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34 · HIRING / CASH FLOW
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Example situation: Hire Two Salespeople Now or Wait Six Months? A UK Small Business Example

Hire Two Salespeople Now or Wait Six Months? A UK Small Business Example

Question

“We are a UK business with 14 employees and annual revenue of about £1.8 million. Orders are growing and we are considering hiring two more salespeople now rather than in six months. Each would cost about £42,000 a year in salary, plus roughly 25% in employer costs. We hold about £220,000 in cash and do not want it to fall below £100,000. Should we hire both now, hire one, or wait?”

What to question

How many months of full cost can we carry before a new salesperson pays for themselves? What clear trigger would justify the second hire? Is the growth in orders caused by sales effort, or would it continue anyway?

How the depth changes

Focused → broader → deepest

Essential · 4 perspectives

Four perspectives quickly separate the cost from the benefit: what two salespeople really cost per month once employer costs are included, how long a…

Consilium · 8 perspectives

Four additional perspectives question the assumption that the order book will keep growing, model a downside in which the hires become productive…

Grand Consilium · 12 perspectives

Four additional perspectives test the cash path month by month against the £100,000 floor, compare hiring with agencies or commission-only…

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