The float tank business is a business that makes available float tanks for people to use. The tank makes use of saltwater (a solution of water and Epsom salts) which makes it extremely buoyant and thus easy to float on. The water in a flotation tank is about 12 inches deep and contains hundreds of pounds of Epsom salts that increase the density and buoyancy of the water.
The float tank business is a subset of the health and wellness industry and the industry includes a variety of health and wellness facilities such as day spas, spa resorts, hotel spas, and medical spas. The majority of the services industry operators offer are discretionary.
As a result, industry performance is tied to fluctuations in consumer disposable income and confidence. Demand for industry services has grown amid favorable economic conditions. As per capita disposable income continues to rise, industry revenue is expected to grow at an annualized rate of 2.1 percent to $19.8 billion over the five years to 2020, including 2.0 percent growth in 2020.
Steps to Start a Float Tank Business in 2023
Table of Content
1. Conduct Market Research
The first step in carrying out market research for your float tank business is to develop market-based research questions in line with your overall business goal and objective. In this regard, you should source information that will help you maximize your business.
a. Who is the Target Market for Float Tank Business?
If you are thinking of opening a float tank business then you should make target demographics all-encompassing especially clients who have residue income to spend on leisure. Those who pay hundreds of dollars for regular spa services will think little of paying for a new experience that can help them relax and unwind.
It should include corporate executives, socialites, entrepreneurs, celebrities, military men and women, sportsmen and women, tourists, and every adult in the neighborhood where your float tank business will be located.
b. Is Float Tank Business a Profitable Business?
Yes, the float tank business is profitable and statistics show that on average, a float tank business with two tanks should net more than $100,000 a year assuming you have a steady clientele. Considering tanks only cost $2,400 a year to maintain after the initial purchase, you will start turning a profit (minus the costs of the space) in less than two years.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to floating tank business and this is so because float tank business is a subset of the health and wellness spas industry.
d. Who are the Major Competitors?
- Just Float (The World’s Largest Float Therapy Center)
- True REST Float Tank
- Urban Float
- The Premier Float Tank
- Float Culture
- Beyond Rest – Float Tank
- City Cave Float Tank
- Fort Worth Float Company
- Superior Float Tanks™
- Hope Floats USA
- Space-Time Tanks Floatation Center
- Wonder Float Center
- Flotation Therapy, (a Float Center for Boston)
- Float Toronto
- Zee Float
- Isolation Tank
- The Float Pod®
- Uptown Float
- Float Seattle
e. Are There County or State Regulations or Zoning Laws for Float Tank Business?
No, there are no county or state regulations or zoning laws for float tank business, but players in this industry are expected to work with the existing regulations governing similar businesses in the county where their business is domiciled.
f. Is There a Franchise for Float Tank Business?
Yes, there are franchise opportunities for float tank businesses, and here are some of them;
- True REST Franchising
- Urban Float Franchise
- The Premier Float Tank Franchise Brand
- Float Culture Franchise
- Beyond Rest – Float Tank Franchise
- City Cave Franchise
g. What Do You Need to Start a Float tank business?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- A Good facility
- Certificate of Occupancy (CO).
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
- Commercial-Grade Float Tanks and Tank Maintenance tools and Supplies
- Startup Capital
Memorable Name ideas for Float Tank Business
- The Arena© Float Tanks & Spas, Inc.
- Free Low® Float Tanks & Spas, LLC
- Sail© Float Tanks & Spas, Inc.
- Spa Solutions® Float Tanks & Spas, Inc.
- The Dome™ Float Tanks & Spas, Inc.
- Cally Nexus™ Float Tanks & Spas, LLC.
- D Zone© Float Tanks & Spas, LLC
- Danny Blank® Float Tanks & Spas, Inc.
- Star Net© Float Tanks & Spas, Inc.
- Friends Zone© Float Tanks & Spas, Inc.
- Sandy Webb® Float Tanks & Spas, LLC
- Coast Line® Float Tanks & Spas, LLC
- Free World™ Float Tanks & Spas, LLC
- Thomas Gusto© Float Tanks & Spas, Inc.
- Sun’s Place® Float Tanks & Spas, Inc.
- Santos Marcos™ Float Tanks & Spas, Inc.
- Jupiter™ Float Tanks & Spas, Inc.
- Connor Zels© Float Tanks & Spas, Inc.
- Silver Ocean® Float Tanks & Spas, LLC
- Floating Hills™ Float Tanks & Spas, Inc.
Register Your Business
a. What Type of Business Structure is Best for Float Tank business?
Even though there are several options such as sole proprietorship, partnership, limited liability company (LLC), and corporation, when it comes to the business structure for a float tank business, the one that most players consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.
Please note that an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Float Tank Business?
- General Business License
- Health and Safety Permit
- Zonal Permits
- Signage Permit
- Operational State Facility Inspections
d. What Type of Certification is Needed to Open a Float Tank Business?
You don’t need any certifications to open a float tank business.
e. What Documents are Needed to Open a Float Tank Business?
These are some of the basic legal documents that you are expected to have in place if you want to legally run a float tank business in the United States of America;
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Certificate of Occupancy (CO).
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a float tank business, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Float Tank Business?
There are factors that can influence the cost of starting this business such as soundproofing, waterproofing, HVAC systems, commercial-grade float tanks, marketing, staffing, fixtures, supplies, and choice of location and facility. But basically, a float tank business will cost from $200,000 – $600,000 to open and that can easily go higher depending on your overall business goals and objectives.
b. What are the Cost Involved in Starting a Float Tank Business
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,200.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $80.
- The cost for hiring a business consultant (writing of business plans inclusive) – $4,500.
- Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – $12,400.
- The cost of accounting software, CRM software, and Payroll Software – $1,500
- The cost for leasing a facility (long-term lease agreement) – $135,600.
- The cost for facility remodeling and installations – $100,000.
- The cost for the purchase of commercial-grade float tanks: $80,000
- Other start-up expenses including stationery – $500
- Phone and utility deposits will cost – ($2,500)
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $50,000
- The cost of store equipment (cash register, security, ventilation, signage) – $3,150
- The cost of purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $8,000.
- The cost of launching an official website – $600
- Miscellaneous – $2,500
c. What Factors Determine the Cost of Opening a Float Tank Business?
- The size of float tank business (number of commercial-grade float tanks to start the business with)
- The choice of location
- The required licenses and permits
- The type of facility
- The additional spa related service offerings
- The cost of hiring and paying a business consultant and attorney
- The cost for branding, promotion, and marketing of the float tank business
- The cost for furnishing and equipping the business
- The cost for insurance policy covers
- The cost for registering the business
- Source of your supplies and ongoing expenses
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
- The cost for the grand opening of the float tank business
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
It is not compulsory to build a new facility for your float tank business, but if you have the required finance, it will pay you to build your facility. The truth is that building or reconstructing a facility will help you come up with a facility that will perfectly fit into your overall business goal.
e. What are the Ongoing Expenses of a Float Tank Business?
- Supplies (inventory expenses)
- Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
- Salaries of employees
- Tank maintenance
- Marketing costs
f. What is the Average Salary of your Staff?
- Chief Executive Officer (Owner) – $45,000 Per Year
- Float Tank Spa Coordinator – $36,500 Per Year
- Massage Therapist – $36,000 Per Year
- Guest Service Agent – (FT) – $35,000 Per Year
- Loyalty Concierge – $34,000 Per Year
- Customer Service Officer (Receptionist) – $26,100 Per Year
- Security Guard -$24,000 Per Year
g. How Do You Get Funding to Start a Float Tank Business
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from, government, donor organizations, and angel investors
- Source soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Our float tank is an award-winning health and wellbeing center that will be located in a fast-growing community in San Jose, California. We have been able to secure a ten-year lease within the city’s largest center. We have an option of renewal of 20 years at a rate that is favorable to us. Our customers are going to be treated with good music and ambiance at all times. We have made provision for other spa service offerings that will delight our customers.
b. Products and Service
- Floatation Therapy
- Massage Therapy
- Yoga Classes
- Infrared Sauna
- Sale of health and wellness products
c. Mission Statement
Our mission is to establish a float tank business that will make available soundproof, salt-proof, and waterproof facilities et al in the United States.
Our vision is to establish a standard float tank business in San Jose, California that will be the leader in the float tanks cum health and wellness spas industry in the United States of America.
d. Goals and Objectives
The goal and objective of the float tank business are to provide a facility and float tank for people to relax and relieve stress.
e. Organizational Structure
- Chief Executive Officer (Owner)
- Float Tank Spa Coordinator
- Massage Therapist
- Guest Service Agent – (FT)
- Loyalty Concierge
- Customer Service Officer (Receptionist)
- Security Guard
a. SWOT Analysis
- The owner is an expert in massage therapy and floatation therapy
- Existing massage clientele
- Pro-active marketing plan in place
- The emerging float industry is growing exponentially
- Combining 2 successful growing industries – floatation and massage therapy
- The owner uses business educational resources such as classes, webinars, and mentors to Improve business practices
- The owner is customer-oriented
- The owner has the support and guidance of existing float centers in town.
- Not enough clientele to run at full capacity immediately
- The owner is new to the float industry
- The owner is new to large scale marketing
- We will need a loan to build our facility
- The owner is currently running the business solo
- It will take at least 1 year to gain the experience to run the center optimally.
- Increasing industry awareness.
- Shift in public perception toward floating as preventive health care.
- Profits are high for floats, the average spent on materials per float is about $5, COGS 7 percent
- Profit average for massage therapy: COGS 45 percent
- Profits high for insurance-related massage therapy: COGS 18 percent
- Product sales increase revenue
- Provide an exceptional experience that is not found elsewhere.
- Industry growth could drop off to an unforeseen shift in the public interest
- Loans diminish profitability until they are paid off
- First-year will be financially tight while we gain customers and pay off loans
- Competition in the area could increase
- Management of employees requires time, money, and efforts
- The county’s health department could change its regulatory status and decide to regulate float tanks.
b. How Do Float tank businesses Make Money?
Float tank businesses make money by charging clients based on the amount of time they are in the tank, or they may charge a monthly fee for a certain amount of sessions or even unlimited use. Spa services can also be sold as a package if you offer other services that will complement a floatation tank session.
c. Payment Options
- Payment via bank transfer
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
d. Sales & Advertising Strategies
- Introduce your float tank business by sending introductory letters alongside your brochure to corporate organizations, households, sports organizations, gyms, socialites, celebrities, and other key stakeholders in the city where your float tank business is located.
- Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
- Create a basic website for your business to give your business an online presence
- Directly market your services and products.
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities, and train stations et al.
- Use friends and family to spread the word about your float tank business
- Post information about your float tank business on bulletin boards in places like tattoo salons, schools, libraries, and local coffee shops.
- Place a classified advertisement in the newspaper, or local publication about your business
- Advertise your float tank business in relevant spa and beauty magazines, newspapers, TV, and radio stations.
- List your business on yellow pages ads (local directories)
a. How Much Should You Charge for your Service?
Generally, most float tank businesses charge over a dollar a minute, generally in increments of 30-, 60-, or 90-minutes sessions. Intro sessions may be given at a far reduced rate, such as $100 for two 60-minute sessions.
b. How Much Profit Do Float Tank Business Owners Make a Year?
It depends, but available reports show that on average, a store with two tanks should net more than $100,000 a year assuming steady clientele. Considering tanks only cost $2,400 a year to maintain after the initial purchase, you will start making a profit (minus the costs of the space) in less than two years.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the float tank business
- The types of related spa service offerings
- The location the float tank business is covering
- The management style of the float tank business
- The business approach of the float tank business
- The advertising and marketing strategies adopted by the float tank business.
- The number of years the float tank business is in operation
d. What is the Profit Margin of a Float Tank Business?
The profit margin of a float tank business is not fixed. It could range from 55 percent to 85 percent depending on the duration of the floating session.
e. What is the Sales Forecast?
Below is the sales forecast for a Float tank business it is based on the location of the business and other factors as it relates to such startups in the United States;
First Fiscal Year: $320,000
Second Fiscal Year: $580,000
Third Fiscal Year: $1.15 million
Set Up your Office
a. How Do You Choose a Perfect Location for Float tank business?
- The demography of the location especially as it relates to people that spend on leisure services
- The demand for floating and spa services in the location
- The purchasing power of businesses and residents of the location
- Accessibility of the location
- The number of float tank businesses, and spa centers in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Float tank business?
- Dubuque, Iowa
- Buffalo New York
- Denver, Colorado
- Rock Hill, MO
- Greenville, South Carolina
- Los Angeles, California
- Brattleboro, Vermont
- Palm Beach, Florida
- Silver Spring, Maryland
- Rowland Heights, California
- Green Bay, Wisconsin
- Dallas, Texas
c. What Equipment is Needed to Operate a Float Tank Business?
You should be prepared to purchase commercial-grade float tanks, float tank maintenance tools and accessories, receipt issuing machines, Sound systems (For playing music), Point of Sale Machines (POS Machines), CCTV Cameras, and Flat Screen TVs. You will also need computers ad laptops, internet facility, telephone, and office furniture, and all these can be gotten as fairly used.
When it comes to hiring employees for a standard float tank business, you should make plans to hire a competent chief executive officer (owner), float tank spa coordinator, massage therapist, guest service agent, loyalty concierge, customer service officer (receptionist), and security guard.
Launch the Business Proper
No float tank business opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can choose to go for a grand opening party.
With proper launching of the float tank business, you will officially inform people that your float tank business is open.
a. What Makes a Float tank business Successful?
- Choose a good location and facility to launch the business
- Adding additional relaxation services can help turn your business into a full-service spa.
- Throw a grand party before officially opening the business
- Be deliberate with your marketing approach
- Encourage the use of word of mouth to promote your float tank business
- Leverage on all available online and offline platforms to promote your float tank business
b. What Happens During a Typical Day at a Float tank business?
- The facility is open for the day’s work
- Customer’s requests are taken and they are scheduled or attended to (they go through sessions in the float tanks)
- Tank maintenance
- Marketing/website upkeep
- Supply ordering
- Administrative duties
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Float tank business?
- Customer services skills
- Computer, internet, email experience (Mac preferred)
- Interpersonal skill
- Accounting and bookkeeping skills
- Business management skills
- Bargaining skill
- Work experience in a health and wellness spa environment
- Experience in managing people
- Experience in business administration
- Experience in handling spa and massage therapy and related services.