Set policy to deal with expectations of pro bono work

By Andrea Kay
Gannett News Service

Mike is a dentist with a heart of gold. He doesn't just offer teeth cleaning, checkups, fillings and other dental services at a cut rate to his relatives and their children. He doesn't charge them anything. If his two brothers, in-laws and dozens of cousins take him up on his generosity, that's a lot of gratis work.

Smart decision? From a business perspective, maybe not.

He still has to pay the people who help him do the work and schedule and confirm the appointments. It costs him wear and tear on his equipment, and he must buy the supplies he uses for these appointments. It also takes him away from working on paying customers. But it's a personal choice he's made as to how he runs his business.

With so many people going into their own businesses, this is an issue to think about. Whether you're a one-person consulting business or sell a product or service, what would you do if someone you're close to expected your service or product for free? Will you feel obligated to do things you don't want — and resentful about it?

In the dentist's case, he was swayed in part to give it away because it's what people expected. Relatives hinted or came right out and said special — free in this case — treatment was what relatives should do for each other. Rather than create hard feelings, he went along. It's interesting to note that several of them who had retail establishments did not give him whatever he liked in their stores.

Other business people have a different philosophy. Some have special discount rates for friends and family. Others simply won't do business with friends and relatives because of the potential headaches.

Whatever your business, you need a clear policy on how to deal with friends and relatives and to communicate that policy up front.

You may still alienate some people who have expectations different from the policy you establish. But it's your business and reasonable people should understand — but not always. You could end up being the hot gossip topic at the next family reunion.

Other potential problems that could develop include:

• A paying customer or client who becomes a friend.

If you've become chummy with someone who has been paying you, the new friend may now expect your service or products for free or at a discount. Addressing this by talking about your policy, will be touchy but necessary, and is a discussion to have before you present this person with a bill. You may even make a conscious choice to not get that close to customers.

• Working with a friend that puts a strain on your relationship. For example, if you are a consultant, your friend may not like your counsel. Or you may not like his attitude. He can be a nice friend but a difficult and demanding customer. If you don't want to lose the friendship, you need to address this and potentially end the business relationship.

It's presumptuous for people to expect you to give away your services or even discount what you do. But they will. So you need to set the terms early on or pay with a misunderstanding — and maybe more — later.