1) Make clear job descriptions. Knowing exactly what you expect of your employee will enable you to pick a person that best fits the job. You can't hire the right person if you don't know what you plan to ask of them. Consider what level of education the position will require, and if you want someone who has prior experience. Clear job descriptions also protect you from violating discrimination laws, as you can refer to a job description to show why or why not someone was hired.
2) Do a background check. Sure it is a little extra work, but people aren't always what they seem. Make sure and let people you are interviewing know that getting the job is dependent on having a good background check. Employees must be U.S. citizens, resident aliens, or have the proper paperwork that enables them to receive wages. Make sure they can provide proof of citizenship or residency. A simple check is to Google the prospective hire's name; see what comes up. You might be surprised.
3) Know how to interview. You might want to get some coaching in how to interview employees, or have an HR firm do the interviewing for you. Some key points to successfully interview people are to talk less and listen more, and make sure and keep things formal. Light conversation is good to break the ice, but be careful with what you ask. A seemingly harmless question can land you in a heap of trouble.
4) Develop an employee handbook. While there is extra work involved in putting together such an item, an employee handbook puts into writing exactly what you expect. Policies and procedures are clearly spelled out for all to see and employees cannot refute what is written in the handbook. Handbooks also help you to remain consistent as a boss, a desirable quality for employers.
As your business grows you will need to hire on at least a few employees to keep things running smoothly. Having a standardized process for hiring employees keeps the process simple. If you have yet to hire on your first employee make sure a system is in place before you start and if you currently have employees but no system for hiring consider developing one to make the hiring process easier in the future.