LOGIC:The SaaS model inherently boasts high gross margins (estimated 75%+) due to low marginal cost of software delivery once developed. However, London's operational costs disproportionately erode net profitability. Rent for a modest central London office (e.g., Shoreditch, Southwark) for 5-7 employees is projected at £4,000-£8,000 per month for the upcoming period, exacerbated by business rates. Labor costs are significant: a senior SaaS engineer will command £80,000-£120,000 annually, and a competent B2B sales lead £60,000-£90,000 (excluding commission). Marketing spend to cut through the noise in London's dense market is also higher. Assuming an average ARPU of £800/month per SME, a significant volume of subscriptions (200-300+) will be required simply to cover fixed London overheads before meaningful net profits emerge. The high fixed cost base demands rapid scale to achieve healthy net margins, making initial months brutal.