As a business owner we have many decisions we need to make. The most important one is the people we chose to hire. While every decision is reversible, this one can do you the most good and to most harm.
There's volumes that can written about the how to think through the process, establishing job responsibilities, understanding how the team fits together, knowing what skills are needed on the tactical and strategic level, experience, exuberance, etc. To often I have seen people hired because the are nice or a friend, etc. You have to spend a lot of time understanding the teams needs and finding the right fit.
Without going into the 'hiring' manual (that will be written at some point, maybe on my soon to be small business help network) I do want to give the most important tip here.
Always, always, always get more than one input when hiring. Always, always, always have outside eyes helping you think through your needs, your teams needs, long term vs. short term.
I am lucky/grateful and blessed to have strong people willing to sit down and consul and coach me. Kirby and Jennifer are 2 such people. Their help yesterday was tremendous. I can't say enough about the 3 hours they spend with me and some potential employees. Celebrate the great people you surround yourself with. They should always be a wiser and more objective than you :)