It’s between $1 million and $10 million that the team needs to focus on cash. Growth sucks cash, and since this is the first time the company will make a tenfold jump in size, the demands for cash will soar.

The key to affording higher wages (we’re talking frontline employees, not senior leadership) is a lower total wage cost as a percent of revenue.

For an excellent overview, read Geoff Smart and Randy Street’s book Who: The A Method for Hiring; to learn the details of the process, read Bradford D. Smart’s book Topgrading: The Proven Hiring and Promoting Method That Turbocharges Company Performance.

If you are creating a high-performing team and building for the future, you need to hire for potential as well as experience.

Anyone KSF hired would have a hard time living on the salary offered. In not very much time, I think the new hires would be in debt to the company. That’s an old company-town trick—get people into debt, hang on to them, and work them harder. Debt slavery.