Guide

Hiring ahead of revenue without breaking the month a practical guide.

Every hire is a bet. The way to size it is to fund the ramp, not the salary.

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Overview

Every hire is a bet. The way to size it is to fund the ramp, not the salary.

Count the ramp

A new technician or salesperson takes weeks to generate their cost. Add salary, benefits, tools and training for the ramp period, usually two to four months, and that is the amount at risk.

Check the demand

Look at your backlog. If there is scheduled work that cannot be served without the hire, the case is strong. If the plan relies on winning new work, make a smaller bet first.

Fund the gap, not the year

A request that covers the ramp, repaid out of the added revenue, is straightforward. A request that covers a year of salary invites a payment that outlasts the benefit.

Set a decision point

Decide in advance what the person should be producing by month three. If they are not, you have an early, honest signal rather than a slow drain.

Typical starting points

Monthly revenueTypically from around $20,000 a month in deposits for Canadian files. The exact line varies by funder and by file.

Time in businessTypically about 12 months. Newer businesses can be reviewed, but the options narrow.

Account healthLimited low-balance or negative days. Funders read the last few months of bank statements for this.

CreditScores from 500 are considered. A score of 600 or higher opens more options and better offers.

DocumentsA signed application and recent business bank statements, typically the last four months.

Existing advancesFiles with an existing advance can be reviewed, including second position.

Takeaways

Fund the ramp, not the year
Hire against scheduled work where you can
Set a month-three check

Common questions

How long is a typical ramp?

Two to four months for many roles, longer for sales positions with long cycles.

What if the hire does not work out?

That is why a decision point at month three matters. It gives you a chance to adjust early.

Should I hire two at once?

Only if work is already waiting for both. Otherwise stage them.

Keep reading

GuidesPractical guides for Canadian owners GlossaryPlain-language definitions Funding requirementsTypical starting points for Canadian files Documents you needWhat to have ready before you apply Funding use casesPayroll, inventory, expansion and more

Educational information only. It is not legal, tax or accounting advice.

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