Its fine to do business with friends and family. Tell them up front I’m going to be harder to deal with because I know you and care about you. It is business, and I don’t like mixing business with personal. I will probably be harder with you than someone else because of this. You may not want to go this route.
Treat things logical in business; it is not personal; it is business. That may sound wrong, but if you start to do favors and that kind of stuff, you’re not treating people the same. Your business may suffer just because of a friendship that probably want last anyway. I recently had a situation like this happen. I told the person no, and they kept trying to manipulate me. They lost a lot of colleterial with me on that day.