What about your partner, how much to they intend to make, is that also coming out of the $500? What are you providing to your clients as far as their boarding fee goes? Feed (feeding), stall cleaning, shavings, blankets on/off, turnout etc. lessons? What are you expected to do at the barn regarding the stalls you lease and the arena use? Are you responsible for repairs? There are a lot of hidden costs that could pop up, you also might want to have liability insurance for your boarders. Can you sustain your business/lease if half of your boarders suddenly drop out? Will you be competing for use of the arena for lessons (i.e. other trainers working at this barn)? Will you be taking arena use away from the BOās other boarders?
My first thought since you do not own this property is - how well do you know or get along with the property owner?
I ask this because time and again Iāve seen these situations go belly up because the property owner was completely impossible to work with - no matter what they say to your face or whatās on the papers they sign.
Iād make sure the agreement with the BO is rock solid and the term is years rather than months. Too often Iāve seen a profitable business get ambushed by the property owner because they perceive your success as coming by way of their loss.
Donāt forget to budget for things like:
Gas for the tractor
Tractor maintenance
Do you already have an arena drag?
Reseeding pastures
Equipment replacement ( pitchforks, buckets, hoses, etc)
Arena maintenance
Fence maintenance
Will you fly spray the horses daily?
Manure hauloff? Or?
Utilities (the #1 forgotten about cost IME)
Will you renting space by the stall? So you owe $1500 even if your stalls arenāt full?
Having my own barn has been my lifelong goal. But Iāve also put a LOT of thought into it, built a business plan that Iām constantly modifying, and had an amazing local professional work through it with me. My business plan is built such that I need to break even if I need to pay someone to do 100% of the work. As it should be. You should not be free labor. You need to pay yourself also for whatever you work you are doing.
You areā¦but then again, we all are
Be sure to fudget for unknowns. Facility maintenance etc. always costs more than you think it will, so pad everything.
There are a couple, but none that Iāve loved. Iām writing one now that I can give you early access to if you want to try it - pm me for details. Iād love to have another tester to help guide the process.
Itās a business. Youāre going to want an accountant, and youāre going to need to file a variety of different kinds of taxes. Iād consult with one who knows your state well, but be prepared to file taxes quarterly to the feds, depending on the business.
This is a hard question to answer without seeing your finances and your plan of care. How much are you planning to feed, what are you going to do with horses who require more, are you factoring in for repairs or is that handled by the facility ownerā¦loads of questions here.
We have two documents, rules and the boarding agreement. The agreement is fairly straightforward, but the rules are probably a little more extensive - have you thought about those yet?
Iām sure other people will fill in with more data, but the people who Iāve seen succeed in this business have a few major characteristics.
The first is a strong bent toward customer service - boarderās expectations and their perception of what they pay donāt always align. It can get worse when the barn owner doesnāt feel that they are in the customer service business. Polish up those skills, because youāll use them (by the way, what Iām talking about are dealing with complaints, pushy people, rule breakers, etc.). Itās a fine line to walk, and youāll have to walk it every day. Iāve seen people succeed when they communicate well, show genuine interest in their boarders and their horses, and stay endlessly positive.
The second (related to the first) is the ability to ānot take offenseā. Itās easy to become bitter in this business. No, almost no one will appreciate how much money or effort you put into your facility or the horses. They wonāt because they canāt really fathom how much it takes to run a barn (much less a āniceā barn). You have to have a spine of steel to not take minor complaints to heart (while at the same time knowing how to deal with the situation well). Itās tough, but itās doable. Itās hard when youāre pouring your soul into things to hear negative Nancy complain that her laminitic pony needs to be on the lush grass and how cruel you are as a barn owner for not letting her do it or the person who complains about every little thing. Be prepared to be firm, and not take it personally. If you are the type of person who canāt do this, I highly recommend you do not start a boarding facility.
The third part, and this is the part that many horse people havenāt thought fully through, is how you are going to handle the boardersā care of the horse. Think through how youāre going to have that hard conversation with that boarder who isnāt feeding/calling the vet/farrier/grooming/whatever their horse appropriately. Are you going to kick them out? Do the care and charge them? Let their horse suffer because they canāt get it together? Put those things into your rules and enforce it.
Iām sure Iāll think of some more, but this should get you started!
Think through this HARD. BEFORE Linda doesnāt want to let Dobbin cross the bridge even though Dobbin is down groaning in pain for 24 hrs.
Consider, if the barn is large and has many stalls, will the owner be happy with a renter that only uses some of it and wants to only pay for what it uses, or one that will fill the barn and keep it full and pay for renting the whole thing?
Your numbers seem low.
How much feed/grain/bedding are you estimating per horse? Whatās the labor rate youāre estimating?
Business plan, business plan, business plan.
Some considerations for that plan:
Boarding is your loss leader. Lessons are where you will actually make money. The reason to have boarders at all, rather than a straight up lesson barn, is to have an income stream that is not dependent on weather or your availablity. You need to write your business plan in such a way that you have enough income coming in to keep the barn running when youāre snowed/iced in or have torrential rain for three weeks or thereās a stangles outbreak in your lesson horses.
Thereās another small advantage of boarders plus school horses, youāll be leveraging a bigger bulk discount on hay, shavings and feed.
Forget what other people in the area charge for board, and start from the ground up and figure your cost (Include labor, yours or someone elses, at $15 - $20 an hour plus FICA and Workerās Comp.) Ask BOs and BMs what it costs to keep a horse in a stall in your area; and try to find someone whose standard of horse care is similar to yours or what you would like it to be. Make sure you understand what theyāre including/not including. For example:
I managed a barn where the farm grew all itās own hay, providing the boarding business with hay at cost. This allowed us to be very competitive on board, and not be stingy with the flakes, probably the #1 boarder complaint.
I once worked a TB training facility and the familyās primary business was a saw mill and lumber yard. A truck from the saw mill rolled in with shavings for bedding twice a month. This allowed them to be competitive on their training board price.
Add at least 20% to the top of the actual cost for your board rate. That will still be a break even point, because, poop happens.
A challenge for the hybrid board/lesson plan is you have to minimize your time working in the barn, and maximize your time in the ring. You either have to have low drama boarders, a good assistant, or both.
I would want to know whatās included for that $150 dry stall rate. If itās just the stall, thatās pretty high. If the owner is responsible for maintaining the barn, paying utilities, trash pick up, maintaining pastures and fences, etc., that it may be very reasonable. Find out. Have a thinking partner come up with potential expenses/scenarios you may have missed, like manure removal.
Do call around and price liability insurance, and investigate if you can waive WC on yourself and pick up private disability insurance.
Consider start up costs for the lesson business. Do you already have school horses? Whatās your plan for sourcing them? Beware the free or very cheap school horse - itās quite possible that a lovely older horse with some maintenence requirements canāt be used in lessons enough to offset the cost to keep them. So beware of hard keepers, expensive shoeing requirements and other maintenence. Make sure you budget enough for tack for the schoolies! Thatās a hard up front cost and itās a killer.
In conclusion, do a LOT of research and understand the numbers before you dive in. It can be done successfully, but it very rarely is.
Also, decide in advance how youāre going to handle your loyal lesson horse who is no longer able to work, whether thatās a long term lameness or retirement. Very easy in a small barn to all of a sudden have filled up with non earning equines that instead are costing you a lot in maintenance. Very difficult to be the hard hearted person who euthanises or puts through an auction that old friend.
If you are not paying out for shavings and grain . If you are not paying insurance or water or electric or paying someone to clean stalls, turnout and feed. If all you supply is hay and do the work yourself you might make a profit. That depends on where you are and what hay prices are .
I also assume you are liable to fix fencing, maintain pastures & arena footing and repair damages at your cost??
Really great points! I canāt do quotes with this new COTH on my phone, but Iāll try to address everything.
Iād like to keep the amount of boarders down where I can do all the work myself. Ten would be my max, as more then that just isnāt fun for my 40ās body. . I honestly would be fine with 5 or 6 horses. Mainly it would just be a better facility to teach my lessons at.
The horses would all have stalls, but would only be in during inclement weather. Thatās how most barns do it around here.
Iāve known the BO for decades so so worries there.
I have ten acres at my home, so so my lesson horses arenāt going anywhere. Just ask my 20 year old mini with advanced COPD. . He costs me more then anyone, but Iāll never get rid of him. I would always choose to euthanize over rehoming an old horse.
Letās see, for feed, I factored the price of either 1 1/2 Triple Crown 30, or 6 lbs of Triple Crown Sr, plus Beet pulp and Alfalfa pellets. I donāt remember the weight I used for those, but not a ton. Some horses may need less, some more, but I thought that wasa good starting point.
Hay I factored in what mine usually eat, plus more, since I donāt have stalls.
I need to talk with the BO on fence repair etc. I also want to make sure that her husband can bushhog the main pasture as itās in terrible condition right now from being over grazed.
Iāve taught lessons for quite a few years so thereās no start up coats there. I have saddles, helmets, bridles, grooming equipment, etc.
This would not be my sole income. I mainly just want to break even with my own Equines, and have a nicer facility to teach at, plus my 10 year old wants a ābarn familyā.
If your intent is not to run a business and profit from it, double check with your accountant.
The IRS may considered it a hobby.
Is there good pasture or mainly easy keeper breeds/ponies? Otherwise your math seems very optimistic. I am in a part of PA where I can buy great hay for $6/bale and do all my own work for my retiree and her supporting cast of two mini donks. My mare is a super easy keeper. Iām bit compulsive about keeping track of expenses and all in (trims, no shoes) without a vet emergency and no fancy supplements I spend $280/month to keep her at home with good grass 7-8 months a year.
I know you said the horses would mostly live out, but you should also think about beddingāI know my trainerās bedding costs just went up quite a bit this year.
Absolutely right! The previous trainer had about 20 horses, and got a $300 load every other month or so, which was actually cheaper then I had originally figured.
Yes, back to this. The fact that youāve known the BO for years may be harder than you think. For example, who will mow the pastures and how often, and what will you do if the BOās husband just doesnāt do it as agreed upon? Also, if nothing is included with the $150, will you be able to negotiate that without it ruining a friendship. Itās tough to say āCome on, youāre crazy if you think Iām giving you a $1000/month for nothing but empty stalls and a lot of liability - $750, take it or leave it.ā
And alternatively - how you will handle with someone that simply disagrees with your idea of horse care? I boarded only a few months before I decided that the BM didnāt have the same standards that I did; and when she interfered in a decision made between me and the vet, I was out.
But also - things like routine care - dental, vaccines, deworming strategies, etc., will usually be cheaper if the vet comes out for all horses together. How will you handle this - you call/schedule, hold/manage horses? Or every boarder calls separately and hold, etc.? I would offer to schedule/hold with your vet of choice, but if their vet of choice - itās on them to schedule/hold. For vaccines and deworming, I might say - let me know by XYZ date or your horse will be scheduled and charges added to your next bill. Or something like that. Not sure how other barns do it.
Youāre not planning on running a business; you are planning on subsidizing your hobby. Thereās a difference. Tough decisions come with business like putting down the horse with high expenses that doesnāt generate income. If you canāt make the tough calls you shouldnāt open a business.
Iām at a barn that is a couple years old in itās current configuration. The current trainer took it over from a nearly dead guy before he passed. Trainer grew up in the business, but has learned A LOT in the last 18 months. Every time we talk, I tell him to charge more.
And there is absolutely nothing wrong with that. There are a lot of nice barns out there that exist for exactly the same reason.
However, you still need to know your numbers so you donāt end up susidizing someone elseās hobby along with your own.
I board retired horses, and usually have 8 -10 horses. So, not exactly the same as you, but Iāve been doing it 15+ years. My 2 cents is: Since you donāt absolutely have to take everyone who wants to board, be very picky about who you accept. I think this is the main reason Iāve generally had a good experience boarding.
The main thing to screen for is that you and the boarder are on the same page with regards to horse care. If you arenāt, one of you will be unhappy. Next, screen for personality ā are they high maintenance and very demanding? Entitled? Treat you like the help? Donāt take them!
Ask for references, and provide them. Both parties want to know they arenāt dealing with a crazy person. I ask to speak to their vet and current or former barn owner. (I offer my vet and current and former boarders). Ask if they pay their bills on time. Give heavy weight to the barn owner where theyāve boarded 13 years, and discount/consider it a red flag where theyāve boarded 3 months.
I could go on ā I have certain things I really look for in prospective boarders, and certain things that are red flags, but most of these have to do with the fact that Iām dealing with retired horses that have no monetary value.