Turn your hiring plan into a financial decision you can understand.
Musterwerk GmbH wants to hire two additional skilled employees. In this invented example, I show how I connect orders, payroll and payment dates, and which assumptions determine the right timing.
The initial conversation is free and without obligation. No financial documents are needed in advance.
The business, people and figures are invented.This case illustrates my approach. The workshop image is an AI-generated illustration of the fictional business.
Illustration of the fictional business and its planned employees. This is not a Deistermind client or team photograph.
20existing employees
+2planned hires
12 monthscommon comparison period
01
Additional orders need additional capacity.
The fictional business builds and installs interior fittings. More work is available. Its owner is considering whether two new employees should start in April or July.
What the case assumes
The business employs 20 people. For this example, we assume sufficient additional demand to use the new capacity after onboarding. Existing invoices are paid the following month.
What needs to be understood before hiring
Which hours can actually be billed? What additional costs arise? When do customers pay? And how does a later start change the contribution to profit?
02
Your records become assumptions you can trace.
In a real project, I use the records already available and clarify missing information with you. Every value here is invented. The source of each important assumption remains visible.
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Record or estimate
Model input
What I clarify
Management accounts and cost records
Existing revenue and recurring costs
Recurring costs and one-off effects
Bank balances and unpaid invoices
Opening balance, amounts and payment dates
Which payments can be planned reliably
Orders and capacity plan
Additional work and billable hours
Confirmed demand and realistic utilisation
Hiring plan
Start date, total cost and onboarding
Full costs and the ramp-up period
1 · Inputs in the example workbook
An actual extract from the calculated workbook. Blue values can be edited. Hiring month 7 means July; invoices for additional work are paid the following month.
03
Two employees: what does the additional work contribute to profit?
Once the employees are fully productive, the fictional business allows 160 hours per employee each month. Of these, 75% are billable. Assumed net revenue is €65 per billable hour.
01 · Output
Additional monthly revenue
2 × 160 hours × 75% × €65
€15,600
This assumes enough additional orders to sell the capacity.
02 · Recurring costs
Payroll and materials
2 × €5,200 + €15,600 × 20%
€13,520
Payroll includes assumed employer costs; materials and subcontracting are added.
03 · Profit
Additional profit contribution
€15,600 − €13,520
€2,080
Per fully productive month, before other costs and income taxes. One-off onboarding costs are additional.
What utilisation covers these recurring costs?
€10,400 payroll ÷ (€65 revenue × 80% after materials) = 200 billable hours for both employees combined. That is 100 hours per person, or 62.5% of the assumed available hours. One-off onboarding and any other required costs still have to be covered.
Onboarding is part of the calculation.
Billable output is 40% in the first month, 60% in the second and 75% from the third. A further €6,000 of recruitment and onboarding costs arises in the first month.
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Since hiring
Billable share
Additional net revenue
Profit contribution incl. onboarding
Month 1
40%
€8,320
-€9,744
Month 2
60%
€12,480
-€416
From month 3
75%
€15,600
€2,080
The first month includes the one-off €6,000 onboarding cost. €2,080 is the contribution once fully productive, not a profit promise for the whole business.
2 · From planned hours to the monthly calculation
An actual extract, April case. Columns D–F cover January–March, G April, H May, I June and J July. The first customer payments follow the hiring month.
04
Work happens first. The payment may follow later.
In this case, additional work is invoiced in the month it is performed. Customers pay the next month. Payroll and materials are paid in the current month.
First month-€18,064
No receipts from the new work yet. Payroll, materials and one-off onboarding costs are paid.
Second month-€4,576
The first customer invoice is paid. The new employees are still ramping up.
Third month-€1,040
The higher revenue earned in month three will be paid the following month.
From month four€2,080
With unchanged assumptions, receipts and recurring payments settle into a regular pattern.
Simplified cash calculation for the additional capacity, excluding VAT. It requires €23,680 of funding by the end of month three. The full comparison also includes VAT and the existing business.
April adds profit sooner. July leaves more financial room in this case.
Both cases cover January to December 2027 and use the same plan for the existing business. A later start moves payroll, additional work and customer payments together.
What this means for the decision
An April start adds €6,240 more profit contribution by December than a July start. However, its lowest cash balance is about €6,483 below the agreed reserve. If that reserve must be maintained, this calculation favours July. To start in April, the business would need to examine financing or different payment arrangements, for example.
The start-year contribution is €4,400 for April and −€1,840 for July. Both cases recognise all onboarding costs in 2027. For a longer-term expansion decision, I would extend the plan beyond December.
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2027 measure
Hire in April
Hire in July
Additional net revenue
€130,000
€83,200
Additional profit contribution
€4,400
-€1,840
Lowest month-end cash balance
€53,517 (June)
€67,415 (July)
Shortfall against the reserve
€6,483
€0
Cash at the end of December
€163,282
€157,042
Common period: January–December 2027. New invoices paid the following month. Cash balances include the existing business; profit contributions relate to the additional hires.
06
Change an assumption and follow its effect.
This demonstration contains four calculated cases. Compare the hiring month and the timing of payment for additional work. All other assumptions stay the same.
Cash in the tightest month€67,415July 2027 · planned month-end balance
Shortfall against the reserve€0€0 means the reserve is maintained
Additional profit contribution-€1,8402027, before other costs and income taxes
Cash at the end of December€157,042including the existing business
Planned cash balance of the whole business
Scroll the chart sideways to see all months. →
Hire in AprilHire in July€60,000 reserve
July start: July closes with €67,415 after planned payments, €7,415 above the agreed reserve. Additional profit contribution through December is -€1,840; all onboarding costs fall in the start year.
See the full monthly cash plan
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Selected case: hire in July, payment the following month.
Month in 2027
Customer receipts incl. VAT
Total payments
Closing cash
Additional profit contribution
January
€160,650
€168,935
€121,715
€0
February
€166,600
€171,385
€116,930
€0
March
€172,550
€210,255
€79,225
€0
April
€178,500
€171,080
€86,645
€0
May
€178,500
€176,285
€88,860
€0
June
€184,450
€195,520
€77,790
€0
July
€196,350
€206,725
€67,415
-€9,744
August
€224,101
€204,480
€87,036
-€416
September
€235,001
€220,875
€101,162
€2,080
October
€232,764
€202,114
€131,812
€2,080
November
€220,864
€198,999
€153,677
€2,080
December
€214,914
€211,549
€157,042
€2,080
What other assumptions are included in the full model?
The monthly plan covers the entire fictional business. It separates profit and payments: depreciation reduces profit, while loan principal reduces cash. Tax payments are fixed example amounts.
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Basis
Invented assumption
Opening cash
€130,000
Existing business
20 employees; €80,000 monthly payroll; materials at 30% of existing net revenue
Other recurring costs
€15,000 net per month, of which €10,000 is VAT-eligible in the example; plus €1,000 interest
Financing and equipment
€5,000 monthly loan principal repayment; equipment bought in March for €18,000 net
Depreciation
€3,000 monthly for existing assets, plus €300 from the equipment purchase
Other taxes
€15,000 paid in March, June, September and December
VAT
Invented model assumption: 19% on revenue and stated VAT-eligible costs; settled the following month
Existing customer payments
The following month; January collects the preceding December’s €135,000 net revenue
VAT treatment here is a simplified model assumption, not tax advice. Actual treatment and payment dates are established from your records and, where needed, with your tax adviser. Month-end balances do not show intra-month shortfalls; where needed, I plan short-term cash by week or due date.
07
After handover, you keep working with your own inputs.
The model is an editable working tool. I explain which fields to update, how to compare alternatives and what the results can tell you.
Enter new information For example, the current bank balance, new orders and revised payment dates.
Change assumptions Such as the hiring month, expected utilisation or payroll costs.
Interpret the outcome Review the updated forecast and whether the conditions behind your decision still hold.
A fictional demonstration with one active monthly plan. Inputs can be edited. The individual scope for your business is agreed before a project begins.
3 · The calculated overview
An actual extract, July case with payment the following month. Month 7 means July. Negative values are shown in brackets. Results link to the monthly plan.
08
How I build the model for your business.
I start with your decision and the records already available. I develop the relevant calculations, examine the important assumptions and explain the results. You work directly with me.
Roman Braun · Founder of Deistermind
01 · free
Initial conversation
We clarify the question, the available information and a useful next step.
02 · before engagement
Scope and fee
You receive a proposal for the outcome, information needed, timeframe and fee.
03 · delivery
Model and alternatives
I adapt the plan to your business and calculate the agreed options.
04 · handover
Keep using it
I explain the inputs, calculations and use. Ongoing support is available if needed.
Which decision would you like to calculate for your business?
In a free, no-obligation conversation, you describe your situation. I then propose the analysis or model that would help. Confidential records are only sent once we have agreed a secure exchange.
