You probably talked with your friends first when you had early thoughts of starting your own business. In fact, you may have considered hiring friends to help you launch your startup.
Then again, perhaps you are wary of mixing business with friendship. That is valid as many business ventures have ruined friendships. If you would rather not risk that, it’s fine to have a “no hiring friends” policy from the outset. But most people are in a hard spot when they start their business. They need cheap or inexpensive labor, especially in the beginning, and your friends and family are usually the only people around willing to invest in your business with sweat equity. So what is a cash strapped start-up business owner to do? How do you hire a friend so that both the business and the friendship thrive? Here are few things to consider.
Is It Smart Business to Hire Friends?
Once you have decided you’re going to start your own business. Wouldn’t the people who know you best be ideal to help you create the company you want? What’s more, close friends are more likely to be willing to work long hours with little short-term gain in hopes of benefiting long-term. This can be invaluable when you’re trying to preserve capital. Sometimes friends can add value to the business relationship. They know you and you know them – strengths, weaknesses, and all. And, if friends bring out the best in each other, it makes sense that it’s good for business. But if you tend to be competitive with your friends, you have to consider how to manage friendship in the context of business.
Managing Friends in the Workplace
Since you’re the business owner, it’s up to you to be a leader in your business. You also have to prepare for your friendship to change in some ways, which implies risk. Mixing business with friendship can harm friendships, but it also can turn them into the strongest relationships in your life. You should also sit-down with them and talk openly how you will need to deal with each other in the workplace.
However casual and informal you expect your business environment to be, you must treat everyone the same. And, if you’re prepared to hire a friend, you should be prepared to fire them too, should the business relationship not work out. The good news is, if you have to fire a friend, you can do so in a way that preserves the friendship as long as you’re honest and open throughout the business relationship. If you follow a specific process as to why you’re letting them go, it should not be a surprise and in time you can rebuild the friendship.
Before hiring anyone or a friend, you create a set hiring process, with a job description, interview questions and an on-boarding document so that you clearly communicate your expectations. And, you should consistently demonstrate that your business is a meritocracy. In other words, someone doesn’t get the title of “Vice President” without being qualified to fulfill that job’s demands.
Should I Hire Someone Who’s in a Bad Situation?
We all have friends who somehow always have a seat on the struggle bus. There’s nothing wrong with hiring a friend who has found themselves in a difficult situation, as long as there is a legitimate role they can fulfill in your business. Look for low risk positions, whether that’s custodial services, logo design, or bookkeeping to give them a try. However, if someone in your life is repeatedly in bad situations because of poor life choices, just give them some money that you can afford not to get back. You should feel no obligation to hire them, because their issues will affect your company. If you bring in a troubled friend who’s in a tight spot, if she ends up excelling, you can and should promote her.
Should I Avoid Hiring Friends?
Some people are of the opinion that hiring friends is not worth the trouble or drama. They want to keep business and friendship separate. When an equality-based relationship incorporates power, and that can be difficult for both parties. When you hire a friend they may assume (rightly or wrongly) there’s an alliance between you and they will enjoy special treatment and when that doesn’t happen, and they can become resentful. Therefore, you have to choose your battles carefully. There’s nothing wrong with starting your business and having “no hiring friends” policy right from the start.
If you have a strong hiring policy and run your business as a true meritocracy, you can blend business and friendship. If you don’t want a potential headache you can just decide not to do it, and no one would blame you. If you’re interested in more small business ideas, I encourage you to get the Become Your Own Boss Workbook, for a systematic guide for translating your small business dream into reality.
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