Pro Float Inc | Funding Your Float Centre
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Funding Your Float Centre

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Funding Your Float Centre

Starting your own business can be expensive. Whether it’s a simple food cart or a sprawling new retail store, startup costs exist no matter what. This applies to almost every single industry out there — including the float industry.
Running your own float centre can be a highly rewarding business venture, but you have to spend money to make money. Depending on factors such as float tank types and retail space, a float centre can cost anywhere between $65,000 – $100,000 per room to fully set up. That doesn’t just sound like a lot of money, it is a lot of money. Many people who have the vision to build a float centre may not have an extra thousand lying around.
If you’re one of those people, don’t let the costs scare you away. There are always ways to make it work. That said, before you even start your float centre journey, you should know where your money to open one is coming from. There are a variety of ways to acquire the necessary funds to start your own float centre, and we’re going to run through a few of the biggest.

Funding Through Family and Friends

It’s safe to say you probably trust your family and friends more than a bank or the government. It makes sense. These are the people closest to you who understand the way your mind functions better than anyone else.
Family and friends are usually the first to hear about a great idea we have anyway, so why not ask them to be part of it as an investor? They know you’re going to handle their money properly and use it towards building the business. It’s unlikely your mom or dad will ask for a background check with your credit score — unless they happen to work in finance.
The tricky thing about working with family and friends is when success accumulates. They might feel like they’re owed extra when your float spa is full and people are lining up outside. This could translate into very complex issues over ownership rights and how much money they actually poured in to help you get started. As nice as it is to have family and friends on your side, having them along for your business journey can get complicated over time.

Get the Government Involved

If your float centre is making $10 million or more in gross revenue, you likely don’t need to read this next part. With that in mind, unless you’re a large float centre franchise, it’s quite probable that you’re a little under that mark to start.
Small businesses in Canada with gross revenues of $10 million or less are eligible for the Canada Small Business Financing Program (CSBFP). This program can help with things such as purchase or improvement of land or buildings, new or used equipment, and even registration fees.
The maximum loan amount you can get with the CSBFP is $1 million. It’s important to note, however, that only up to $350,000 can be used to finance the purchase or improvement of equipment and the purchase of leasehold improvements.

Consider Commercial Leasing

Just like leasing a car, there are similar opportunities to lease float tanks so you can start building your business with less financial burden. Not only are you able to spread the payments out, so it’s not one lump sum, but there are also tax benefits to consider as you can write those payments off as business expenses.

One of the other significant things leasing helps with is freeing up capital for leasehold improvements. Since you probably want to include other things in your float centre outside of a float tank, this can really come in handy with renovations or additions. Also, all additional costs on top of the tank itself such as shipping, installation, and additional materials can be included on one invoice.

Need more information about float centre startup costs? Check out some of our state-of-the-art float tanks and give us a shout to find out more.