The Heuristics of Forecasting with Brian Weisberg, CFO at Tidelift
The Role Forward: A Strategic Finance Podcast
Non-headcount expenses and burn considerations for businesses
There are various expenses to consider in addition to headcount, such as software tooling. On average, businesses might spend around $200 to $300 per person per month on tools like G Suite, Slack, and Zoom. Sales and customer service teams may have higher expenses due to additional tools like Salesforce, Zendesk, and Gong. These expenses can range from $600 to $750 per person per month. Discretionary sales and marketing expenses will depend on CAC and payback expectations. Early on, it could be around 20% of gross burn and later around 20% of overall sales and marketing investment. This is because new companies need to build awareness and attract website traffic, which can be costly.
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