Projecting revenue is an important component of the planning process as a business owner, but it’s also a dangerous metric to hire against.
When you assemble a team and assume a payroll based on how you hope things will play out, as opposed to how the business is actually performing, you do two things:
First, you set yourself, the business owner, even further away from taking a paycheck than you currently need to be.
Second, you take away any chance you have of actually finding your business’ breaking point. How are you supposed to determine what your actual capacity is if your operation is perpetually overstaffed and underworked?
If the goal is to build something that scales, you’ll never pull it off without knowing what you and the average employee are capable of handling.
Stop hiring on best-case scenario projections. Hire when you’re busting at the seams. Hire when it hurts.
-Pete
PS: Whenever you want even more BFU in your life, here are some free resources: