Build the current baseline

  • Recurring monthly revenue and gross margin
  • Current payroll and fixed operating costs
  • Cash balance and restricted or committed amounts
  • Receivable collection timing and known seasonal patterns
  • Debt, tax, and owner payment obligations

Estimate the full cash commitment

Compensation, payroll taxes, workers compensation insurance, unemployment insurance, benefits, equipment, software, recruiting, training, workspace, and management time may all affect the decision. In North Carolina, workers compensation coverage is generally required once a business regularly employs three or more people, so confirm whether this hire crosses that threshold. The applicable items depend on the role and employment arrangement.

Define the result and runway

State what the hire is expected to improve, such as capacity, response time, sales coverage, delivery quality, or owner time. Then estimate how long the business can support the role before that benefit appears and compare scenarios rather than relying on one forecast.

Make it specific

A guide can prepare the question. Your facts determine the answer.

Use this resource to organize the conversation, then confirm the right scope and next step for your situation.

Explore CFO advisory

Sources and scope

This guide is general educational information, not accounting, tax, or legal advice for a specific situation. Rules change and individual facts matter, so confirm how any of it applies to you before you act on it.