Advantages of hiring friends and relatives:
You already know many of the capabilities of your relatives and close friends. This will let you assign just the right tasks to each person, based on their individual strengths and weaknesses.
Friends and family may already be familiar with your company and how it works. You wouldn't need to spend as much time training new employees with the aims of your company.
Hiring your children can also bring special advantages. Your company will have another capable employee, while your family will be earning extra money. There may also be tax advantages to hiring your children.
Family members and close friends enter a business agreement with you already possessing a strong commitment to you as an individual, and, most likely, to your company. Because of this, they may be more willing to work longer hours (such as evenings or weekends) when necessary.