I ran across a great list of five "to dos" (or maybe "not to dos") when it comes to hiring employees for your business...especially when those employees happen to be friends or family.
See if you agree with these five tips, and perhaps they can help you make more successful hires for your new business:
Rule #1. Never, ever hire a friend or relative to work directly for you. You don't have the judgment to evaluate them objectively - and if things go bad, you can ruin the primary relationship.
Rule #2. If you want to give a friend or relative an opportunity to work in your 
business, tell them about the job and recommend that they apply for it. You can also tell their future boss that you have suggested the connection. But be very clear that you will not interfere at all with the relationship. The hiring, firing, compensation, and other aspects of the job are entirely the supervisor's decisions.
Rule #3. If that person is hired, refuse to get involved. Don't even talk to them about work. Tell them ahead of time that you want to keep your relationship personal and hold them to it.
Rule #4. If you want your child to work for your business, start them at the bottom and let them work their way up the ladder on their own. Banish any expectations of their taking over the business. What's best for them is to end up in the job that best suits them. Let the natural forces of your business decide that.
Rule #5. When relatives and friends are being interviewed by their potential boss, they must be scrutinized and assessed with rigor. The person doing the interviewing should:
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