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.
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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
Is it Bad for Float Centers to Always be Running Discounts? – DSP 195
Welcome to the last episode in Social Media Week with Derek, Ashkahn, and Graham. If you haven’t listened to the other episodes in the series, it is strongly recommended that you start at the beginning especially for this episode as it references some points brought up earlier in the week.
Derek and Graham share some more intricacies of the Float On business philosophy and share their opinions on constantly running ads for floats through Groupon or on Social Media. Admittedly, Float On doesn’t run discounts very often, and they share why that is. They also talk about how to run discounts effectively and have a tough conversation about what to do if you want to break that cycle of constant discounts for your floats.
What’s a Reasonable Amount to Spend on Facebook Ads? – DSP 194
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After talking so much about the fundamentals of social media and its impact on float center marketing, we’re finally able to answer some of the more complex questions that float centers ask. If you haven’t listened to the rest of the Social Media posts from this week, it is strongly recommended you check those out first.
In this episode, Derek provides practical advice for how much to spend on ads for your center, and while each location is going to be different, there are some tried and true tips to follow to help each center find their ideal advertising system.
Choosing Facebook Ad Options for Float Centers – DSP 193
Today on Social Media week, Derek educates Ashkahn and Graham on what exactly it’s like placing an ad on Facebook.
Facebook, as well as other social media sites, provide a cornucopia of options for targeting your ad based on employment, interests, age range, and lots of others. For float centers, this can become fairly confusing, especially since floating doesn’t have demographics in the traditional sense.
Derek clears things up and explains to Graham, Ashkahn, and the rest of the float community, exactly why these options exist and what might work for a specific center.
What the Hell is Facebook Pixel? – DSP 192
Welcome back to Social Media Week!
A Pixel is a tool used when creating an ad account that allows you to create target audiences for your ads. How you use it and what to use it on are more complicated answers though.
Fortunately, Graham and Ashkahn have Derek to use as a resource and they have him break down how best to utilize target audiences and how to get the best bang for your buck.
Can you Cross Post to Different Social Media Platforms? – DSP 191
Today on Social Media Week, Ashkahn and Graham pick Derek’s brain about how to get content for several different social media platforms.
Derek shares his tips for how best to broaden your reach with your social media and not fatigue your audience with the same content on multiple platforms. He also shares what type of content works well on different platforms.
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