Just food for thought. Letâs think outside of the box. Letâs just say youâre a consultant, hired by USEA who wants to maximize profit, and theyâre a SMO (sustainable management organization) This means they want to think long-term staying in business and care about all stake-holders. Our stakeholders? amateur riders, juniors, professionals, family members, show organizers, companies that produce products riders need, and most importantly the horses.
While as a business you want to be efficient with your spending, long-term you donât sustain yourself by pinching all costs. So cutting costs arenât a viable option. (Iâll cut this paragraph off, just believe me.)
The other side is increasing revenues. Now weâre an SMO, and SMOâs believe that increasing revenues is only as important as maximizing stakeholder âhappiness/agreeablenessâ. To sustain: happy stakeholders. As a consultant, this person wants to encourage US eventing to make smart decisions today, that provide future cash flows. I have to figure out first what I need my future cash flows to be to sustain this organization, then discount them back to decide what those future cash flows are worth today.
I may for example see to sustain, I want entry fees to be this low for happy riders, but increase costs to provide these amenities for happy horses. So I need X # of dollars. Discount that back to today figuring the amount of risk involved plus the time it takes for an investment to create that cash flow and I can decide what investment I make.
What investment/cost can this organization make today, that can over the long-term sustain this sport. I donât believe either supporting a specific UL rider who canât be namedâs NOR decreasing entry fees immediately are sustainable investment decisions.
You must find a secondary source of revenue outside of your current ones. (is what this un-biased consultant may or may not say.) If you fail to do so, there is risk that a group of stake-holders will fall short. If you lose any viable stakeholder youâre not looking that sustainable. You lose the riders or pros and thats some decreased cash-flows. You lose the horses? Letâs not even think about that.
Find a secondary source of revenue.
(But, remember, we need to keep our current stakeholders happy and safe to also remain sustainable, so the sport itself may not find its best interest to evolve its roots, and new revenue brings in new stakeholders that do need their own return)
So, my little contribution and input would be if an organizer wanted a gung-ho young adult to try and pull together outside spectators, Iâd give my time for that? i went on this tangent on another thread. Iâve got to stop writing late at night and using the account with my name on it. 