Of course it will. But that’s not in and of itself a problem.1 You know this person well enough to consider him a friend so it would be very strange not to give him a heads-up, especially because he’s actually the owner and it’s a small business. Just tell him that you saw the ad and think that you could potentially be a good candidate, even if you aren’t a perfect match experience-wise. Just be direct, honest and make it easy for him to say no. There are legitimate reasons not to hire friends, even if there are a few levels between you, your friend might simply prefer not to mix business with personal relationships, or they may as you suspect prefer a more experienced profile.