Hiring Plan - 5-Year Ramp-Up Financial Model
  • Hiring Plan - 5-Year Ramp-Up Financial Model
  • Hiring Plan - 5-Year Ramp-Up Financial Model
  • Hiring Plan - 5-Year Ramp-Up Financial Model
  • Hiring Plan - 5-Year Ramp-Up Financial Model
  • Hiring Plan - 5-Year Ramp-Up Financial Model
Originally published: 09/05/2018 14:09
Last version published: 04/03/2019 07:48
Publication number: ELQ-93960-5
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Hiring Plan - 5-Year Ramp-Up Financial Model

A tool to estimate hiring needs per 3-month forward revenues.

Description
Typically you see ramp-ups like this for a sales team and then there are tiers or definitions for how many of a certain hire type you need per how many other higher level hires are above them.

This model breaks it down so you can define the amount of hires needed per a set amount of 3-month forward revenue. You will be able to define this individually for Account Executives, Sales Managers, Customer Service Reps, R&D, and a miscellaneous category.

For example, you can say for every 3 months of $500k planned revenue you want to have 2 AEs, 2 Sales Managers, 5 CS reps, and 1 R&D person. Based on what you enter for the fully loaded annual salaries of each hire type, the model will calculate how many total personnel will be needed in each category as well as the associated monthly cost.

In that example above, if your projected revenue for the next 3 months were 1.5 million, it would triple whatever initial head counts you entered for every $500k block of revenue.

The model goes out for a period of 5 years and for revenue you will just enter a starting monthly revenue that can increase with an annual rate. Note that the logic is so you will see monthly growth in revenue based on what the annual rate is. This is because the CAGR (compounding average growth rate) was backed into so it knows what your revenue must grow to per month in order to reach the annual growth rate.

Plenty of charts and visuals are available as well. There is also a google sheet version included. (the link is in the model itself).

This Best Practice includes
1 Excel template and 1 tutorial video

Acquire business license for $45.00

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Further information

Help forecast hiring needs and revenue growth.

If you need help estimating costs of various hiring scenarios.

Not going to help as a full financial model. It just has revenues and team costs.

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Discussion feed for Hiring Plan - 5-Year Ramp-Up Financial Model

The user community and author are here to help. Go ahead!

  • Gina LeMay
    Is it possible to modify the model to align with a Fiscal Year?
    arrow_drop_uparrow_drop_downReply reply
    • Jason Varner
      It is formulated to start on the first month of the year. You can override the formula by simply entering the first month of your fiscal year in cell C3 on the 'detail' tab and that will show you the fiscal year. That modification would also require you to change the numbers in row 2 so the numbers match the fiscal year. Alternatively, you can just hide the month row 3 and put in the first month of your fiscal year and it would report on the months of your fiscal year accordingly without having to change anything else.
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