How to separate business and friendships

A: Is it even possible to separate business and friendships when you own or operate a small business? After all, a majority of small business revenue is drummed up through referrals from friends or family members. Or perhaps some of your business is friends or family members. Sometimes clients turn into friends.
My philosophy is this:

1. It’s ok to work with family and/or friends.

2. It’s ok to become friends with clients.

3. It’s not ok to pretend like you’re friends with people to turn them into clients.

This philosophy is not without a few guidelines.

Regarding number 1, if you treat these people with the same respect you treat clients/customers you’ve not previously known, there will be no reason to worry about something going sour and causing a rift in your personal relationships. This is only true when reciprocated by the client/customer that starts out as a family member or friend. If you treat all clients and customers as if they were family or friends, your business will only become known as having excellent customer service and keep all clients coming back for more.

K: I think it is great to be upfront with friends/family on how you want your new business relationship handled. Let them know that you have many clients and will treat them with the same respect as you would the others. If a friend or family member thinks they deserve special attention, it is good to get it all out in the open in the beginning.

A: Regarding #2, (it’s ok to become friends with clients), just don’t expect to become friends with ALL of your clients. Sometimes spending long hours on tough projects or coming into contact with a customer for frequent orders provides an inevitable opening for conversations to eventually turn to something other than work. It is ok to do this (in my opinion) and can forge an even stronger bond and loyalty between the two parties. Perhaps you’ll find a new drinking buddy or golfing partner.

For both 1 and 2 the most important rule is to NEVER take people for granted. This means as friends and family OR as a client/customer. If you follow this rule, you should be able to mesh the two with harmony.

Ok, now for #3. Don’t run into someone you had one class with in college and pretend like you were best friends to try and make a sale. You will be more transparent than an albino tadpole. People do not like salespeople or business owners acting as a “friend” first and salesperson second. This approach always rings false and reduces your credibility to below used car salesman status. Just be honest with yourself and the potential client/customer. You don’t even need to mention the class you shared in college. If you approach with honesty and knowledge, it will be a better sales tool than dredging up desperate references to the past.

K: There is no worse feeling than talking to someone who is obviously being fake. This is not to say casual acquaintances shouldn't be acknowledged. Use your judgement wisely and approach with sincerity.