Guide
Can you afford to hire your next employee?
Hiring is one of the biggest decisions a small business makes, and the role keeps being postponed because the numbers feel too tight. Three checks turn that feeling into an answer.
1. The full monthly cost
Add the salary to everything that comes with it: employer taxes and contributions, benefits, equipment, software and training. The full cost is usually noticeably more than the salary alone.
2. The sales needed to cover it
Divide the full monthly cost by your gross margin. Example: a full cost of 4,000 a month and a 40% gross margin means the business needs 10,000 more in monthly sales to carry the role, unless the hire saves costs or frees you to win work.
3. The cash test
A new person is paid from day one, while the revenue they help win comes later. Check that your cash forecast stays comfortably positive for at least three months with the new cost added from the start date.
Make the decision on real numbers
Big4CFO shows your gross margin, break-even sales, cash cover and a 13-week forecast every month, and the Excel workbook lets you add the new cost and see what changes.
Have it worked out on your own figures
Big4CFO checks your books to the cent and produces this every month, from your own records. One-time reports cost $49 (one month), $99 (three months) or $199 (twelve months). Monthly plans start at $349 a month (Foundational), with Growth at $599, Leverage at $899 and Capital Stack at $1,999.
Questions
- What if the hire would free me to sell more?
- Then count your own time: if the hire takes work off you, estimate the extra sales you could win and test whether they cover the cost within a few months.
See it on your own figures
One-time reports from $49, delivered within minutes. Monthly plans from $349. Every payment carries a 14-day money-back guarantee.