When you’re in the scrappy, messy, thrilling early stages of building your business, hiring family and friends can feel like a no-brainer. They’re the ones who believe in you, they understand your vision (or at least tolerate your constant rambling about it), and they’re often the most accessible option. But let’s be real—what seems like a safe and logical choice can quickly unravel into something far more complicated.
Here’s the good, the bad, and the downright ugly of hiring those closest to you, and why getting your first 20 hires right can set the trajectory for your business—either toward success or a slow-motion implosion.
The Good
1. Trust and Loyalty: In the early days, trust is everything. You don’t have time for endless vetting, and family or friends bring a built-in layer of loyalty that can make all the difference when you’re putting out fires.
2. Flexibility and Buy-In: They’re often willing to roll with the punches—wearing multiple hats, working long hours, and sacrificing personal time because they’re just as emotionally invested as you are.
3. Cost-Effective: Let’s face it—many family and friends might be willing to work for a lower salary (or equity) in the beginning, giving you the breathing room to allocate resources elsewhere.
The Bad
1. Blurred Boundaries: The line between personal and professional can become murky fast. It’s hard to give constructive feedback—or fire someone—when you’re sharing Thanksgiving dinner a month later.
2. Skill Gaps: Just because they love you doesn’t mean they’re the best fit for the role. Hiring out of convenience rather than competence can bottleneck your growth.
3. Resentment Risks: If roles, responsibilities, or rewards aren’t clearly defined, it can breed resentment—both in the workplace and at home.
The Ugly
1. Tough Decisions Become Personal: Firing a friend or family member isn’t just a tough business decision—it’s potentially a life-altering moment for your relationship.
2. Culture Clashes: Early-stage businesses need a culture that’s adaptable, innovative, and high-performing. Friends or family who aren’t aligned with that culture—or worse, disrupt it—can derail the team.
3. Limited Perspective: Surrounding yourself with people who are too familiar with you can create an echo chamber. Diverse perspectives are essential, especially in those critical formative years.
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Why Your First 20 Hires Are Critical
Here’s the harsh truth: your first 20 hires will make or break your business. This initial team defines your company culture, sets the standard for performance, and builds the foundation for how you scale. If you fill those seats with the wrong people—whether it’s unqualified friends, overly loyal family members, or even just hires that don’t challenge you—you’re not setting your company up for success.
Your early-stage team needs to be:
Mission-Driven: They have to believe in your vision with every fiber of their being.
Multifaceted: Startups don’t have the luxury of hyper-specialization. Your team needs to wear multiple hats and adapt on the fly.
Scalable: Hire people who will grow with the business, not just fill a gap for the next six months.
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Hiring family and friends isn’t inherently bad—but it’s a high-risk move that requires clarity, transparency, and brutal honesty. Ask yourself: “If we didn’t know each other, would I still hire them for this role?” If the answer isn’t a resounding yes, think twice.
Remember, your first 20 hires aren’t just employees—they’re the architects of your vision. Hire intentionally, even if it means having hard conversations or waiting a little longer to find the right person. Because when you build with the right people, the foundation of your business becomes unshakable.