Will The Sharks Sink or Swim With Urban Float? | Shark Tank US | Shark Tank Global

Summary

In this Shark Tank pitch, Scott Swiland and Joe Bodri present their business, Urban Float, which offers a unique floating experience designed to relieve stress and improve mental clarity. Seeking $500,000 for 5% equity, they explain the benefits of floating in specially designed tanks filled with Epsom salt water. Despite initial interest, sharks express concerns about the company's debt and profitability. Ultimately, a negotiation ensues, leading to a deal where the entrepreneurs agree to give up 12.2% equity in exchange for the investment, highlighting the potential for scaling their innovative concept.

Takeaways

• 😀 Urban Float seeks $500,000 for 5% equity in their floatation therapy business.
• 🧘‍♂️ Floating is presented as a form of weightless hydrotherapy that reduces stress and enhances recovery.
• 💧 Each float pod contains 200 gallons of water buoyed by 1,200 pounds of Epsom salt, promoting relaxation.
• 📈 Urban Float has achieved significant success with four corporate locations and plans for franchising.
• 💵 The initial investment to open a new location is estimated between $500,000 to $600,000.
• 📊 The business model includes a single float session for $45 and unlimited memberships for $150 per month.
• 🚀 Urban Float aims to reach $25 million in revenue with projected cash flow of $600,000.
• 🛑 Some investors express concerns about the company's $1 million debt and the sustainability of the retail strategy.
• 🤝 Matt Higgins offers to invest $500,000 for 15% equity, highlighting his ability to help scale the business.
• 🎉 The final deal is agreed at 12.2% equity, marking a successful negotiation for the founders.

Q & A

What is the business model of Urban Float?

Urban Float offers floatation therapy services through high-end float spas, where customers can experience weightless hydrotherapy in sensory-controlled pods. They provide single float sessions and membership options, with prices ranging from $45 for a one-time session to $150 per month for unlimited floating.

How does the floating experience work at Urban Float?

The float experience involves stepping into a sensory-controlled pod filled with 200 gallons of water made buoyant by 1200 pounds of Epsom salt. Customers float weightlessly, promoting relaxation, focus, faster recovery, and reduced pain. The water is filtered and sanitized multiple times to ensure cleanliness.

How much money is Urban Float seeking and for what percentage of the company?

Urban Float is seeking $500,000 for a 5% stake in the company.

What is the cost to open an Urban Float location?

It costs between $500,000 and $600,000 to open an Urban Float location, which includes six float beds and the required equipment.

How many float beds are typically in each Urban Float location?

Each Urban Float location typically has six float beds.

What are the membership options at Urban Float?

Urban Float offers memberships that allow unlimited floating for $150 per month, encouraging customers to float regularly for maximum benefits.

How did Urban Float fund its initial growth?

Urban Float initially raised $300,000 through friends and family and later reinvested a million dollars of profits to open additional stores.

What is the main competitive advantage of Urban Float's floating pods?

The floating pods at Urban Float are designed to be visually appealing and modern, with customization options such as music and lighting. Additionally, the company offers a high-end spa-like environment, which sets them apart from older, less attractive float tanks.

What is the estimated annual revenue and profit target for Urban Float?

Urban Float projects a revenue of $25 million annually, with a profit target of $5 million before taxes.

What are the concerns raised by the investors about Urban Float?

Some investors are concerned about the $1 million debt, the lack of proprietary technology or innovation, and the sustainability of the retail strategy. Additionally, some are skeptical about the business's scalability and profitability, despite the promising concept.