Will Schroter

You just don't hire another one until you've fully utilized the ones you've got.

It's kind of that simple.

And the economics don't mean anything.

You can choose to pay W-2 versus 1099, just like Uber can, any rate you want.

It doesn't mean you have to pay 1099 cheaper or W-2 cheaper.

You're the one setting the rates.

And so if you knew that moving from 1099 to W-2 was going to incur more costs, you would just pay people less.

Well, remember too, your utilization is what's floating, not so much your headcount.

So let's say that you have 100 hours to fill this month, but then 80 hours to fill next month.

Well, in that case, sure.

You're going backward and you have 20 less hours that you can bill.

You just don't hire another person.

But you're constantly managing that utilization every single day to get a feel for where you should be.

Every ad agency in the world, every professional services company in the world does this for a living.

They just didn't.

Well, that's the thing.

Nothing happened.

It was a fluke financing issue that really kind of tripped this whole thing up.

And Jason wasn't wrong.

Things were going incredibly well.