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Startups: What average cost/head should be used for forecasting the cost or burn of an early startup team? (ie. $1mm covers a team of 5 for two years)
MF
MF
Mark Fackrell, Outsourced CFO Services answered:

You need to do a more detailed forecast, I don't think there is any particular "rule of thumb". This will vary depending on the industry and type of people you need to get you started. it will also depend on the type of equity packages you can get your people to agree on.

Initially you just need a basic forecast that covers headcount and any other major expense, but at time goes on you will need to get more and more detailed.

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