Scenario: You Want to Hire — What the CFO Data Tells You
A step-by-step process using AskBiz to check runway, model a new salary in fixed costs, and confirm whether hiring now is financially viable.
Key Takeaways
- Before committing to a hire, model the full loaded cost in Cost Configuration and check the impact on runway — the numbers should inform the decision, not make it alone.
- A safe hiring window requires runway to remain above nine months after adding the hire, with a realistic path to the hire paying for itself within six months.
- The Ask AI button on the runway card provides a personalised hire/wait recommendation based on your specific financial trajectory.
The Situation
Your business is growing and you need help — a customer service person, a warehouse operator, or a sales associate. You want to hire in the next four to six weeks, but you are not sure whether the finances support it. This is exactly the kind of decision AskBiz CFO is built to inform. Here is the step-by-step process.
Step 1 — Check Current Runway
Start with the Cash Runway card. What is the current figure in months? As a baseline rule of thumb, hiring is generally prudent when runway is above 12 months, viable with caution when runway is 9 to 12 months, and risky when runway is below 9 months. If current runway is below 9 months, the default answer is to wait — not because hiring is impossible, but because the financial buffer to absorb a hiring mistake (a bad fit, a slower-than-expected revenue return) is not adequate. If runway is above 9 months, proceed to Step 2.
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See this in action for your business
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Start for free →Step 2 — Calculate the Full Loaded Cost
Resist the temptation to model only the salary. Calculate the true monthly cost of the hire: gross salary plus employer taxes and national insurance (typically 10 to 15 percent of salary), plus any benefits (pension contribution, health cover), plus equipment and onboarding costs amortised over 12 months. For a hire with a $3,200 monthly gross salary, the true loaded cost is typically $3,800 to $4,200 per month. Use this fully loaded figure in your modelling — not the headline salary.
Step 3 — Add to Cost Configuration and Re-Check Runway
Open Cost Configuration and add a new Fixed Cost line: New Hire — [Role Name]. Enter the fully loaded monthly cost. Set the start date to your planned hire date. Save and return to the Cash Runway card. How many months has runway dropped? The impact on runway is your clearest signal. If runway was 14 months and the hire reduces it to 10 months, that is a meaningful but manageable reduction. If runway drops from 10 months to 6 months, the hire is significantly stretching the business financially and warrants careful assessment of the revenue return the hire needs to generate.
Step 4 — Assess the Revenue Return Requirement
Every hire should either generate revenue directly or free up your time to generate more revenue. Define concretely what revenue impact you expect from this hire within 60 to 90 days. For a sales hire, this might be $5,000 per month in new deals by month three. For an operations hire, it might be freeing you up to handle 30 percent more client work. Now compare: does the expected revenue return exceed the loaded cost of the hire within a reasonable timeframe? Use the Ask AI button on the Runway card and ask: I am considering hiring a sales assistant at $4,000 per month fully loaded. Runway would drop from 14 to 10 months. Given my revenue trajectory, is this a sensible hire and how long before it pays for itself? AskBiz AI will give you a data-grounded assessment.