Should You Hire Friends and Family for Your Business?

When you own a small business, you need to wear many hats to run and grow your enterprise. However, there will come a time when you can’t do it all alone and need to hire employees.

When you reach that point, it may be tempting to enlist the help of family and friends. After all, they’re a known entity, they’re accessible, and they’re already rooting for you. But even though it sounds like a great idea, there are potential pitfalls to consider.

Let’s look at the full picture so you can make an informed decision for your business.

Pros of Hiring Family and Friends

Aside from having previous knowledge about their character and background, hiring those you’re close to could offer the following benefits:

• Shorter hiring process. Since you know them so well, assessing their capabilities, attitudes, and personality traits can be much easier and faster as compared to external hires.
• More flexible and trustworthy workforce. Your loved ones may be willing to accept lower pay or an odd schedule to help you be successful. They’re also less likely to steal from you or engage in other behaviors that put your business at risk.
• Potential tax breaks. Depending on which family member you employ…