How do I know if my business can afford to recruit?

Salary is only part of the commitment. Include employer costs, pension, recruitment, equipment, software and any other costs associated with the role.

Ask when the cost starts and when the additional capacity or revenue is likely to produce cash. A profitable hire can still create a short-term cash gap that needs funding.

Consider what happens if revenue is lower than expected, the hire takes longer to become productive or an existing customer is lost. A decision that only works in the best-case scenario is a fragile one.

The question isn't only 'can we pay the salary?'. It's whether the role solves a real constraint, supports the strategy and produces enough value to justify the ongoing cost.