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Top 7 Hiring Mistakes for Start-ups

07/07/08 - 07:48 PM EDT

Entrepreneur.com

Written by Brad Sugars

Building great teams is never easy.

A quick look at the sports world confirms this. Coaches come and go, players are free to seek new teams and owners are free to sign players who fit certain roles within the limits of payroll.

In business, it's equally difficult. Even established businesses suffer from hiring and team-building mistakes. Unlike a start-up, however, those companies can afford to make a hiring mistake without significantly impacting their overall operations.

Unfortunately, start-ups don't have that cushion of profit to cover up a hiring mistake. That's especially true in a small company, where one person who is not the right fit could mean that 25% or up to 50% of your work force is now a big problem.

The good thing is there are some hard and fast hiring rules start-ups should follow. Most hiring issues occur as a result of looking to keep costs down or not having a clear vision about what the business is and where it's going.

However, my experience has shown me that cutting corners in the hiring process now can mean trouble for the business later. To avoid trouble, here are the top seven hiring mistakes many start-ups make:

1. Hiring someone just because you know them. This means friends, former co-workers, family members or your own children. For a husband, this means hiring your wife. For a wife, this means hiring your husband. Even part-time. There needs to be a certain sense of objectivity and accountability in the workplace. Friends and family expect to be treated with a different standard -- and they should. Away from your business, but never in it.

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