Their new digital point-of-sale system is popular, but being in business is expensive. The pair don’t want to raise prices or lose any of their five employees, so what can they do?
Merryn and Leni book an appointment with their accountant to look for other ways to improve their finances.
Using figures from their income statements, the accountant finds operating costs have ballooned. The company started in the spare room in their apartment. It quickly grew, so the pair moved the company into a converted warehouse in the inner suburbs.
With their lease up for renewal, now is a great time to explore other options. One of Leni’s contacts suggests a new co-working space aimed at tech firms. Its flat rate includes rent, furniture, wifi, electricity, kitchen supplies, and in-house mentors. This will halve their operating costs.
When Merryn and Leni find out the co-working space hosts regular pitch events to connect businesses with potential investors, they decide to move in.
See their before and after figures in this sample profit and loss statement