It's a bit counterintuitive, but that's why I actually do the opposite from most founders who are trying to hire: I tell potential hires everything that's horrible about our company--all the reasons why we suck, why we'll fail, etc.
It turns out that the candidate that's a good fit really values having that conversation and relishes the opportunity to think through what the problems are and how they can help. It's also extremely differentiating from how most companies hire. I say, if you suck, embrace it.