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Building a Successful Pool and Spa Business

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Building a Successful Pool and Spa Business

Building a thriving business from scratch is just but the second most difficult task for some pool and spa business owners. The hardest task of all is successfully handing it over as you head for retirement. It’s a scary task, especially after sacrificing a lot and caring for it. It is without a doubt you’d like it to survive and continue growing.

Building a Successful Pool and Spa Business

There are many similarities between a family business and a child. A family business is like the birth of a child and its guidance to maturity. It is always a secret wish for every owner of a pool and spa business that one of their children will take over the business. This is to give the parent-owner a smooth, beneficial transition into retirement.

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Most parent-owners have had this dream despite the various challenges like family conflicts, non-interested or even unable children.

Currently, a third-generation family-owned pool and spa business, Jet line Products, is one firm that has managed to undergo a successful transition. The results have been satisfying results for both generations. The retiring generation made away with good proceeds from their years of hard work. On the other hand, the new generation maintained important positions in a new era.

Warren Feder, an associate at Carl Marks Advisors, an investment bank that guides middle market companies, led the team on this successful sale. From his experience in facilitating sales of family owned businesses, he has valuable advice for family owners interested in a successful transition while maintaining family bonds and still enjoy the fruits of their efforts.

Family dimensions can complicate the operations of a family business. Based on statistics, most family business hardly makes it to the third generation and if they do they very few go beyond that. It is an uphill task to work through a family’s challenges and the challenges of a business both combined.

Many family business owners headed for retirement believe the best solution is to sell the business. The business should also operate separately from the family, even though this may not be their first instinct.

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Jet Line is a pool equipment distributor established in 1971 by the Epstein family. By early last year, it was in its third generation of ownership.

There were different family groups with varying objectives. For the second generation, several siblings wanted to exit and cash out. On the other hand, for the third generation, three of them, Andy, Josh, and Brett Epstein, were seeking different opportunities the business could present. They wanted to grow the firm.

To reach an amicable solution, they held meetings and tried to keep the issue as confidential as possible. However, word leaked, and to their surprise, POOLCORP, their biggest competitor, reached out in response to the rumors.

After much persistence, POOLCORP eventually got to have a meeting with Jet Line. The meeting turned out to be a turning point for both companies. The meeting ended in a deal, and the company was finally closed at the end of September. The deal was satisfactory for both parties where Andy and Josh Epstein joined the new company holding senior positions, and the second generation siblings cashed out from the sale proceeds.

Helpful advice on a successful sale

From the successful Jet Line sale, Feder highlights some vital lessons to facilitate the sale of a pool and spa business, specifically a family business. The first point is to limit the players involved. One member is the most preferable. If you involve equal players with an equal say, it will make it difficult to get to a deal.

Secondly, get good advisors and allow them to do their work. Let’s face it; very few family business owners know how to sell their companies. You may need market experts and people who know how to structure deals.

The third element is the firm’s record keeping, and financial system as the buyer needs proof of its profits and revenue. Purchasers can send in their accountants to validate your figures. If you have good figures, it makes it easier to strike a deal; however, it makes the process a bit challenging if you have bad figures.

One of the biggest challenges in a pool and spa business sale is that expertise and experience lie with the management looking to cash out and leave the business. This makes it hard for the buyer to grow the business successfully. At this point, procedures, systems, organization, and having experienced people for management come in as an advantage. You need to know how the business will run after your exit unless you sell to an experienced buyer. In some cases, the owner can stay for a 2-3 year period to oversee a successful transition.

Covid Symptoms; Business Weariness

Covid has altered everything just like in every area of finance and economy, in business sales and acquisition. Feder reflects on 2020 events as increasing the pace of activity.

Many older people suffered from Covid, which may be a huge turning point in the pool and spa business industry. Even though a number of people escaped this harrowing experience alive, several people opt for their health and lives compared to business. As a result, according to Feder, it is an expectation that more families will be open to selling their businesses earlier and stay to facilitate a successful pool and spa business transition to avoid health risks when aged.

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Pool News coverage brought to you by Pool Magazine's own Marcus Packer. Marcus Packer is a 20 year pool industry veteran pool builder and pool service technician. In addition to being a swimming pool professional, Marcus has been a writer and long time contributor for Newsweek Magazine's home improvement section and more recently for Florida Travel + Life. Have a story idea or tip you'd like to share with Pool Magazine? Email mpacker@poolmagazine.com your story idea.

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Tesla Pool – Automaker Adds Swimming Pool To Charger Station

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Tesla Swimming Pool

One of the primary reasons consumers opt to purchase a Tesla is the robust availability of convenient charging stations. Recently, the automaker has experimented with adding amenities to its charging stations. New cube lounges at a Supercharger station in Germany come equipped with automated coffee, food, and more. Tesla is also adding other options and fun activities for drivers to enjoy while they wait for their vehicles to charge. The newest amenity they’re currently experimenting with is an above ground swimming pool.

A clip of the pool being installed prior to launch was shared with news sources.

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The swimming pool can be used by up to 4 people at a time for 10 minutes, giving folks just enough time to change into their swim suits and enjoy a quick dip while their vehicle charges. There are even Tesla-branded beach balls to play with while they’re swimming in the shipping container style above ground pool.

This promotional popup will open at the Tesla charging station in Hilden, Germany; which incidentally is one of the largest in the country with 40 chargers and 8 superchargers. The pool will be open from Thursday until Sunday. Tesla owners can drop in for a swim from 2:00 p.m. until 7:00 p.m.

What do you think about this idea? Is this something you’d like to see in the United States? Sound off in the comments and let us know.

3/5 - (2 votes)

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Pool Rental App Swimply Is The New Side Hustle For Homeowners

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Pool Rental App Swimply Is The New Side Hustle For Homeowners

Pool rental marketplace Swimply has created the ultimate side hustle for homeowners. Spending upwards of $100,000 to create the ultimate luxury outdoor living area is an investment some are willing to make. This is especially true if one can be confident they will recoup that investment quickly. Renting the pool to friends and neighbors is one smart way to do just that.

The Pool Rental Concept

Pool rentals are sweeping the nation and the innovative online marketplace Swimply is leading the charge. Described as “Airbnb of swimming pools,” Swimply debuted last year. According to the firm, there are over 20,000 swimming pools in all 50 states, as well as in Canada and Australia.

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After recently raising $40M in funding from AirBnB and Lime co-founders last year, Swimply is poised for tremendous growth moving into 2023. The service has been rapidly gaining traction with consumers who are attracted by the ability to rent a swimming pool by the hour.

Renting a pool by the hour may can be very profitable. Swimply has created the marketplace for renting a pool.
Renting a pool by the hour may can be very profitable. Swimply has created the marketplace for renting a pool.

Swimply’s Business Model is Unique

In the sharing economy, Swimply, definitely deserves recognition for their offering. Providing a marketplace that allows buyers and sellers to connect and rent a pool is at the core of the company’s business plan. The model is simple, Swimply takes 15% of the booking fee from hosts and 10% from guests.

Swimply’s pool rental marketplace can be lucrative for hosts and may not be as weird as it sounds. As water recreational facilities were shut down by COVID in the last two years, Swimply has emerged to fill the vacuum. Consequently, the company has grown exponentially.

We spoke with Swimply Co-Founder and COO Asher Weinberger last year about the revolutionary new technology which is connecting homeowners with an open marketplace of consumers looking to rent a backyard for a few hours.

Listen to our conversation on the Pool Magazine podcast:

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Pool Rental Marketplace Grew 5,000% During Covid

After a soft launch back in 2019, Weinberger quickly realized that the public was elated with their offering. “There was a tremendous amount of interest and at the time we could only meet 10 to 15% of the demand,” said Weinberger. “That helped set the stage for us because we learned a lot about what people wanted and how they were using the platform.”

“We caught huge tailwinds in light of Covid and grew roughly 5,000% year over year,” said Weinberger. Since then, Swimply’s marketplace has exploded with consumers searching for a safe recreational experience with friends and loved ones in an open outdoor setting. This has been true both on the guest side and the host side.

Homeowners Look To Monetize Their Pool

It appears that word has definitely begun to spread that renting your pool is a sweet new side hustle. One man in particular recently made the news after he reportedly netted $177,000 just by renting out his pool and backyard.

Jim Battan of West Linn, Oregon, told news sources, “I love to say that the pool has paid for itself and more. I built a man cave last year, and also credit that to my Swimply pool.”

Swimply As a Side Hustle

Being a Swimply host isn’t for everyone, according to Battan. The side hustle does require a fair amount of work on the part of the host. Maintaining the pool between guests involves much more than simply setting out fresh towels. His 26-foot by 18-foot pool and its accompanying pool house has cost him roughly $37,000 in maintenance over the last decade. On a typical week, Battan estimates that he and his wife Lisa spend approximately 12 to 14 hours cleaning and testing the water’s chemicals as well as managing all of their bookings.

“I love the income, but I generally caution people from it,” Battan told reporters. “Unless you’re retired or don’t have a day job, it takes a lot of time to learn about pool chemistry and management. It’s not good enough to just rely on a once-a-week service to come out look at your stuff. I look at my pool chemicals probably five to 10 times a day.”

Renting Your Pool By The Hour Can Be Profitable

It’s also important to note that Battan’s pool represents the best-case scenario. Currently, he’s Swimply’s top earner out of 25,000 pools in the U.S., Canada, and Australia. The average host earnings are between $10,000 to $20,000 per year.

Ned Gilardino is another top earner from Aurora, Colorado who is cashing in on the lucrative side hustle. Last year he rented his pool out roughly 500 times clearing close to $50,000 in the process.

“Not only has the extra money paid for the cost of maintaining the pool,” Gilardino told news sources, “it has actually brought in an entire new revenue stream for my family.”

Pool rentals vary by price and can be filtered to meet price, features, and amenities. - Photo Credit: Swimply
Pool rentals vary by price and can be filtered to meet price, features, and amenities. – Photo Credits: Swimply

Homeowners who are looking for MSI’s (multiple sources of income) can certainly put Swimply on their list of resources. Typically most swimming pools on the platform rent between $15 and $75 an hour. However, there appears to be no limit on how much hosts can earn. We’ve seen some pools in premium areas such as Beverly Hills rent for as much as $200 an hour. Those with luxury amenities in their backyard obviously can charge towards the higher end of the spectrum.

Guests can search for an ideal backyard in their price range to throw a pool party and even filter their search to show properties that have specific amenities. Finding a backyard with a fire pit, or an outdoor grilling area, or one that allows pets, is easy. Swimply made it simple to narrow down selections with the ideal features consumers are looking for.

The interface is simple and intuitive to use on both ends. Swimply also made it super easy for homeowners to track their reservations, communicate with guests and quickly get their pool rental up in their easy-to-use marketplace.

Swimply’s Contribution To The Shared Economy

Given that public pools are closing at an alarming rate, Swimply has also started filling a gap in underserved communities, much the way Uber and other sharing economy platforms have.

While the shared economy is a young concept itself; Swimply’s arrival simply ushers something we will undoubtedly see even more of in years to come. Though unexpected and a newcomer; one thing is certain, homeowners and consumers have embraced the concept of renting a pool by the hour.

4.6/5 - (17 votes)

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Sinkhole in Swimming Pool Kills Man, Swallows Guests

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Sinkhole in Swimming Pool Kills Man, Swallows Guests

A man was found dead after being swallowed by a sinkhole that opened up in a private swimming pool. The incident transpired in Israel where authorities are still trying to figure out what caused two men to be swept away by the receding water after a sinkhole sprang up within an inground swimming pool at a private property in central Israel. One was recovered dead at the scene on Thursday afternoon.

The body was located by search crews in the town of Karmei Yosef after a four-hour recovery operation conducted by rescue personnel who were lowered deep underground. The search was hampered by concerns that tunnels extending from the sinkhole could lead to a second collapse.

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It took rescuers several hours of searching before they were able to uncover the body of the man who had gone missing. The other 34-year-old man who had been trapped for some time, was saved and treated for minor injuries to his lower body.

Rescuers worked for hours to find the missing victims body. - Photo Credits: Fire and Rescue Services
Rescuers worked for hours to find the missing victims body. – Photo Credits: Fire and Rescue Services

Employees of a private company were having a pool party when the incident occurred. About 50 people were present at the time of the accident, according to one guest.

“The water level suddenly started receding and a hole opened up, creating a vortex that swept two people inside,” the guest told news sources.

She said a sinkhole opened a vortex formed which swallowed up the victim in a matter of seconds. She yelled at her coworkers to get out of the pool as the sinkhole emerged, but they initially assumed it was a game. Authorities say, fortunately, there were only 6 people in the pool at the time or injuries and casualties could have been far greater.

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“Seconds later, the ground just dropped… I watched two people just disappear,” she added.

According to police, an investigtion into the incident is currently underway, and they plan to find out if the pool was operating with the proper license.

4/5 - (8 votes)

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