I tried hiring family and friends into my businesses... mixed results ensued.
My worst was tryhing to hire family, I would definately opt against sharing your business with any family other than you spouse and/or children. I`ve found that others will try to wrnech your business away from you based on their "life experience" or trying to "save you from a terrible mistake". Just my experiences, but, I`ve also had friends with similiar ones.
As far as friends, the biggest peoblem to overcome is, can they create a line and keep it wherein they say "Point A, I am your friend, Point B, I am your colleague", and not get those two points confused? I`ve lost a few friends due to their inability to keep these two points straight. I`ve also gained some, due to their ability to seperate those points, and help nourish a friendship from a business meeting.
I think the most direct advice I can give is:
1.) Don`t show preference, or give them a "special" chance/ leg up because they know you.
2.) Don`t treat them any different than you would anyone else you went into business with, and let them know you expect the same. (This includes titles and/or taking orders no matter if they are "above" you or not elsewhere.)
3.) Have a clearly defined job role, and stick to it. Don`t suprise them with suddent expectations, and don`t allow them to change their job role "because you love them" or are "buds".
Hope that helps -- it`s all I can think of right now.
"Creating tomorrow today!: It`s not as easy as it sounded!!!"
The sword`s real, I use it to cut through the lies I find in business and making money!