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Why we picked it This is the practical companion to the staying-small question: it replaces gut feel with concrete triggers for when a hire is worth it. The rule it offers (roughly three months of predictable revenue covering current costs plus 1.3x the new hire's fully loaded cost) is the kind of number you can actually check against your own bank balance. It also names the three roles that usually earn the first slot (delivery, revenue, retention), so you hire against a bottleneck rather than optimism.
First Hires in a Bootstrapped Startup: A Cashflow Guide
From Startup Rally by Startup Rally about a 10 minute read
- Use a measurable trigger, not a feeling: predictable revenue covering costs plus a buffer on the full cost of the hire.
- Budget the true cost of a person (onboarding, equipment, contributions), not just the salary.
- Prefer contractors or fractional help when a full-time hire would drop your runway below your comfort line.