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tranfree issue 33 - 12 June 2001
Doing Business with Friends and Family
by Alex Eames
I don't know if you have a personal policy for this situation or
if you've experienced it before. But it's a good idea to think
carefully about it.
In my experience, doing business with friends and family members
can have a few awkward disadvantages.
It's potentially awkward if something goes wrong because you have
more to lose than just your fee. You can spoil your relationship
with somebody close.
It's not just a straight 'client' - 'service-provider' business
relationship.
Lose an ordinary client and you lose income. But if something
goes wrong with your business dealings with a family member, it
touches your life much more, and can last a lot longer.
You may end up getting into an argument/dispute with someone you
thought you knew pretty well - and things can turn sour. You have
to weigh up the cost of all these things when deciding whether or
not to go for it.
Other things you need to consider are...
- Do you give them preferential prices?
- Do you push them hard if they're slow to pay?
- Do you treat them as normal clients or give them special treatment?
Have a look at these two situations which happened to me...
Situation #1
My first experience of doing business with members of my own
family was a long time ago when I was 14 or 15. It involved the
first business I started. I used to play lot of tennis and I
would get through a set of...
...racket strings every week. So I
invested in a racket-stringing machine and ended up building up
quite a nice little business for myself (at that age).
I was given a racket to string by an uncle of mine. According to
my policy I did it as well as I could, and gave more than was
expected. I always used to put 'trebling' on the strings
afterwards. (It's the thin red 'rough or smooth' thread at top
and bottom for when you spin the racket to decide who serves
first).
When it came to collecting the money, I ended up collecting a
pound less than I was expecting according to our agreed in
advance figure. This may have been a misunderstanding, but I felt
taken advantage of and I didn't feel in a position to argue. So I
let it go.
Trivial - a pound. Or is it?
The fact that I still remember it nearly 20 years later means
that for the price of one measly pound, that guy has lost the
possibility of doing business with me in the future. i.e. I no
longer trust him. Maybe I'm harsh, maybe not. But it has left a
nasty taste behind.
I don't bear him any ill-will at all. I just wouldn't do any
further business with him on any scale.
Situation #2
The second, more recent event relates more directly to
translation.
We handled two small translation jobs for a cousin of mine last
year. One in August and one in September 2000. They were
languages that we don't do in-house, so we sub-contracted them
out to freelancers. We paid both of these translators within a
week or two...
...and we have yet to collect our money on that job (Now June
2001) 
I'm in a bit of a dilemma about what to do. I don't want to sour
my relationship with that cousin. (It's not a child of the same
uncle - in case you're wondering - so it's not hereditary)
The outstanding amount is 100 pounds. We already paid the
translators months ago. So we're out of pocket. And we already
sent a reminder copy of the invoice a couple of weeks ago.
I would have no problem with the idea of chasing this guy, but
for the fact that his father has been good to us in the past.
At the same time, he's fairly new in business and I don't want to
encourage him into thinking that he can take advantage of people.
Might I be doing him more harm than good if I don't make him pay
up? One day he might try to shaft the wrong person and get
himself hurt.
See the problem? When you take on a job for a member of your
family or a friend, it's just more complicated. You can't just
treat them as an ordinary client - there's all this hidden
'baggage' just below the surface.
Where Does This Leave Us?
Situation #1 shows how the relationship can be spoiled or soured
by doing business with friends and family - and that it can have
a long-lasting effect on the way you see other people.
Situation #2 shows how your decisions can be affected by family
baggage. I may just let this matter drop because this guy's
father was good to us in the past. But - if I do that, I won't do
business with this guy again either. And since I already know
what that feels like, I'm reluctant to blacklist another member
of my family.
You Decide What's Best for You
In all honesty, I don't have a specific recommendation for you
about whether or not you should do business with friends and
family. I have to say that my experience hasn't been particularly
positive. But that doesn't mean it never is, does it?
You have to leave it to your own discretion and choose whether or
not you think this particular person in your family is going to
be a good bet. Life's a gamble and nothing is assured (on earth
at least).
Well, maybe you can help other people decide?
I couldn't yet find a conclusive solution inside my own head, so
I guess this is an ideal topic to get interactive. So what do you
think? What's your experience? Please come and vote at...
http://tranfree.com/family-survey.html
It's just a one-question poll. It takes about 5 seconds to
complete and you'll be able to see the results after you've
voted. You can even see the results if you don't want to vote...
http://tranfree.com/family-survey.html
Let's see what everyone else thinks.
Alex Eames is the founder of translatortips.com,
editor of tranfree and author of the eBook...
How to Earn $80,000+ Per Year as a Freelance Translator
http://www.translatortips.net/ht50.html
Click here to return to tranfree 33 main page
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