Something in the world of floating have you stumped?
Show Highlights
Being strapped for cash isn’t a fun situation to be in. With an operating business, you have options, fortunately.
Graham and Ashkahn brainstorm some ideas for quick cash and some they’ve even used at Float On when a surprise expense has come up. It’s worth noting that to get money in the short term, you’re likely sacrificing something in the long term.
Listen to Just the Audio
Transcription of this episode… (in case you prefer reading)
Graham: Today’s question is, hilarious, sort of. And desperate. It’s: “I need a huge influx of cash right now, what are some things I can do to raise some quick funds?”
Ashkahn: Oh boy.
Graham: Well, first of all, we’re probably not actually releasing this tomorrow so, hopefully this podcast gets to you in time.
Ashkahn: Yeah, how urgent is this?
Drugs are a very profitable industry to be in.
Graham: I think we have at least three kidneys.
Ashkahn: You could … selling your plasma? I’ve heard that’s a … that’s a quick buck right?
Graham: Faking a fire? And claiming insurance money? Actually, that sounds really long term-
Ashkahn: Solves all your problems. That’s true.
Graham: Probably years-
Ashkahn: There’d be an investigation, and you’d have to do the jail time.
Graham: Years for insurance claim … yeah, you’d be serving time for that, yeah.
Ashkahn: Yeah, that’s hard because …
Graham: Whenever you need something specific and you need it right now, is the hardest time to get it.
Ashkahn: Yeah.
Graham: The more ambiguous your goals are, and the more that they can be done in the future, the easier it is to eventually accomplish them. So money right now is one of those things where, you’re gonna probably have to sacrifice something in order to get it. Again, toes, kidney, plasma …
Ashkahn: So there’s a few ways to do this with your float center. And they basically just involve running sales mostly, if you really need money right now.
Graham: Yep.
Ashkahn: So Groupon in one way of getting an influx of cash, although, they hold on to some of your money. But you still get a decent check within, what, a week?
Graham: Yeah, a couple weeks.
Ashkahn: Something like that?
Graham: Yeah, and running your internal sale. If you have a big mailing list, if you have a good Facebook following, just blasting out … and when I say, when I was kind of alluding to sacrificing something earlier, what I actually meant is, even something like running a sale, you’re really sacrificing future sales. In exchange for getting sales right now. Because, presumably, the people who are buying these floats at a discount could potentially be full-price float purchasers. Maybe just not right now. If you’re trying to get that money immediately…
Ashkahn: Yeah, and if you’re not sacrificing that, you’re sacrificing your perceived value and how much people are used to paying for floats. The more sales you do, the more you’re just getting people not used to paying full-price.
Graham: But, sometimes you just need that, and-
Ashkahn: You need the money-
Graham: And that’s fine. We’ve definitely run sales and treated our floats almost as a line of credit.
Ashkahn: Yeah for sure. Almost … most of our Groupon or sales situations, I think, have been originally motivated by some sort of construction cost that we needed to find money for immediately.
Graham: Yeah. Pretty much, if you’ve been following us for a while you we only run two sales during the year. One in December and one in June, and so anything outside of that … if you ever see a discount at Float On in April, it’s probably because we needed to replace a set of floors or something.
Ashkahn: Something’s wrong. Something’s wrong with us.
Graham: Yep.
Ashkahn: And that’s … those are your most immediate options. Other than that, you could go to the bank-
Graham: Yep, having a line of credit with the bank is actually-
Ashkahn: A line of credit is cool. And it’s usually the lowest interest of almost any way of lending money from a bank. It’s good to set that stuff up when you don’t need it, so that it’s there when you do.
Graham: So that it’s there when you do. Yeah.
Ashkahn: But often, if you have a few years of being in business and you have a healthy bank account history, then … from what I can tell, and I don’t know too much about this, getting under a hundred thousand dollars in a line of credit is generally not the craziest thing in the world. And often, just requires the approval of whoever’s working the business desk at the bank. So if you’re going for a low amount like that … and usually even you pay it back in a certain amount of time, I don’t think there’s any interest on it?
Graham: Yeah, for sure.
Ashkahn: So that’s definitely a good thing to have in your back pocket.
Graham: Yeah, there’s also … it depends on when you’re expecting money coming in, and what you need it to pay for. But on the paying-for side, often there’s way more leeway there than you might imagine-
Ashkahn: Right, for … especially for construction stuff.
Graham: Yeah, the ability to push back some of your costs by a month, or a couple months, is … you have way more negotiation leeway there than you might think that you do. Even for things like bills, or talking to the electric company, or things as simple as that. They’re used to dealing with such huge amounts of money, that even though a float center is not a cheap thing to run, it takes a good amount of funds to keep it going … in the scope of this much broader business world, we’re still itty bitty businesses. We are tiny, brick-and-mortar shops. And so, if you need to delay even something like 10,000 dollars up to a couple months out, you might be shocked just calling the company that you owe that money to and having a conversation … might just yield that time extension.
Ashkahn: Or especially if you need this money because you need to do some sort of construction fix. You can usually negotiate … they call them net-terms, like net-30’s or net-60’s, and that’s just the amount of days after something is done that you need to actually pay the bill. So you could have someone do a plumbing project for you and it’d be two months before you actually have to pay them for it.
Graham: Yeah, and so in the past when we’ve had to do emergency repairs on our walls or our floors or something like that, we’ve done a combination of that. Find the contractors that you can do the net-terms with, or the materials providers, push that out as far as you can. Take a little money from a line of credit, run a sale, and kind of all those things combined ends up being more of the solution that we’ve implemented.
Ashkahn: Yeah. Or you … I’ve also heard crippling credit card debt can be a useful thing for people.
Graham: And I do know float centers who have used credit cards to get past very similar experiences. That one of course is just terrifying because the interest rates get so high if you wait a little too long to pay them back.
Ashkahn: So then you just pay it off with another credit card. That’s the key.
Graham: And if you do it right, you can just get non-stop rewards during the process, so … sort of like, you can’t see, but I’m drawing a triangular-shape thing.
If you sell credit cards to other people, and then they start using them, you get a bonus for every charge that they do.
Ashkahn: Yeah, you should really get into some financial business.
Graham: So there are some ideas. What else? Child slavery?
Ashkahn: Yeah, those are the real ones.
Graham: Yeah, for sure. There’s only so much you can do to really generate that money in the short term.
Ashkahn: Maybe asking your friends and family for a loan is the next option?
Graham: Yeah, I just really, I don’t even … I didn’t even want to say that one.
Ashkahn: Uh, yeah …
Graham: Yeah … I was going to make a joke about going to your rich uncle or something, and I was like, “Eh, that’s not even good as a joke.” Because it’s so … then if you can’t pay your uncle back it’s awful …
Ashkahn: It’s just …
Graham: You’re going into-
Ashkahn: You pay him with a credit card, you know?
Graham: Pay off your uncle with a credit card.
Alright, anything else to add over there?
Ashkahn: I think that’s probably it.
Graham: Alright, good luck.
Ashkahn: Yep.
Graham: Good luck out there. Hope you raise some quick funds.
Ashkahn: Yeah.
Graham: And if you have any more emergency questions, definitely go to a professional.
Ashkahn: Don’t send them into the podcast.
Graham: If you have more slow-paced questions yeah, go to floattanksolutions.com/podcast and shoot them off there.
Recent Podcast Episodes
How to Help Float Research – DSP 300
With the push from Justin Feinstein at LIBR to get more float centers involved in research, many float center owners are chomping at the bit to push studies forward on the benefits of floating. But where do you start and how do you make it happen?
Graham and Ashkahn discuss this idea and how to do research right, as well as some of the things that might be helpful OR harmful to the world of floating in the eyes of the scientific community. There’s a lot of nuanced things to know about proper research and if you go in overzealous without considering how established science is done, it can harm the reputation of the practice.
Tips on Running Power to Float Rooms – DSP 299
Graham and Ashkahn offer some helpful tips to keep in mind when planning out the electrical framework for your float rooms. How many circuits you should plan for, where to place outlets, GFCI compliance, just to name a few.
Definitely an essential episode for anyone to listen to before going into their build-out phase.
Floating in National Media – DSP 298
Seeing float tanks in the national news and culture has increased in regularity within the last few years. Graham and Ashkahn discuss how these things get on such a large platform. The guys briefly go over some of the major stories that have been all over the media and how those stories happened. Mostly it comes down to luck, but there are a few things that can increases the chances of your float center getting on national TV.
The Real Tips on Building Your Own Float Tank – DSP 297
Someone wrote in and asked, again, despite the repeated warnings of the previous episode covering this topic, how to build a float tank properly.
Graham and Ashkahn try their best to restrain themselves and offer some practical advice about how to build your own tanks while also repeatedly warning about things to look out for when going forward with the process.
How to Handle Other Float Centers Spying on You – DSP 296
Graham and Ashkahn talk about how they deal with other float centers spying on Float On.
Basically… they don’t. The float industry is a really open community and a lot of information is generally freely available. If someone is spying on a float center, that could be a result of poor communication skills or a lack of awareness of what information is actually out there. The guys share their advice on how to talk to someone who might be in that situation and how to move forward, hopefully as friends instead of rivals.
Latest Blog Posts
Reflections from the Rise Float Gathering
Over this past weekend, a good chunk of the Float Tank Solutions and Float Conference crew ventured to St. Louis, MO for the first ever Rise Community Float Gathering. Beyond our excitement to see old friends and meet new ones, we were thrilled to be able to attend a float event that we didn’t have to plan.
When it comes to float tanks, we often deal with a lot of the “what” and the “how” of things – what do I need to do to open a float center and how to I make everything work? We write blogs and put out content. We spend our days thinking about conference flowcharts, water chemistry, detailed business plans, soundproof insulation, etc.
Rise, on the other hand, focused on the “why?”
The Story Behind the Float Marketing Forum
Over the past few years, primarily through feedback received from conference attendees and through industry survey responses, float center owners struggled with and wanted a solution to one thing… marketing. It makes sense – if there’s one thing every center needs (besides salt), it’s a solid flow of customers in tanks.
After some brainstorming with Ashkahn, we’ve decided the best solution for this year was to host a series panels covering key marketing topics that will provide the biggest impact in growing your float center business.
Introducing: The Float Conference Marketing Forum.
Announcing the 2nd Ever Start-a-Center Giveaway WINNER!
In what was one of the most difficult decisions that we had to make as a team… and after sorting through nearly 200 entries… we’ve decided upon a winner in our second ever Start-a-Center Giveaway.
Read more to learn who we’ll be guiding through the process in starting a float tank center in their community.
Gut your space before construction!
One line we don’t think you should cross is this: as much as possible, when building out your float center, gut it completely. Start from scratch.
At least then the mistakes you make are your own and your building will hold fewer surprises down the line. There are many benefits that you may not think of immediately. In this post, we’ll guide you through some of them.
