Questions for Equine Business Owners

[EquiFinale]

Hi Everyone,

I’m new to posting in the forums here - but have been actively reading through them for a while. I’ve been riding competitively for 16 years and am in the stage of my riding career where I’d like to start my own facility. I’ve read enough forum posts & been in the industry long enough to understand there is not a fortune to be made in a boarding & training facility. However, I’m reaching out to understand what business issues/struggles people have run into as they’ve ventured down this path and what people wish they knew about managing this business before they started. Are there any business resources you would recommend I read/be aware of?

I’m really just hoping to wrap my arms around the potential struggles/pitfalls/challenges of the business management of a equine facility.

[Lord_Helpus]

Just a guess, but I bet that people are thinking there is not enough information to be of any help. Boarding and training are 2 entirely different topics. Will you own or rent the facilities? How big a barn are you thinking of? What part of the country do you live in? What would your competition be with similar barns?

I do not even know enough to suggest enough possible subtopics; you have posed such a broad question.

[Groom_amp_Taxi]

Outsider looking in (i.e. not a business owner), but based on what I see consistently in FB groups around here, finding and keeping barn help seems like an on-going issue,. Unless a barn is small enough for the owners to do all the work themselves, the places that actually hire and pay people to do the daily work (feeding, mucking, arena and paddock maintenance, turn in and out) seem to do better than the ones that rely on barter for board and or training.

[angelssix]

@Groom&Taxi

Outsider looking in (i.e. not a business owner), but based on what I see consistently in FB groups around here, finding and keeping barn help seems like an on-going issue,. Unless a barn is small enough for the owners to do all the work themselves, the places that actually hire and pay people to do the daily work (feeding, mucking, arena and paddock maintenance, turn in and out) seem to do better than the ones that rely on barter for board and or training.

I completely agree. I would NOT do any work for board/discount boarding agreements with anyone.
My experience at three different barns thus far has seen those people not be in the best interests of the owner or the other boarders. Paying someone to work gives you the ability to send them down the road should they not meet your standards. I also would steer away from self care and field boarding. Again, the people that had those agreements typically were more of a pain in the neck to the barn owners than it was worth.
This is simply my opinion, based on my experience. I know one barn where the owner was always full (hunter barn) and everyone either was leasing or boarding a horse and was hunter in training.
The other problem that I have seen is a barn with multiple types (disciplines) of riders. It creates conflicts especially if there is an indoor arena! If you do have a riding ring and there will be people taking lessons, a white board is your best friend. Lessons should always have the priority. If a student is paying for a trainer’s time, it should be respected without interruption. It is typically hard enough to learn to ride without others interfering in your lesson flow. Again, one of my pet peeves, some others may not mind so much.
Don’t be afraid to ask a boarder to leave. If one person is a constant source of drama, always leaving a mess behind, disrespeting others, send them packing. Plenty of people looking for a place to keep their horse. Be very clear on your rules with everyone. Put it in writing and have each boarder sign it at the same time they sign boarding agreement and waivers.
Hold a meeting of all boarders at least quarterly, if you are not at the barn frequently. If your barn will have a barn manager, do not give your personal number to anyone. People will circumvent the barn mananger and not show them a bit of respect if they know they can just call and gripe to you. If they have an email address that you can respond to in case of a serious issue, that should be sufficient.
I could go on, but I think there are a few things to think about.

[Scribbler]

You need to be really competent at whatever discipline you train and teach.

You need to have a very strong work ethic, and healthy mind and body.

You need to be able to stay focused.

You need to have a facility where your basic costs don’t make it impossible to break even.

You have to be conveniently located for the clientele you want.

[ladyj79]

I think one of the most important business resources to utilize is a healthy non-horse related income.

[rhymeswithfizz]

I’m not a pro or even close, but most of the professional trainers here train out of someone else’s facility, with someone else in charge of boarding and barn management. Are you intending to do both boarding and training, or just one? Doing both would require a significant financial investment, unless you already have a facility of your own. (I just priced building a simple, small indoor arena at our farm and I had the sticker shock of my life.) Most folks who can afford even a mid-range facility have different day jobs.

[gottagrey]

One of the biggest pitfalls I see is when you rent a facility and you and owner stop seeing eye to eye on how things are run and/or who pays for what, or owner decides to sell. It can be hard to maintain a business if every few years you’re having to look for a new barn to rent. Where I live there are some trainers who’ve been in the same facility for years and years and others who seem to have to move/relocate every few years - which can mean increased board and travel for clients.

[RedHorses]

Decide what you want to offer in the way of services and management, and don’t take on any boarders who want extras. The barns I see struggling are those trying to accommodate every horse, every discipline, and every rider.

Multi discipline is not a bad thing in itself. Nor is field boarding, group, private turnouts, or any mixture. Provided you are set up properly.

​​​​​Be specific and don’t get sucked into extras just to get boarders into the barn.

[EquiFinale]

Thanks everyone, you’ve all given me solid food for thought. Really like the approach to managing boarders & expectations carefully.

To be more specific, I have existing land and fortunately a partner with a non-horse paycheck. I’ve priced out a small-medium facility ~15 horse barn where I’d like to offer lessons and boarding. Yes, there was definitely sticker shock over the cost to do this - but I am mostly concerned about the actual financial/managerial side of the operation. I’m trying to make sure I’m being completely objective and looking for any & all issues that could hurt financially so that I’m not wondering into this missing all the facts.

[Redlei44]

Staffing is usually the biggest expense and can be a headache to find good help, and then keep that good help through ups and downs in the business. From what I have experienced, you need to decide/balance what kind of program you want in order to properly plan you staffing needs. As mentioned above, standardizing your service offering as much as possible is your friend. If you have a barn full of clients who are all on full care and full training (and you charge accordingly), great - you know you need x number of skilled grooms and that you yourself will have a full schedule riding. If you have a barn full of basic boarders and you require a certain number of lessons per month, fine - you need x number of semi-skilled barn laborers. But if your barn is a constantly changing mix of field board, basic board, and full care clients who some months pay for training and grooming, some months just take a few lessons, and some months nothing at all, you might very well run into staffing capacity issues month-to-month. That doesn’t even count months when the barn isn’t full, or times that you go away to a show and must staff accordingly. Relatedly, decide how much grooming and barn work you yourself have capacity for - don’t purposely short staff to save money and end up burning yourself out or not having enough time to ride, teach, and run the business.

[Palm_Beach]

@EquiFinale

Thanks everyone, you’ve all given me solid food for thought. Really like the approach to managing boarders & expectations carefully.

To be more specific, I have existing land and fortunately a partner with a non-horse paycheck. I’ve priced out a small-medium facility ~15 horse barn where I’d like to offer lessons and boarding. Yes, there was definitely sticker shock over the cost to do this - but I am mostly concerned about the actual financial/managerial side of the operation. I’m trying to make sure I’m being completely objective and looking for any & all issues that could hurt financially so that I’m not wondering into this missing all the facts.

You should take some business courses. The biggest problem for most companies is cash flow - you need to have money coming in on a regular basis to cover your expenses. You will have fixed costs (mortgage/rent, insurance, equipment/vehicle payments, utilities, etc) and variable expenses (hay, repairs, etc). You really need to have a good handle on this, as well as a realistic view of how much business you will attract. Can you really truly keep the barn full and the training/lesson schedule full?

You will have to make decisions like, “Should I spend XX dollars on a nice trailer which will improve my image and project success to potential clients, plus it may be more reliable and safer, or would that money be better spent on new footing, or should I put it towards next year’s hay because I’m getting a big discount from the farmer if I pay up front…” You will need to analyze how much money to spend where, and what kind of return you will get for spending that money.

I’ve known multiple individuals who try to start boarding/training operations, and they always overpromised and underperformed. They underestimated how much time and money things cost, and that promised indoor did not get built the first year (or second, or third…), they could not afford to pay help so the trainer is trying to ride, teach, muck, feed, turn out, etc… There always seems to be a huge hump to get over in the first few years, and if you survive that in good order, you are OK, but many don’t make it, and end up being another mediocre facility with falling down fences and bad footing and no grass.

But best of luck to you, and it seems that places that only accept boarders who also lesson do better than simple boarding operations alone. Meaning board includes a weekly lesson, or 4 lessons a month, etc. It’s up to the boarder to show up for the lesson.

[Bluey]

Don’t forget to provide for all those clients in the horse world that don’t pay on time, plus those that don’t pay at all.

Don’t depend on your cash flow to come from timely payments.
Too many will pay horse bills last.

[clanter]

nothing encouraging to say but I would build a kennel and board dogs and cats before spending several hundred thousands of dollars just to work my self to the bone and be worried all time … not my idea of fun

[EquiFinale]

@Palm Beach

You should take some business courses. The biggest problem for most companies is cash flow - you need to have money coming in on a regular basis to cover your expenses. You will have fixed costs (mortgage/rent, insurance, equipment/vehicle payments, utilities, etc) and variable expenses (hay, repairs, etc). You really need to have a good handle on this, as well as a realistic view of how much business you will attract. Can you really truly keep the barn full and the training/lesson schedule full?

You will have to make decisions like, “Should I spend XX dollars on a nice trailer which will improve my image and project success to potential clients, plus it may be more reliable and safer, or would that money be better spent on new footing, or should I put it towards next year’s hay because I’m getting a big discount from the farmer if I pay up front…” You will need to analyze how much money to spend where, and what kind of return you will get for spending that money.

I’ve known multiple individuals who try to start boarding/training operations, and they always overpromised and underperformed. They underestimated how much time and money things cost, and that promised indoor did not get built the first year (or second, or third…), they could not afford to pay help so the trainer is trying to ride, teach, muck, feed, turn out, etc… There always seems to be a huge hump to get over in the first few years, and if you survive that in good order, you are OK, but many don’t make it, and end up being another mediocre facility with falling down fences and bad footing and no grass.

But best of luck to you, and it seems that places that only accept boarders who also lesson do better than simple boarding operations alone. Meaning board includes a weekly lesson, or 4 lessons a month, etc. It’s up to the boarder to show up for the lesson.

This has been incredibly helpful - thank you for the insight - definitely agree on looking for business courses, unfortunately there does not appear to be an abundance of them dedicated specifically to the horse industry. I think a deep dive into HR related topics for staffing issues that have been referenced would be a good bet for myself as well.

Thanks!

[CHT]

From what I have seen in my area, there seems to be three successful business models: Large volume but limited service provided, small volume, but large amount of services provided, and medium volume and high service level.

Ex: Large volume/limited service would be a facility that has limited need for staff by feeding round bales (or pasture), not offering inside board, and not offering a lot of on-demand extras. May or may not have a lesson/training program. There are a few places like this around here that have 75+ horses on sight because of their limited offering of service, don’t require full time staff. Low rates ensure demand despite being quite busy.

Small volume but large services would be a smaller facility (under 30 horses) but that offer training/lessons, and some indoor board. The small amount of indoor board means that one person can handle chores if needed, but the additional revenue streams of training/lessons allows for additional staff (grooms/instructors that can also help with horse care). Good for an owner/operator that can provide training/lessons.

Medium volume/high service is 30-40 horses, typically with a show coach/program, grooms, training programs and such. High price/service level allows for high staff per horse ratio. Of course you will be expected to maintain a consistent high level of service.

Businesses that do not seem to do well are the ones that rely on one staff person with no back up: if they are sick, injured or lazy, the quality of care can suffer quickly. Having on-site (live in) help can make them more reliable, but if they quit/are fired, evicting them can be complicated.

If you are female, look for a group/club for women entrepreneurs. They can open up doors to grants, resources and helpful support/advice. It doesn’t have to be equine specific to be helpful. Basic bookkeeping and business courses can help with management even if general (not equine specific), and can likely be done online, but taking an actual course may help you more (as you can better address specific concerns).

[Displaced_Yankee]

I highly recommend taking an “Intro to Business” class at your local community college. Something that goes over business entity types (LLC, partnership, sole proprietorship, corporation and the pros/cons of each), financial statements (balance sheet, income statement), etc. You will get a lot of good information on basic business and accounting that will be highly relevant, even if not directly horse related.

I also suggest finding a bookkeeper or an accountant who can help you navigate business and tax matters. As an accounting professional who also rides/competes I often talk business with people in the industry. I am shocked by how little they know the basics. No, your loan payment is not an expense (well the interest portion, but not the whole thing). No, not every meal is business deductible (besides you only get 50% anyway). They can help you determine how much you are making and where you are spending it. So many people don’t even know if they are making any money…

Invest in accounting software of some sort. Quickbooks Online is cheap, but a monthly subscription and my recommendation. I know there are some free accounting softwares out there but cannot speak about them.

[mlinky]

You might consider some on line equine business courses. A quick Google search came up with some:

https://www.usca.edu/epcec/continuing-education/online-learning/equine/courses-offered/
https://www.stonebridge.uk.com/course/equine-business-management
http://www.equinestudiesinstitute.com/psm_legal_course_description.html

Years ago, I did a complete business plan for a large training/riding barn. What I found out is that you lose money on the training horses, break even by adding lessons, and make a profit from commissions buying and selling horses. Most of the people that have small barns where they can take care of everything without hiring help manage to eke out a living. When you get into needing employees, you are suddenly dealing with a whole host of costs, including worker’s compensation, wage & hour requirements, withholding taxes, legality, etc.

[Scribbler]

Also be realistic about how many horses you can train in a day. How many lessons you can give. Etc.

[Palm_Beach]

@EquiFinale

This has been incredibly helpful - thank you for the insight - definitely agree on looking for business courses, unfortunately there does not appear to be an abundance of them dedicated specifically to the horse industry. I think a deep dive into HR related topics for staffing issues that have been referenced would be a good bet for myself as well.

Thanks!

You need plain old business courses. Every business is a business, and the same principles apply. Then you fill in the holes specific to the horse industry. And take the time to set up a professional bookkeeping system - you will need to be able to analyze your operation by crunching numbers in many different ways to see what areas are profitable and what services you offer that may not be profitable.

For example, you can offer clipping services, but maybe the rate per hour of clipping is way lower than what you could earn riding/instructing. But if your client base is still small, it may be worthwhile to offer clipping. As your business grows you may have to jettison (outsource) some services and focus on those that you have time to do and that bring in a lot of money.

Would it be worthwhile to purchase a large commercial washing machine and offer blanket/laundry service? What should you charge? Should you pay cash for the washer, or finance it?

What about getting some vending machines so clients can purchase drinks and snacks? You can buy them and stock them yourself and keep all the money, or there are businesses that drop them off, stock them, and give you a percent of the sales.