This post is kept for historical purposes, but our current knowledge of float center finances is best found in our Industry Reports.
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Float tank centers have a natural cap on their profits* – there are only so many floats you can run in a day. Even if you expand into all of your neighboring shops. Even if you’re open 24 hours a day, 7 days a week. Even if you raise your prices and start cutting expenses – there is a cap.
There are also several ways to overcome it.
- Expand your retail selection
- You can plan to open more float tank centers
- You can do as True Rest, Urban Float and Float House did and plan to franchise
- You become a tank manufacturer, like FloatWorks (i-sopod)
What all of these attempt to accomplish is filling in a basic gap in the model of running a single float tank center: there is no inherent form of passive income. There is no way to do the work once, and to have the amount of money you bring in grow consistently. You can even argue that opening more float centers on your own is just pushing back the problem, since eventually you will max out the profits of each individual center.
The above are far from the only ways to make a move towards passive income. Fortunately, most of these involve getting more deeply entrenched in the industry and finding ways to help propel it forward. The soundest business move you can make is to not stay wrapped up solely in your own endeavors, but to engage with industry, and the world, at large.
I want to end by proposing a final, simpler solution, that doesn’t fit into the group above.
Know at what point you’ll be content to stop growing, and stop.
It’s easy to get caught up in the world of things that are just out of reach. One of the most important things that we can ever hope to have is Enough.
*To be fair, everything has a theoretical cap on profits, but manufacturing and software products have caps so high that they will never have the chance to realize it.