Many solo founders rush to hire employees as soon as they see traction, but this post argues that premature hiring can destroy a bootstrapped business. The author calculates a minimum annual cost of 160,000 RMB (approximately $22,000 USD) for a single employee, including salary, benefits, office space, and management overhead. The key insight is that founders should only hire when their recurring revenue comfortably exceeds this threshold, and even then, consider alternatives like freelancers or automation first. This data-driven approach helps founders avoid the common trap of scaling too fast and running out of runway. The post also provides a simple decision framework: if your monthly profit after your own salary is less than 13,000 RMB, you cannot afford an employee yet. This is a must-read for any indie hacker or bootstrapper thinking about team expansion.
A practical cost analysis for solo founders considering their first hire, with a 160K RMB annual threshold.