We're at a point where we need to hire at 1-2 employees, and I'm not sure how much cash to have on hand. We're a SaaS product, with growing traction and on target to be cash-flow neutral next year. Until now, it's been the founders working on the company along with contractors. Peldi, the Balsamiq founder's opinion on this was to hire when you're feeling that you're about to die (we're there) and you have one year of salary for the hire in reserve (we're not there).
Complicating matters a bit further, half of the company is in Europe, and I have a tough time in general explaining the differences in social benefits to my European counterparts (that a US FTE isn't entitled to healthcare, for example). For instance, a European worker can sign on for a 9-month gig without impact to their health insurance. Not in the US.
Can anyone offer some experience here - Mainly I'd appreciate any wisdom from others who had to calculate when they had enough cash to hire someone. If anyone has any insight to explaining US hiring variables to EU folk, that'd be a bonus