Interviewer view · keep this screen to yourself

A software startup wants to hire two salespeople now

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

Fictional and illustrative. A startup in Singapore sells booking software to clinics for SGD 300 a month. Its gross margin is 80 percent. Winning a clinic costs SGD 3,600 in sales and marketing. About 2 percent of clinics cancel each month. It has SGD 900,000 in the bank and spends SGD 75,000 more than it earns each month. The founder wants to hire two salespeople at SGD 12,500 a month each. Should they hire now?

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

Does growth create value, and can the company afford it before the cash runs out?
- Value of a customer: monthly contribution, payback time, lifetime contribution against the cost to win
- Cash: months of runway now and after hiring
- Ways to shorten payback before scaling

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Monthly contribution per clinic
What a strong candidate does: The SGD 300 price at an 80 percent gross margin.
Monthly contribution per clinic (SGD): 300 × 0.8 = 240
Step 2: Payback
What a strong candidate does: The cost to win a clinic divided by its monthly contribution.
Months to pay back the cost of winning a clinic: 3,600 ÷ 240 = 15
Step 3: Lifetime contribution
What a strong candidate does: With 2 percent cancelling each month, a clinic stays about 1 divided by 0.02 months on average. Multiply by the monthly contribution.
Lifetime contribution per clinic (SGD): 240 ÷ 0.02 = 12,000
Step 4: Lifetime value against cost to win
What a strong candidate does: Lifetime contribution divided by the cost to win a clinic.
Lifetime contribution / cost to win (times): 12,000 ÷ 3,600 = 3.33
Step 5: Runway today
What a strong candidate does: Cash divided by monthly burn.
Runway today (months): 900,000 ÷ 75,000 = 12
Step 6: Runway after hiring
What a strong candidate does: Add two salaries of SGD 12,500 to the monthly burn.
Runway after hiring (months): 900,000 ÷ (75,000 + 2 × 12,500) = 9

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

Do not hire the two salespeople yet. Over its life, each clinic is worth about 3.3 times what it costs to win, so growth creates value. But it takes 15 months to earn back the cost of winning a clinic. The company has only 12 months of cash, or 9 after the two hires. More sales now would spend cash that comes back only after the money has run out. First shorten payback. Offer the next 20 clinics a year paid in advance, with a small discount. Also try a cheaper channel, such as referrals from existing clinics. Hire once payback falls below about 9 months, or once new funding is agreed.

Risks a strong answer names: The 2 percent monthly cancellation rate rests on little history; A rival may win the market while the startup waits.

Next steps: Test a year paid in advance on the next 20 clinics; Start funding conversations now, since raising money takes months.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.

Next: another case in Partner mode

Swap roles and run the next case, so you both practise answering and scoring.

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