A Build Out could include demolition costs and new construction costs. This can be a huge range and is completely dependent on size. Let’s assume $30 psf to $55 psf for overall construction (including framing, drywall, plumbing, electric, painting and finishes.). You can spend A LOT more, but it can be accomplished for this range.
A 4 Pod Center will need 1,500 to 2,200 sqft. Let’s assume 1,800 for this example. (Of course you can make it much smaller or much bigger)
BUILD OUT RANGE $54,000 to $99,000
There is a lot of choices for equipment. Commercial tanks tend to range in the $12,000 to $16,000 range and Pods will range from $25,000 for the Float Pod® up to $40,000 for other rooms. You will also need to budget for shipping and Epsom Salt. The Float Pod® uses about 1,000 lbs this will cost about $2,200 in Salt alone for four Pods.
FLOAT PODS/ ROOMS $65000 to $162,000
Don’t forget about the Architect and City. Depending on your architect and City you will need to budget as little as $5,000 to as much as $20,000. Huge range I know. Research and interview architects. I have a hard time believing a Float Spa should be designed for much more than $5,000 but each State is very different on the market norm.
ARCHITECT AND PERMITS: $5,000 to $8,000
Again, it’s easy to go crazy on this one. This can include, logo design, website, brochures, etc. The front of store neon signs can run from $4,000 to $8,000 and all the other stuff can run from a friend helping you to $20,000 or much much more. We will use a mid range estimate for our sample.
MARKETING COLLATERAL RANGE $6,000 to $15,000
This one will include fixtures, furniture, office computer and printer, etc.
OFFICE EQUIPMENT RANGE $6,000 to $12,000
Depending on your location many utility companies will require a fairly steep deposit as you are a “new business” and thus a risk. With phone and internet in particular you could be hit with up to $1,000 just in deposits. In Arizona we have NNN a part of our lease and this includes some utilities, but not electric.
UTILITIES START UP $1,000 to $2,500
I would budget no less than three months of total operating expenses into beginning cash flow. Most businesses recommend 3 to 6 months. Let’s assume $10,000 per month as a break even.
CASH FLOW ON HAND $30,000 to $60,000
Total start up cost estimates