Why Relying on Friends and Family Can Hurt Your Small Business

August 7, 2024

As a marketing strategist, one of the things I often hear from my clients is their frustration with friends and family not supporting their business the way they expected. Many entrepreneurs start with the belief that their closest connections will be their first customers—the ones who spread the word, make purchases, and help the business grow. But more often than not, I hear the opposite: "Why is it that strangers are more willing to trust me than the people who know me best?"

This is a common experience for small business owners. Friends and family sometimes view your business differently. Instead of focusing on the value of your product or service, they might zero in on what you’re earning from the sale. No matter how much effort you put in or how good the deal is, they tend to think, How much did they make off of me? It’s frustrating, but it’s a reality many entrepreneurs face. These personal connections can see you as someone they’ve always known, not as a business owner providing value. And that mentality can get in the way of genuine support.

One of the first things I tell my clients is that relying on friends and family as your primary customer base is not sustainable. They may buy once, or maybe even twice, but to grow a business, you need a wider audience. I encourage my clients to shift their focus toward building a community of customers who truly value what they offer. This often means leaning into marketing, networking, and crafting a brand that speaks to people beyond your immediate circle.

Another important point I make is that friends and family may not understand what it takes to run a business. They don’t see the behind-the-scenes effort—the time, the financial risks, the late nights. And because they know you personally, they may expect discounts or special treatment. I always remind my clients that their time, effort, and expertise have value. It’s critical to maintain the integrity of your pricing and not feel pressured to make concessions for those close to you.

Ultimately, I advise my clients to focus on building relationships with customers who appreciate their work and see its value. The truth is, success rarely comes from your immediate circle. It comes from cultivating a loyal audience that recognizes your business for what it is—a quality service or product worth investing in. That’s where real growth happens.