This is really valuable, thanks for taking the time to write it. As the sort of person who has a tendency to get caught up in small, nascent businesses (startups, I suppose ;) I've recently spent a lot of time either working for my friends or having my friends work for me. Knowing the difference is more important than I used to realise (especially as small, nascent "projects" become actual businesses) and managing the relationship (either as boss or underling, yet friend in each case) has its own learning curve.