[tssge]

Just so you know businesses have other expenses than just salary. These can range from insurance to office space to accounting to server hosting and so on.

$1M ARR is not very much when you have almost 10 employees. This would be considered rather modest. Generally the rule of thumb for me has been that each €100k ARR is an absolute minimum to hire an additional employee, thus €1M ARR would be an absolute maximum of 10 employees.

[diggan]

> $1M ARR is not very much when you have almost 10 employees.

You're talking from the perspective of the company, I was specifically replying to the "this is still only $125k each -- that's hardly big money" part, which I thought was very clear since that's the part I quoted.

Besides, parent already went through those, their back of the napkin guessestimate is after other expanses. Click the "parent" link next to the timestamp if you're having troubles finding it.