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Plasmoidtoday at 1:28 AM1 replyview on HN

I think you're over-estimating how much slack there is in the organization.

A rule of thumb is that benefits cost an employer 25-30% of salary. So you're already pushing to 50% of revenue going to direct salary costs. Then there are employees in non-revenue roles (HR, legal, accounting, IT, etc...) and employees doing non-revenue work.

Finally, you have rent, licensing, insurance, and all the other fixed costs.


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WalterBrighttoday at 4:37 AM

An awful lot of businesses go under from underestimating what their expenses inevitably will be. Everyone they deal with has their hand out to get paid.

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