Learning CenterGuide 19 · Building Your TeamRole sheet 6 of 8
Growth & People · When to hire
Adding a General Manager
This sheet helps you decide when to add a general manager: the signs to watch for, what the role owns, whether the math works and how to hire it right.
When every decision waits for the owner, the business can only grow as fast as one person.
Runs the day-to-day so the owner can lead, plan or exitIs it time?
Tick what's true for your company todaySigns it's time · check what's true today
Does the math work?
Example pay · 20% burden · 60.3% gross marginThe example (per year)
- Base salary (example)$110,000
- + Labor burden & benefits (20%)$22,000
- + Vehicle, phone & benefits extras$15,000
- = Loaded cost per year$147,000
- ÷ Gross margin60.3%
- = Added revenue to cover the role$243,781
Payback: A business that runs without its owner earns a higher multiple. On $500K of Adjusted EBITDA, every half-turn of multiple is $250,000 of value.
Does the math work for you?
Put in the pay you would offer and your own gross margin.
Making the hire
Hire it right
Common mistake
Hiring a GM, then going around them. If the owner overrules every call, the team keeps going to the owner.
How to pay it
Salary plus bonus on net profit or Adjusted EBITDA versus budget. Some owners add a long-term incentive tied to a sale.
The first 90 days
Day 30: meets every manager and client leader. Day 60: runs the KPI review. Day 90: owns the budget and the weekly cash meeting.
Ranges reflect common green-industry practice, not rules; your margins, service mix and the owner's strengths decide the timing. Salaries are examples only; use local market pay. Revenue needed uses the example company's 60.3% gross margin.