve offered my services up for no cost when the recipient is a charity, or when the person asking reps an organization that can offer benefits like exposure, or solid referrals. It’s important, though, not to make working for free a habit. If you need advice on how to let folks down gently, or you’d like a financial consultant to show you how too much free work can negatively impact your business, contact Daliah at Info@MySmallBusinessPro.com. She’s always available to offer expert, friendly advice.

Trust and Commitment in a Remote Team 

A couple of months ago, I made my first overseas trek since 2017 – not for vacation – but to meet with the rest of the Fritz Financial Solutions team of accountants in the Philippines. It was important to me to show these women the time and attention needed to...

Client Spotlight: Andrea Freidman 

As a business owner, one of the most significant challenges to overcome is work-life balance. This dilemma has only been exacerbated over the last several years and forced many "traditional" industries, such as the legal profession, to change their ways. Long before...

MEET THE TEAM: Joy mercado, Staff Accountant 

Joy Mercado joined Fritz Financial Solutions just over six months ago after completing an accelerator program with TOA Global, our offshore recruiting partner specializing in the accounting industry. Joy has quickly become an invaluable team member doing highly...

Client Spotlight: Isaac Crawford  

Isaac Crawford is a ray of sunshine who went after his dreams and came out on top when he started his own hair salon. He has been in the hair industry for almost 15 years and has serviced hundreds of clients in Chicago. An inspiration to entrepreneurs, we are excited...

MEET THE TEAM: Milen Gomez, Staff ACCOUNTANT

6 months ago, we added a new staff accountant to our team: Milen Gomez. Our newest staff accountant is the best we could ask for with her incredible attention to detail and efficient mindset. She has been an essential part of our continued growth by always putting her...

Client Spotlight: Danielle Suchala Klausing

It’s always an exciting time when you’re ready to take the next step in life and buy a home. But finding that perfect home can be a challenge, especially if you’re not familiar with the real estate industry. That’s where Danielle comes in. With over 7 years of...

Who is responsible for payroll?

One of the most expensive resources for any business is payroll. It’s also one of the most important. We are firm believers that people are your most valuable asset, so it’s no wonder that payroll gets costly. Especially if you are a professional services company, and...

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