In the modern business world, success isn’t always just about talent, innovation, or hard work. Sometimes, it seems to hinge on something less formal—favors. Who owes who. Who scratched whose back. And who’s playing the long game. But is building a “business of favors” a legitimate strategy—or is it all just bull?
In this article, we’ll explore what a business built on favors really looks like, why it works (or doesn’t), and how to navigate it without losing your integrity—or your mind.
What Is a Business of Favors?
A “business of favors” refers to a work culture or strategy where success is driven by personal exchanges, informal deals, and mutual back-scratching rather than merit or transparent processes.
Examples of Favors in Business
- Making introductions in exchange for a return favor
- Hiring someone’s relative with the expectation of future perks
- Prioritizing partnerships based on personal relationships, not business value
- Favoritism in promotions or project assignments
While some of these may seem harmless or even smart networking, over-reliance on them can create serious ethical gray areas.
The Appeal: Why Favors Work (Temporarily)
Let’s be real—favors grease the wheels. In a fast-paced business environment, getting things done often comes down to relationships.
Why People Use Favors
- Speed: It bypasses red tape and speeds up decisions.
- Loyalty: Favor exchanges can build a sense of trust and long-term cooperation.
- Influence: Doing favors for people can increase your influence within a network or organization.
Favors, when done with transparency and fairness, can be a powerful part of relationship-building. But problems start when they become the foundation of how business is done.
The Problem: When Favors Turn Into Bull
The darker side of the favors-based business world reveals itself when merit takes a backseat to manipulation.
Risks of Favor-Based Business
- Nepotism & bias: It undermines fairness and leaves qualified people out.
- Toxic culture: People feel pressured to “owe” others just to keep up.
- Lack of accountability: Decisions are made based on who knows who—not what’s best.
- Burnout & resentment: Team members may feel undervalued or exploited.
Favor systems can spiral into what feels like political theater, where appearances matter more than performance.
How to Navigate a Favor-Driven Environment
If you find yourself in a workplace or industry where favors run the show, don’t panic—there’s a way to survive and thrive without selling your soul.
1. Build Relationships, Not Debts
Focus on creating genuine connections rather than transactional ones. Ask yourself: Would I do this for them if there were no strings attached?
2. Keep Records and Be Transparent
When you’re helping someone or receiving help, document agreements and timelines. That way, if expectations shift, you’ve got clarity.
3. Set Boundaries
You are not obligated to say yes to everything. Protect your time and reputation by being selective and strategic.
4. Speak Up for Merit
When you see unfairness or bias, don’t be afraid to advocate for process-based decisions. Merit and transparency benefit everyone in the long run.
Can You Turn Favors Into a Legit Business Strategy?
Yes—and no.
When It Works
- In relationship-driven industries like entertainment, PR, or politics
- When favors are built on value exchange, not manipulation
- With clear ethical lines and reciprocity
When It Backfires
- When favors outweigh qualifications or logic
- When people feel manipulated or excluded
- When the system becomes corrupt or toxic
Bottom line: a little favor here and there is smart business. But building your whole empire on IOUs? That’s shaky ground.
Final Thoughts: Don’t Buy the Bull—Build Better Business
A business of favors might look like the fast track to success, but in the long run, credibility, competence, and authenticity will take you further.
If you’re navigating a world where favors are currency, ask yourself:
Are you building a brand—or just building debts?
Stay true to your values, play smart, and don’t fall for the bull.
Josiah Sparks is a business writer and strategist, providing expert insights on management, leadership, and innovation at management-opleiding.org to help professionals thrive. His mission is to empower professionals with practical knowledge to excel in the ever-evolving business landscape.
