When to Say, "You're Hired!"

Business owners, human-resource specialists, and lawyers offer 12 guidelines on making your first hire

Teresa Ornelas' first hire wasn't that difficult. Barely six months into founding her business, Great Impact Inc., which sells promotional products emblazoned with corporate logos, Ornelas realized that she would need one more hand to help in sales and marketing. But instead of posting a classified ad, she relied on family and hired her sister, who lives in Tempe, Ariz., where Ornelas' startup is based.

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