Hiring the best person for a job you have to fill is a process that begins with a precise definition of the job and the qualities of the person you want to fill it. The more detailed the description, the easier it will be to compare candidates. Your list of qualifications should include not only education, training, special skills and years of experience, but also intangibles such as ability to function as part of a team or the ability to work independently and without supervision.

The interview is at the heart of the hiring process. An atmosphere in which the candidate feels comfortable and important is most likely to elicit honest responses to your questions. Small gestures, such as not making the person wait, personally greeting the candidate in the reception area, eliminating interruptions during the interview (asking a secretary to hold all phone calls, for instance), and offering something to drink, make an applicant feel valued.

The questions you ask should not suggest the answer you want to hear but should give the applicant a chance to draw an accurate picture of his or her strengths and weaknesses.

Examples:

• What do you like best about your current job and what do you like least?
• Describe one or two recent achievements in your present job and one or two instances where things did not work out. (Do not use the word "failure.")
• What kind of supervisor do you work with best? What kind of person do you clash with?
• Under what circumstances do you perform best? High pressure and short deadlines? Crises? Measured, highly structured deadlines? With lots of supervision? With little supervision?
• Why do you want to work here? What does this company offer that your present employer does not?

There are some questions you cannot ask. It's illegal to ask an applicant's age, marital status, ethnic background, disabilities, sexual preference, religion and arrest record (you can ask if he or she has ever been convicted of a crime).

It's a good idea to interview serious applicants more than once, introducing them to various people in the company to get their opinions.

FOLLOWING UP THE INTERVIEW

Some people are expert interviewees, offering articulate descriptions of themselves and answers that seem to fit the employer perfectly. Protect yourself by following up on the most promising applicants, checking the accuracy of their resumes and talking to references. Some employers even administer aptitude and skills tests to ensure the person can do what a resume claims. Professional recruiters say that 15% of the resumes they check contain false information.

Remember when talking to references that they may be reluctant to volunteer negative information because they fear lawsuits. Listen not only to what references say, but also to what they do not say. For instance, someone who comments that an employee comes to work exactly at nine in the morning and leaves at five may be suggesting the applicant is a clock watcher and not willing to make extra effort when needed. Delicately probe for explanations and fuller descriptions. For instance, you might ask for an example of the applicant's level of commitment and enthusiasm for a particular task.

WHEN THE EMPLOYEE IS A FAMILY MEMBER

Families and small companies often seem to go hand in hand, and odds are good that the employees of your business include at least one relative. For many people, the chance to work with family members is one of the attractions of a small company. But managing a family member is not like managing just any other employee.

Non-family employees may feel that they are less likely to be promoted. This means the owner needs to watch out for power struggles between relatives and non-family employees and be sensitive to the feelings of non-family employees.

It's important not to let your knowledge of relatives' personal lives lead to special treatment for them. For instance, if you make allowances for a brother who misses an important deadline because you know he's having difficulty at home, you must be prepared to give non-family employees the same consideration.

Try to establish lines of authority so that family members do not have to supervise or report to each other, and keep your business relationship separate from your family relationships.

WHEN SMART ENTREPRENEURS MAKE DUMB MANAGERS

Small-business founders and chief executives are typically big picture, idea people who become captivated by a dream for a company and drive themselves to fulfill that dream. They tend to be quick decision-makers and may rely, often as not, on instinct and gut reaction. Their energy and commitment are contagious, making them inspiring leaders and motivators.

But successful entrepreneurs can be shortsighted about management as their company grows. It is important to recognize your own limitations and weaknesses and take steps to correct them. Founders of small companies often get into trouble in the following areas:

• They are reluctant to delegate or share authority and decision-making;
• They are inattentive to details and follow-through;
• They resist ideas that come from others;
• They get defensive in the face of criticism or suggestions for changes;
• They fail to provide employees with sufficient feedback, evaluation and incentives.

Should You Hire a Professional Manager?

The best entrepreneurs are often not the best managers because their skills lie more in launching and innovating than in organizing and sustaining. The solution may be to hire a professional manager. Before you do, you must be prepared and willing to relinquish some control over both daily discussions and long-term planning. With a professional manager, your company may become more formal and hierarchical. If you hire well, it will also become better organized and more efficient.

Good personal chemistry between you and the new manager is critical. You must be able to work well together, have the same vision for the company's future and agree on how to get there. Don't look for someone just like yourself who duplicates your strengths. You don't want a competitor, you want someone who complements you, someone who brings new knowledge, skills and experience to your company. Consider drawing up a written agreement that clearly explains titles, decision-making responsibility, pay, benefits and any stock sharing, plus grounds and arrangements for dissolving the relationship.

Finally, long-standing employees may resent your recruiting an outsider to help run the company. When introducing an outsider to your employees, explain the unique background and experiences he or she adds to the company.