Startup Funding Espresso -- Financial Projections: Personnel Expenses
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In setting up for your financial projections model, personnel is straightforward to forecast. Each employee has a salary, benefits, and payroll taxes.\xa0\xa0 Payroll taxes are a calculation off of the salary.\xa0 Commissions need to be included but are variable expenses related to sales.\xa0\xa0 Benefits include things such as healthcare, retirement plans, and the like, and are defined by your providers. As you grow headcount, it\u2019s clear how much the budget will increase.\xa0 Those related to the product production and delivery will go into the COGS section.\xa0 Those related to sales, marketing, research and development, and administration, will go into the operating expenses. You may want to divide the personnel into divisions such as sales, marketing, and product development.\xa0 You can keep the contractors in a separate category as well. For part-time employees, compile them into an FTE or full-time equivalent employee for the calculation.\xa0 A key metric is revenue to number of employees. Check your number against your industry standard. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today.-----For more episodes from Investor Connect, please visit the site at: Check out our other podcasts here: For Investors check out: For Startups check out: For eGuides check out: For upcoming Events, check out For Feedback please contact info@tencapital.group