The Hidden Risks of Treating Friends and Family in Your Business

When you’re running your own business – especially in health and wellness – it’s natural to want to help the people you care about. You’re passionate about your work, and it feels good to offer your services to friends and family, often at a discount or even for free.

But here’s what’s rarely discussed: treating friends and family like regular clients – without the systems and boundaries you’ve set for paying clients – can come with serious risks. These risks aren’t just financial; they can impact your reputation, your relationships, and your legal protection.

Whether you’re a naturopath, massage therapist, nutritionist, coach or consultant, setting clear boundaries with loved ones isn’t harsh. It’s a necessary part of protecting the business you’re building.

Let’s unpack the risks and how you can navigate them professionally.

Blurred Boundaries Create Real Vulnerability

When your client is your cousin or best friend, the usual onboarding process often gets skipped. No intake forms. No contract. No informed consent. No clear understanding of scope, fees, or cancellations.

The problem? If there’s no documentation in place, you have very little to rely on when something goes wrong.

Verbal conversations or texts won’t hold up if there’s a complaint. If a family member misunderstands your recommendations or is unhappy with the outcome, you could find yourself in a difficult position- without the legal protection you’d have with a standard client.

This is exactly why having an Informed Consent & Client Agreement Template in place is so important. It clearly outlines the type of treatment you provide, potential risks, and client responsibilities- no matter who the client is.

Shop the Informed Consent & Client Agreement here. 

 

Discounts Can Erode the Value of Your Work

Offering a “friends and family rate” or doing free sessions can feel generous- but if you do it too often, for too many people, it can quietly devalue your services.

Over time, it may:

  • Undermine your confidence in charging full price
  • Encourage others to expect the same discount
  • Create resentment when your time and energy aren’t reciprocated

Your pricing reflects your training, experience, and the effort you put into every session. Giving away your services too freely not only chips away at your business sustainability-it also shifts how others perceive your professionalism.

Want to show appreciation? Offer a one-time gift session, or provide a set discount with clear boundaries.

 

Emotions + Business Don’t Always Mix

When you blur the line between personal and professional, it becomes difficult to maintain objectivity. You might hesitate to give honest feedback to a friend who’s not sticking to a plan. Or feel taken advantage of if they cancel last-minute without acknowledging the cost to your schedule.

The emotional fallout can be significant. And if your loved one doesn’t get the results they hoped for, it can cause strain on both your relationship and your reputation.

 

Your Reputation Could Take a Hit

Here’s the thing: friends and family talk. And if your cousin is telling everyone she gets sessions for free, you risk unintentionally branding yourself as a hobbyist, not a professional.

It might sound minor, but word-of-mouth matters. If others assume your pricing is flexible or that your policies don’t apply to everyone, you may find yourself in uncomfortable conversations with paying clients-or people asking for exceptions.

This is where a clearly outlined Privacy Policy, Website Terms of Use, and a strong onboarding process can help you set the tone.

The Website Bundle is perfect if you run your business online. Get your Website Bundle here.

“But It Was Free” Doesn’t Protect You

There’s a dangerous myth that offering your service for free means you’re not legally responsible if something goes wrong. Not true.

Whether the session is paid or unpaid, you still owe a duty of care to your client. If you’re providing treatment or advice, you are still responsible for:

  • Explaining the risks and limitations of your work
  • Documenting the client’s consent
  • Following appropriate procedures under the Privacy Act, especially if you collect sensitive health data

That’s why even pro bono work should still come with a clear agreement and client documentation.

If you’re not already using formal processes, the Get Started Template Bundle is a great place to begin. It includes all the essentials-Informed Consent, Terms of Sale, Privacy Policy, Email and Blog Disclaimers, and more.

View the Get Started Bundle here.

So What Should You Do?

You don’t have to stop helping friends or family-but you do need to protect yourself.

Here’s what we recommend:

  • Use proper documentation, even for discounted or free services
  • Communicate boundaries clearly and in writing
  • Limit how many free or discounted sessions you offer per quarter
  • Direct loved ones to your website or booking system so they go through the same process as others
  • Remember that your time and energy are valuable-and worthy of respect

 

Final Thoughts

Supporting friends and family is generous-but it’s not worth compromising your professional boundaries, legal protection, or emotional wellbeing.

Being clear, consistent, and professional from the outset protects your business-and your relationships. Because saying “no” to free sessions (or setting firm boundaries) doesn’t make you selfish. It makes you a smart, sustainable business owner.

If you’re not sure where to start, take a look at Legally Healthy’s range of lawyer-drafted, easy-to-use templates designed specifically for Australian health and wellness businesses.

Your business deserves to be protected-and so do you.

Shop Legally Health Templates here.

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