Before bringing a family or friend on board, you need to first ask yourself, "If your friend/family wasn't your friend/family, would you think he/she was the best candidate for the job?". If you must bring your friend or family aboard your business, you need to be totally sure it is worth it because it's not going to be easy, so it has to at least be worth it.

Be distinctive about work and family, keep business discussions out of family and personal gatherings. If you must talk about work, let it be to just joke around and share funny work stories, it shouldn't be anything too sensitive or critical.

Contracts are particularly crucial when working with family and friends, because where sentiments might weaken your stand, a contract will help to give strength to it. If there is a 'push-back' while working with family or friends, a legally binding contract can easily help to bring everyone back on the same page. It's best to have a contract to guide all critical and sensitive parts of the business (like the salary aspect etc.), so everything is well spelt out for everyone to understand without misinterpretation or being sentimental about it. 

This is very important when working with family and friends. It is important that everyone knows their place in the business. Too often, people jump into a business without clearly defining the roles and extent of authority of each employee, especially with family businesses. Clearly and properly defining everyone's roles in the business helps to keep employees from stepping on each other's toes, prevents avoidable problems and keeps everyone focused on what they need to do.

This can be especially helpful if you're working with a spouse. Try to mix things up within the workplace and find ways to work remotely, so you're not all in each other's faces all the time. This can help to reduce some of the friction that might occasionally arise from working with family and friends.