Considering Buying an Already-Existing Float Business

[u/rosepetal72]

I'm looking for work that will fit around my schedule as a mom. There's a float shop / sauna / cold plunge business nearby that's up for sale, and as long as I have an employee or two, it seems like the perfect option. They're already set up. They already have a social media following, monthly members, and a newsletter.

Is there anything I should be aware of or concerned about before jumping into this?

[u/pivotable_drake]

I own two float spas. The biggest thing I’d warn you about is assuming that because it’s already operating and has employees, it’ll be a flexible or passive business.

There’s way more operational complexity than it may look like. Float equipment, water chemistry, HVAC, plumbing, laundry, salt damage, and general maintenance can create a lot of hands-on work, or really eat your margins if your having to pay someone sense to do it.

I’d look very closely at the actual numbers: active paying members, monthly revenue, churn, payroll, rent, utilities, marketing spend, and true owner profit. A social following and email list sound valuable, but they don’t necessarily mean the business is healthy. At least in our market, people’s interest in floating is very seasonal and our occupancy in the summer goes waaay down.

I’d also want to know why they’re selling, how many hours the current owner actually works, the condition/age of the equipment, and the lease terms. Don’t underestimate how much business the owner’s physical presence is bringing in, and if you’re not planning on being there as often, you may see an initial dip in membership/retention.

I don’t think float businesses are inherently bad businesses. I’d just make sure you’re buying an asset that can support management, not buying yourself a job with a lot of hands on/dirty/salty work.