Something in the world of floating have you stumped?
Show Highlights
Do you need a business plan if you’re not building a business from the ground up?
Graham and Ashkahn chime in and give a solid “maybe” as a response. It depends on a lot of factors, for sure. Do you already have financing? Are you maintaining the existing business model or revamping it?
Show Resources
FTS Product – Business Plan Package
Listen to Just the Audio
Transcription of this episode… (in case you prefer reading)
Ashkahn: Hey, everybody.
Graham: All right, another day, another podcast.
Ashkahn: Yep, yep. We actually have a slogan now, huh?
Graham: Kind of. I’m Graham.
Ashkahn: I’m Ashkahn.
Graham: And today’s question is, “I’m buying an existing float tank …” man, a lot of purchasing float tank questions.
Ashkahn: Recently, yeah.
Graham: Yeah, recently. All right, so, “I’m buying an existing float tank center. Do I still need to have a business plan?” Well-
Ashkahn: Yeah, you should definitely purchase one from some sort of reputable float tank business plan company, I would say. That would be my advice.
Graham: Not all business plans are made equal, okay?
Ashkahn: There’s really only one, I think, that would be justified to purchase.
Graham: Yeah, there’s only one that’s made equal to itself. That’s it. That’s ours.
Well, okay, so there’s two ways to look at this, right? Or I guess there’s just different levels of business plan and business planning, and you didn’t capitalize yours. You obviously mean lower cased business plan.
Ashkahn: The informal.
Graham: Yeah, but should you have a plan of how you’re going to run your business and staff it and market and make a profit and all those kinds of technical details? Absolutely. I mean, you need them. You’re about to run a business, you know?
Ashkahn: You should have a plan.
Graham: Yeah. So, in that sense, you need to plan.
Ashkahn: For your business.
Graham: In the other sense, like, do you need a robust-
Ashkahn: Business Plan.
Graham: …30 page written business plan and five years of projected financials and kind of this more robust, capital B-P Business Plan? I mean, only if you’re financing the purchase of your float center, really. In that sense, it’s the same way as if you were building this from scratch, which is, it’s going to cost money to purchase and you can often get loans or investment for a purchase of something as well, just like you can for building it out. So if you’re doing that, then you probably need to have about the same diligence with your business planning that you would if you were starting from scratch. I guess the nice thing is some of those numbers can be filled in with the business that you’re taking over. Rather than needing to make projections for what your first year is going to be when you’re drawing on a totally blank canvas, you have someone to give those to you, and as far as things to market and what their usual customers are that are coming in.
A lot of these things that are guesses before you’re getting into a new business are solid and, again, should be provided in a really nice form by the people you’re purchasing this thing from. So, it’ll certainly make the planning easier.
Ashkahn: Yeah, I mean, yeah. A lot of times people are making business plans to go to a bank or investors or something like that, and finance the start-up costs, and if you are needing to finance the purchase of another float center, they might ask you for a business plan in that context, too.
Graham: Yeah, they likely will.
Ashkahn: It’s just going to be a different sort of beast in either way, right? When you’re writing a business plan to get a loan to start up a float tank center, you’re talking about, like, “Here’s the type of space I’m going to be looking for, here’s why I think this neighborhood would be good.” You’re making a lot of projections about why you think this area would enjoy a float center and there’s just so much more kind of intangible stuff going on there than if you’re purchasing an existing business that has already a track record of how many customers are coming in. Like, the bank’s probably going to want to know what are you going to do to improve these numbers or get this profitability higher or-
Graham: Or why is buying a float tank center here especially valuable right now?
Ashkahn: Why are they selling it? Why is it even up for sale in the first place? Those are the sorts of questions. And if you’re financing it yourself, this could be a lot more casual. You may just have that information from the float center you’re buying it from and even maybe have operational information.
Graham: I was going to say, an operations guide in that case is almost more … well, I don’t know, there’s still the whole marketing side of things and how are you going to make this valuable and in that sense, it is more operational. It’s kind of like the logistical business plan of how are you going to do this, and rough costs. Like, roughly what are my utility costs going to be per month, and hopefully, like Ashkahn was saying, that’s provided by the center you’re purchasing, and a lot of those variables will be stable. You still need to figure out what the heck you’re going to do when you take over these keys and grab your center. That’s going to exist no matter what.
Ashkahn: But yeah, I mean, with the capital B-P, I wouldn’t … if the center has finances you can look at and the basics of running their place-
Graham: If they’re not going for a loan.
Ashkahn: If they’re not going for the loan. If some of that stuff’s already there, I wouldn’t be tempted to sit down and write a formal 50-page business plan.
Graham: I’m pretty anti-business plan except for the purpose of raising money. I think a lot of that time that you’re going into detailed financial projections for five years could be better spent on-
Ashkahn: Running something in the real world.
Graham: … a little more day-to-day kind of things. So, I think we’re on the exact same page for that. So, again, the answer is maybe, for whether or not you need a business plan, but you definitely need a firm sense of operations and an operational plan for what you’re going to start instituting right when you take over.
Ashkahn: Yeah, especially because you’re flying a plane mid-flight at that point. The thing’s got to keep running from when you take it over.
Graham: Maybe you’ve never been a pilot before.
Ashkahn: Maybe the wing’s a little broken. All right, well, go dream about that for a while, and if you have any other questions, go to FloatTankSolutions.com/podcast.
Graham: Yeah. You can type those in, letter by letter.
Ashkahn: Yeah, and the little typewriter that we place behind our eyeballs will type them into our brain in sync.
Graham: I’m going to think about that now.
Ashkahn: Type that out .
Graham: I can’t get that out of my head. All right.
Ashkahn: Bye, everybody.
Graham: Talk to you guys later.
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Latest Blog Posts
The Float Tour Blog – Issue #24
Alberta is often called the Texas of Canada. Part large oil industry, part cattle country.
Don’t Mess With Alberta!
At the base of the Rocky Mountains, replete with an Olympic Stadium, Calgary is a world-class destination for winter sports. The float community developed here similarly to Edmonton – there wasn’t anything nearby except for one or two residential float tanks, and then, in a short period of time, several centers opened all at once. Instead of competing, they’ve decided to work together and have developed one of the tightest knit float communities we’ve seen. They even have monthly Float Dinners, much like we do with the float centers in Portland. They don’t keep meeting minutes, so it’s hard to determine what they talk about at these dinners; my guess would be salt, the effects of salt on various substances, and how salty salt damage can make someone salty.
The Float Tour Blog – Issue #23
After Montana, we blazed our way back into Canada. The drive was long, but the scenery was beautiful. We followed the Rockies north, driving up to Edmonton. It’s a bit of a detour but, there are so many float centers in Edmonton, it seemed crazy not to stop by.
The city itself is primarily made up of workers from the oil fields – high risk, high income jobs that fuel the economy. At least until recently. Our visit was right in the middle of the Fort McMurray wildfire which has displaced a lot of the workforce, forcing 100,000 people to leave their homes. Many came to Edmonton, being the nearest metropolitan area to Fort McMurray. Some already split their time between the two cities, living in Edmonton and traveling to Fort McMurray for weeks or months at a time for work.
It’s understood that, in economic hardship, luxury commodities are typically the first thing people cut back on. Surprisingly, this doesn’t seem to be the case for floating. In fact, more people seem to be trying it to help alleviate the stress, many centers even offering free or discounted services to those displaced in an effort to help in a small way.
The Float Tour Blog – Issue #22
We’ve got two more stops in Colorado Springs before heading west. It’s a town known for its military base and long history of weapons testing. With such a large military presence, it comes as no surprise that the float center owners here are veterans, themselves.
After that, we shoot across to Salt Lake City. Utah is filled with gorgeous sights, from breathtaking lakes to stunning painted hills. With an international landmark famous for its effects on buoyancy, Salt Lake City should be pretty familiar with the concept of floating. With five different float centers, and the manufacturer of the Zen Tent out there, there could be some cause and effect.
After that, we head up into Idaho and Montana to close out the Central United States portion of our Tour. We’ll follow the Rocky Mountains north, taking in the scenery along the way.
The Float Tour Blog – Issue #21
Denver has been home to a vibrant float community for a long time. Some of the earliest commercial centers that started up in the ‘70s and ‘80s were out here. 30 years is a long time, and most of the old centers aren’t around anymore, but there’s a conscious community that has been floating since the old days and they love how much the industry has evolved and grown.
