Lessons in Business

I was sitting in class (business managmenet) and at the end of the class during Q & A this girl asks, how should you deal in a situation where you're a manager and the employees are your friends or family, or should u not do it at all, and what came to mind was:

"Keep your family and business completely seperated
Money and blood don’t mix like two **** and no *****. Find yourself in serious shit"