After years of uncertainty, lockdown disruption, and rising pressure on small businesses, many Australian entrepreneurs are rethinking how to build, scale, and survive in competitive markets.

The story of Lepa Flaiban, founder of Borek on Wheels and beverage brand Baba’s Milk, is a powerful example of what modern business agility looks like in action.

What started as a last-minute food truck decision during the 2020 lockdowns has now evolved into a multi-channel operation supplying corporate catering for major Australian banks and pushing a homegrown beverage brand into retail stores, schools, and even aviation catering.

For business owners, this is more than an inspiring story. It is a real-world case study in cash flow management, scaling strategy, product diversification, and operational risk.

What Happened?

During the COVID-19 lockdown period in 2020, Lepa Flaiban made a rapid career pivot. With a background in hospitality and public-sector work, she purchased a food truck, developed a brand identity, and launched Borek on Wheels within 24 hours.

The business quickly gained traction through social media marketing, particularly Instagram, and began operating as a high-demand food truck serving authentic Balkan cuisine across Sydney.

However, rapid growth exposed structural challenges common in hospitality businesses:

• Unpredictable daily demand
• High food wastage
• Variable revenue cycles
• Operational fatigue from constant mobility

Rather than exiting the business, Lepa made a strategic pivot toward a pre-booked corporate catering model.

Today, Borek on Wheels operates on structured event-based contracts, servicing corporate clients such as Macquarie Bank, ANZ, and large-scale construction sites. This shift significantly improved cash flow predictability and reduced waste.

Expansion Into Product-Based Business

Lepa’s entrepreneurial journey did not stop at catering.

Following a chance industry connection at a Queensland charity event, she entered the FMCG space by launching Baba’s Milk, a premium chocolate milk brand developed through a commercial canning facility partnership.

The product quickly expanded into:

• Independent grocery stores
• School canteens
• PCYC programs
• Corporate distribution channels
• Aviation catering supply chains

Despite early setbacks — including a factory production issue that led to a product recall — the brand recovered and continued to scale through strong B2B sales execution and distribution partnerships, including supply to private aviation at Bankstown Airport.

Why Does This Matter?

Lepa’s story highlights a critical shift in modern Australian entrepreneurship: the transition from time-based service income to scalable product-based revenue models.

Most small business owners remain stuck in one of two extremes:

Service-Based Businesses

• Revenue tied directly to time and labour
• Limited scalability without hiring
• High operational intensity
• Variable daily income

Product-Based Businesses (FMCG)

• Requires upfront capital and production planning
• Higher compliance and regulatory requirements
• Scalable distribution potential
• Greater inventory and supply chain risk

Understanding this transition is essential for any business owner looking to scale beyond local or lifestyle-level income.

Who Should Pay Attention?

This breakdown is particularly relevant for:

• Hospitality and catering operators managing food waste and variable demand
• FMCG founders looking to launch packaged food, beverage, or retail products
• Side-hustle entrepreneurs validating new business ideas
• B2B brands targeting corporate, education, or aviation distribution channels
• Trades and service businesses exploring scalable revenue models

What Are the Tax, Business, and Accounting Implications?

From a financial and accounting perspective, scaling across service and product-based models introduces complexity in cost structure, compliance, and cash flow management.

At Latitude Accountants, these scenarios are typically assessed through the lens of profit stability, working capital control, and structural risk management.

1. Service vs Product Margins

Service businesses such as catering often rely on fixed booking income and upfront deposits, which can improve cash flow visibility and reduce waste.

However, margins remain exposed to:

• Ingredient inflation
• Labour fluctuations
• Event variability

Product-based businesses shift the cost burden toward:

• Manufacturing and co-packing fees
• Inventory holding costs
• Freight and logistics
• Retail margin pressure

While product businesses can scale significantly, they also introduce the risk of cash being locked in unsold inventory.

2. Product Recall and Development Risk

One of the major challenges Lepa faced during Baba’s Milk’s early production was a factory-level product separation issue, resulting in a temporary recall.

From an accounting standpoint, this introduces:

• Direct production cost losses
• Logistics and recovery expenses
• Inventory write-offs
• Temporary revenue disruption
• Potential brand equity impact

Businesses in FMCG should consider:

• Product liability insurance
• Emergency working capital reserves
• Strong supplier agreements
• Quality assurance systems

3. Supply Chain and Compliance Requirements

Australian packaged food and beverage businesses must comply with FSANZ regulations (Food Standards Australia New Zealand).

This typically requires:

• Food science and lab testing
• Shelf-life validation
• Nutritional panel compliance
• Packaging compliance standards

These costs should be properly accounted for as either capitalised R&D or operational expenses, depending on structure and eligibility.

Businesses may also explore the R&D Tax Incentive where applicable.

4. Transitioning from Employment to Business Ownership

A key takeaway from Lepa’s journey is the importance of timing when transitioning from employment into full-time entrepreneurship.

Maintaining a stable income while validating a new business model reduces financial pressure and improves long-term survivability.

From a tax perspective, growing business income may trigger:

• PAYG instalment obligations
• Quarterly tax planning requirements
• Cash flow forecasting adjustments

What Should Business Owners Do Now?

If you are scaling a service or product-based business, here are practical steps to apply:

Step 1: Move Toward Predictable Revenue Models

Shift from reactive income toward structured contracts, subscriptions, or prepaid agreements.

Step 2: Understand True Unit Economics

Include all production, logistics, waste, and distribution costs in pricing decisions.

Step 3: Strengthen Brand Positioning

A strong brand allows businesses to command premium pricing and improve long-term retention.

Step 4: Build Systems for Scale

Operational systems reduce dependency on individuals and improve consistency as volume increases.

Common Mistakes to Avoid

• Scaling too early without validating demand
• Ignoring full cost structures in product pricing
• Overcommitting to large manufacturing orders
• Relying on a single sales channel (e.g., supermarkets only)
• Underestimating cash flow pressure during growth phases

Frequently Asked Questions

1. What is the main difference between service and product businesses?

Service businesses trade time for income, while product businesses rely on the scalable distribution of physical goods.

2. Why do product-based businesses require more capital?

They require upfront manufacturing, inventory, compliance, and logistics investment before generating revenue.

3. What causes product recalls in FMCG businesses?

Common causes include formulation instability, packaging failure, or compliance issues during production.

4. How important is cash flow in scaling a business?

Cash flow is critical, especially when inventory or production delays create timing gaps between expenses and revenue.

5. Should entrepreneurs quit their jobs to start a business?

It is generally safer to validate revenue first before transitioning fully into self-employment.

Final Thoughts

Lepa Flaiban’s journey reflects the reality of modern entrepreneurship in Australia — fast-moving, high-risk, but highly rewarding when executed with discipline and structure.

From food truck operations to national distribution and aviation supply chains, her evolution demonstrates the importance of adaptability, financial awareness, and strong brand positioning.

For business owners, the key lesson is clear: growth is not just about ideas — it is about systems, structure, and financial control.

Need Help Scaling Your Business the Right Way?

If you are unsure how these lessons apply to your business structure, cash flow, or tax position, speak with Latitude Accountants.

Our team can help you understand your options, stay compliant, and make better business decisions with confidence.

📍 Sydney Olympic Park | Marrickville | Melbourne | Loxton
📞 1300 706 597
📧 info@latitudeaccountants.com.au

Disclaimer

This article is intended for general information purposes only and does not constitute financial, tax, or legal advice. Outcomes may vary depending on individual circumstances. Seek professional advice before making business decisions.