If you set a good example you need not worry about setting rules.
Business, after all, is nothing more than a bunch of human relationships.
The only mistake I ever made was not listening to my gut.
Here's what management is about: Pick good people and set the right priorities.
Start with good people, lay out the rules, communicate with your employees, motivate them and reward them. If you do all those things effectively, you can't miss.
My father always used to say that when you die, if you've got five real friends, then you've had a great life.