Is it a good idea to hire friends/family?

Imagine the worst case scenario and triple that trouble.

You are taking away their freedom to talk behind their boss' back.

Worst idea ever.

If you need help, ask your friend for a favour. If it's a short-term help, your friend may help you. If you need long-term support, hire anybody except your family and friends.

If you pay your friend and your friend doesn't do well their job, you can not argue with your friend. If you argue with your friends about your job, your relationship might be broken.

So, I will never suggest you do business with your friends or family. It always ends up bad.

I think it depends on the people involved. If you and the friends and family you hire all have good communication skills, empathy, and are able and willing to talk through difficult things, then I think it is mostly upside.

If both sides aren't prepared or don't have all the needed tools, then problems can be greatly magnified when there are deep personal attachments as well.

I think it makes a lot of sense to approach cautiously and thoughtfully, but if you feel confident it would work well after that, then I think it can be really positive.

Risky.

Could be the best thing ever. Or could go horribly wrong. Heard about both scenarios.

I'm working with my wife, 10y and it's going great. My parents had a business together and it ended up putting a strain on their personal relationship.

It's on a case-by-case basis. And the thing is, no matter how many precautions you take, you can still get screwed. My take on this is to listen to your gut. If you have the slightest feeling something might go wrong, it will go wrong.

I personally love working with my younger brother. It feels really good to be contributing financially to the wellbeing of a family member and since we spend so much time with the people we work with, it also makes my work feel even more, like you said, meaningful. It seems like like where things get risky is if your family member doesnt perform as well as you hoped...maybe to avoid that you could do like a one-month project together, and then if that goes well you could actually hire them?

Great question. I partnered with my dad and brother for 6 years on a mobile app company tapity and hired several of my best friends along the way so I have a few thoughts.

1. Despite some tremendous ups and downs, I made it through with stronger relationships with everyone, but at the same time there are several points where things could have gone horribly wrong. So know that it can be rewarding, but also incredibly risky. So basically, know that going down this road will almost certainly lead you into situations where you need to either compromise your relationship or your ability to make completely objective decisions (i.e. they aren't performing; how much benefit of the doubt do you give them before letting them go?)
2. Avoid the trap of informality. It can be really weird to hand your friend or family member a contract or working agreement - why so formal? We trust each other right? I'd say with friends and family it's even more important to put things in writing so everyone goes in with the same, very clear expectations. It is very easy to be loosey goosey and then end up realizing y'all are really not on the same page, which can put your relationship at huge risk.
3. To @jkchu's point, examine your relationship. Do you think you could give candid feedback to them (and vice versa) without it becoming dramatic? Do they actually have what it takes to add real value to the business? Will they take it seriously or could your friendship make things feel too informal and loose?
4. If things go south, both sides need to be prepared to "forgive and forget" as @fromtheexchange mentioned if the relationship is important to you. Business and money can bring out the worst in people (including yourself) so go in eyes wide open.
5. Imagine the worst case scenario (i.e. this person ends up making a $100k mistake that puts you personally in a lot of debt and destroys your business). If you don't think you can forgive such a thing, but you still value your relationship, probably better not to get into it in the first place.
6. On the other hand, there are lots of examples where things do work out. You have instant trust, which takes time to build with strangers. You get to spend a bunch of time with people you love and your relationship, if it survives, can go much deeper. It can be a good way to start something that folks aren't sure will work out since folks may be able to put more skin in the game for friends and family. etc

Usually, it’s a great thing. Best to start with small, manageable tasks and see how it goes. Though, it can be risky—so if it doesn’t work out, just be prepared to forgive and forget to keep your relationship. Regardless, it’s a learning and growing experience for both sides.

For me, the best tip:
"If you and the friend or family member has ever had a serious conflict as adults, how was it handled?"

Just doesn't seem like there's an advantage to it, yet the downside is massive.

It all starts to fall apart when the trust has to come in. Not being communicative will change the course of your project. Plus, hiring friends or family will change your relationship with them possibly forever.