What contributed to your successful equine business being successful?

[fizzyfuzzybuzzy]

My dream is to one day have my own farm. I am currently working in the veterinary industry, and will continue to do so until I have saved enough money to start my farm business. I have a lot of experience managing farms, from small to large. The management part of it is not my question really. I have yet to find a pattern of what makes one barn successful and another similar business not be successful.

How much is luck? How much can you truly plan to make it successful?

Are many streams of income better than focusing on 2 or 3?

What aspect of your business is your make or break? If you didn’t have it, your business would not be successful.

I am going to start writing my business plan soon, so at this point, it’s all theory!

[Miss_Motivation]

Good timing- there are several good threads right now that address some of what you are asking.

Bottom line: horse operations are generally hobby farms that are supported by additional streams of income from ‘real jobs.’ Unless you are extremely lucky and find a great location with great facilities in good repair at a rock-bottom price, you will have a difficult time making a horse business successful. And I am defining successful as supporting you in a modest lifestyle, doing what you love.

If you have had a lot of experience managing farms, then you should be well on your way to understanding many of the financial pitfalls you’ll have to overcome. If you only managed the horse operations, and not the real estate, insurance, and HR aspects, you should become extremely comfortable with those areas.

And COH forums are a great way to get honest feedback on just about any topic that comes up. It’s not because we are old, tired, and poor that many of us who have done what you are dreaming of give this advice: “Go to college, get a degree in a high-demand field, get a great-paying job, and board your horse with us.” It is because most of us were once you, and because we are now old, tired, and poor we realize that our dream of owning a nice little farm has, to some degree, robbed us of our passion for horses.

When I was a kid, I could never understand how someone could ‘get out of horses.’ That would be like… like not breathing. Now that I am over 50 and work two full-time jobs, one of which is the farm, I really envy my boarders who can pay me to take great care of their horse with no other investment than monthly board on their part, and have multiple other lives: families, work, fun… It would be a delight to be one of the boarders at my own farm, because my expenses would be known and manageable and i would be able to ride and have fun with my horse. It’s been a great adventure, but the concept of having a horse for fun, not trying to caretake 50 horses for a profit (or break-even) is looking attractive today.

[fizzyfuzzybuzzy]

All very good points! But I’m coming from the other side. I work in the veterinary field, but it’s the corporate side of it, so better paying than most vetmed jobs. It’s still not enough to comfortably have a horse. Most entry level jobs (even doctors, lawyers, etc) do not pay enough to have a horse unless you were lucky enough to have your parents pay for college (including living expenses) or got amazing scholarships. It’s one of the reasons I didn’t go to vet school.

And there would be “real jobs” involved, my plan is to continue to work until the farm is self sustaining, and my husband will continue to work outside the farm.

I respectfully disagree that the only investment boarders have in their horses is board – true, they are not “tied” to the farm on a daily basis. But often are “chained” to a desk, without the availability to ride in the darker winter months, or get away for a horse show, or tend to an ill or injured horse during business hours. And if you have to pay another to do all those things, the hours you are chained increased, making it a vicious circle. The only solution to this conundrum is to be independently wealthy. :lol: I’ve looked into it…they aren’t hiring.

I am completely comfortable with all aspects of managing a business (I’ve managed outside of horse farms as well), but I have not owned my own business. So that is really my learning curve. I am hoping to investigate different loans to buy the property, and might even buy a canine boarding kennel that is already generating income on some acreage and add the horse facilities. That would open up SBA loans for some. The general plan is to keep it somewhat small – 6-10 horses in stalls, maybe 15 horses max on the property.

Do you only board? Do you buy/sell? Lessons/training/showing? Breeding? Rehab? Consignment? Something else I haven’t listed?

[Blume_Farm]

I have owned my own small animal hospital for 9 years now so have gotten through the learning curve of small business ownership. I also own my own personal farm (no boarders) so understand the work that goes into that part of life. Here are a few things that I have learned:

1. your biggest issue will be employees. Generally I love my staff, but many can be unreliable, lazy, don’t take directions well, etc. Over the years I have grown from a staff of one to now eleven. It doesn’t get better, just more personalities to juggle!! I actually like this part of my job, but you have to be flexible, you have to know you will be the one responsible to do the work when a staff member calls in sick/ doesn’t show up (I have done kennel work on many a Thanksgiving/ Christmas), I don’t go away for holiday as that is when staff are least dependable. You have to make lots of concessions to keep staff content, happy and well trained.

2. Clients like to complain. When you own the business you get all complaints from your staff AND clients. And when it comes to someones animals (or children) everything is a complaint:) Some will be reasonable, sone will be unreasonable. For me it took a few years to get to the point where I could tell a client “sorry, can’t do that”. I am ALL about customer service and will go out of my way for good clients. But I will no longer go out of my way for the client that just is always unhappy. They will be unhappy anywhere, it is not me. I now politely tell them no or let them move on.

3. Contracts. Have it ALL spelled out and signed. Even with that people will still complain. We do a “vaccine program” at my place. It is a one page contract, bullet points and clients have one commitment “must be current on annual exam with a 30 day grace period” to stay active in the program. I have had not once, not twice, not three times, but four this year clients that openly stated they knew they missed their annual exam, got the email reminder, got the phone call reminder, got the postcard in the snail mail, knew they signed the contract, but got UNREASONABLY ANGRY PISSED when told they were no longer enrolled in the vaccine program. They left the practice and had records faxed to another facility. You have to be prepared to calmly handle these situations as they WILL happen.

4. business plan budget: it is always more than you think. All of a sudden there is a leak in the roof, a leak in the plumbing, a tree falls on the fencing, a gravel road gets rutted, some stall fans break, tractor breaks down, etc. You can budget for feed, shavings, labor, phone bill, electric bill, cost to buy tractor, arena drag, etc but you can’t budget for the “oh craps”. Always have 3 months of working expenses in the bank. To keep good boarders you place must be kept up…fences immediately repaired properly and not with bailing twice and spliced electrical tape, arena footing repaired if damaged and not just a cone placed over the “soft spot”, stall walls repaired if someone kicks a hole, etc. This is not your personal farm, but a business facility.

The most important thing IMHO that makes an individual a successful small business owner is one that is willing to work hard without getting unhappy, able to be flexible, able to handle staff issues and personalities and able to handle client needs/ complaints. Good luck!l Having said that I have yet to meet the person that really makes any money off a boarding facility. It can help subsidize a personal property, but one almost must offer training, clinics, shows, etc to generate some more income.

[fizzyfuzzybuzzy]

Thank you for your insights! I experienced most of those things as a small animal practice manager. I was expected to shield the owner from these things, except in dire situations. I also worked with the budget, so understand that things always go wrong. Always.

I am planning on multiple streams of income within the farm – I will definitely board, but also teach/train as well as buy/sell a few a year. I feel like the teaching/training is the stream that is most reliably one that will bring in income from my experience. Have others experienced this as well?

I’ve heard that breeding is a low/no profit business, and buying/selling can be great, but goes up and down with the market. With my experience as a vet tech, I am hoping I can incorporate some rehab into the boarding side, as it’s something I really enjoy. I’d definitely be open to taking on consignment horses, but I feel like I’d need to build my reputation big-time before that could/would be a viable revenue stream.

I would actually like to add some veterinary services to my barn at some point – maybe have an equine vet work out of my barn? A place to bring a horse that needs more intensive care? Post surgical care?

[whbar158]

Boarding in general does not make money, most are often lucky to break even. Money is made with a steady solid lesson program. Yes those kids that ride once a week in groups are what supports the riders who go to shows. Most of those once a week riders do not become the show kids, but some do.

So what side of it are you looking for? If a lesson program isn’t your thing it will be much harder to make money. Also having good sized pastures really helps where some horses can live out (especially those school horses).

I have watched my friend over the last 10 years and she has a good successful program, but it took some time and there were some bad years. It was a tough start because of her budget for school horses but over time she has upgraded them and really improved her horses and has been able to upgrade things. She does NOT buy/sell horses nor do training board it is a strictly lesson barn with boarding for her students (usually, if she has enough open spaces she will take a random person, but currently she is full full full so spots are only for student horses) she is pretty full for lessons too.

So what is it that you want to do?

[whbar158]

[QUOTE=fizzyfuzzybuzzy;8281850]
Thank you for your insights! I experienced most of those things as a small animal practice manager. I was expected to shield the owner from these things, except in dire situations. I also worked with the budget, so understand that things always go wrong. Always.

I am planning on multiple streams of income within the farm – I will definitely board, but also teach/train as well as buy/sell a few a year. I feel like the teaching/training is the stream that is most reliably one that will bring in income from my experience. Have others experienced this as well?

I’ve heard that breeding is a low/no profit business, and buying/selling can be great, but goes up and down with the market. With my experience as a vet tech, I am hoping I can incorporate some rehab into the boarding side, as it’s something I really enjoy. I’d definitely be open to taking on consignment horses, but I feel like I’d need to build my reputation big-time before that could/would be a viable revenue stream.

I would actually like to add some veterinary services to my barn at some point – maybe have an equine vet work out of my barn? A place to bring a horse that needs more intensive care? Post surgical care?[/QUOTE]

IME lessons are the best, especially group lessons for making money. I would not be looking at adding too much at once. Way too much start up cost because to do that many things you will need more staff start with something and get cash flow before expanding plus then you will know better if it is needed or not.

[fizzyfuzzybuzzy]

I do want to have a solid lesson program, and intend to continue my education to attract potential students. I would also do training board, and a small amount of buying/selling. I would also like to offer lunge lessons, as that seems to be lacking in my area. So I would need to find a lesson horse that is appropriate for that. I do plan to keep my sales and lesson horses outside, and reserve the stalls for boarders/training board/rehab. I do not currently have a place, but am actually going to look at a possible farm to lease. It seems to have everything I am looking for. I do want to keep the boarding aspect small (6-8 horses inside with my own outside) as it does seem to suck your time with little return.

[AKB]

I have one friend who has a successful horse business. She has a very nice upscale facility with a XC course, show jumping field and dressage ring. She rode for the US team, so is well qualified to teach. She hires a barn manager, rider/asst trainer, working student, and farm maintenance man. She does training board, lessons for people who trailer in, and sale horses-mostly youngsters who she imports from Ireland. When the economy is good, she does well. When the economy is bad, she does not break even. Fortunately, her husband has a good job and family money to get her through the difficult years.

[Blume_Farm]

[QUOTE=fizzyfuzzybuzzy;8282335]
I do want to have a solid lesson program, and intend to continue my education to attract potential students. I would also do training board, and a small amount of buying/selling. I would also like to offer lunge lessons, as that seems to be lacking in my area. So I would need to find a lesson horse that is appropriate for that. I do plan to keep my sales and lesson horses outside, and reserve the stalls for boarders/training board/rehab. I do not currently have a place, but am actually going to look at a possible farm to lease. It seems to have everything I am looking for. I do want to keep the boarding aspect small (6-8 horses inside with my own outside) as it does seem to suck your time with little return.[/QUOTE]

IMHO you are too all over the place…lesson horses, training horses, sale horses, rehab horses. Facilities that are successful tend to have a focus. With all your vet experience and depending on location running a rehab facility may be possible. If you are near a track or high concentration of sport horses you might be able to build that business. If not that is going to be a struggle. Places I know that run successful lesson programs, that is there focus as it takes up a lot of day time and weekends. Just recommend focusing your plans…

[goodhors]

You may want to read this other thread, which involves staying solvent keeping horses boarded. Hits on many other areas that are part of services offered, costs of the basics, which a horse business uses. I would never board horses, not willing to have others in my barn, do the drama thing, and would want to charge enough to turn a profit!

http://www.chronofhorse.com/forum/showthread.php?473873-Why-stall-boarding-rates-need-to-at-least-double-across-the-Midwest

Above poster with advising you focus in one area to start is good advice. What I see with new businesses, is lack of professional approach to whatever service you offer to the Public. Things not done in true business manner. My best advice would be to get a good Accountant, who keeps current on Business Taxes, to advise you. Laws change ALL THE TIME. What worked last year is gone this year. What is TRULY deductible as business expenses, what you offer that needs to be done away with as not profit making is where the Accountant can look at without bias on things that need changes. You being in the middle, have a different viewpoint, maybe “barn blind” on need to change. Having operating Capital, with income, deductions of Social Security, Taxes, taken monthly to stay balanced in the budget. The Accountant is a money specialist, tracking it for you. They can tell you how it was used when you ask, point out poor uses of it that don’t make a profit for you. Your specialty is going to be the animal care. Don’t spread yourself so thin, trying to be the expert in all areas. You pay a mechanic to fix machines, not try it yourself in most cases. You will want a Kennel or Stall cleaner, not doing it yourself. Besides the Accountant cost is deductible as a business expense!

You will need some kind of employees to give yourself a break. YOU cannot do all, be all, in these business needs, do all the physical labor, along with having a full-time job and home responsibilities. You will need some time off to de-stress, actually get a full night’s rest (8 hours) on most days or you will burn out, get sick.

[whbar158]

[QUOTE=fizzyfuzzybuzzy;8282335]
I do want to have a solid lesson program, and intend to continue my education to attract potential students. I would also do training board, and a small amount of buying/selling. I would also like to offer lunge lessons, as that seems to be lacking in my area. So I would need to find a lesson horse that is appropriate for that. I do plan to keep my sales and lesson horses outside, and reserve the stalls for boarders/training board/rehab. I do not currently have a place, but am actually going to look at a possible farm to lease. It seems to have everything I am looking for. I do want to keep the boarding aspect small (6-8 horses inside with my own outside) as it does seem to suck your time with little return.[/QUOTE]

I do not know anyone who consistently makes money with sales horses without excellent connections and the ability to get rid of the ones eating money.

Depending on how much you have to start up costs it can take awhile to really build up a good lesson program, and even with good horses to begin with it takes time, not just a few months but can take several years.

You really do not want to start off big because you will not get enough profit in the beginning to sustain it and it will take lots of work to get there and it is a tough balance between working hard and not burning yourself out, my friend has come close a few times and has had to say no to things now to keep herself sane.

[fizzyfuzzybuzzy]

I completely understand not doing it all at once! This is more about writing a business plan and showing potential expansions 3-5 years out. My first step is doing some buying and selling, as I do not currently have my own farm. So I would buy a sales prospect that I could afford to keep if he doesn’t sell and board him. I know this eats into the profits, but it’s my only option at the moment. I am also looking for a farm that needs an additional instructor so I can begin building a student base while I am saving up to get my farm. I want the right situation, so I am being picky.

[ladyj79]

Are you a top competition rider who is capable of producing top competition horses for the adult amateur and children’s hunter market? Do you als have family or so money?

I could give you real names of real people who have all of the above and still struggle financially as horse professionals.

You are in Connecticut. There is no shortage of people meeting the above criteria.

If I were you, I would only do rehab/lay up boarding For competition horses or clients with money money.

Not boarding-boarding, not lessons or training, and only do sales horses as a hobby.

I think one of the biggest mistakes horse businesses in particular make is trying to do too many disparate things and not doing any of them particularly well.

Lay up/rehab board for well off clients.

[gumtree]

We bought our present farm in 2004. I have been in the TB business my whole life. Save a few years in my teens. We set up as a breeding, raising, early training, re-hab, R & R operation. The numbers I used in my Pro-Forma were very conservative and based on many years of experience. We paid a lot of money for our property, a lot. But we were buying a business not a residence/hobby farm.

My banker complimented me on well written and realistic my Pro-Forma was. We had a fair amount of operating cash on hand and a good line of credit also. I thought I had planned for the highs and lows well enough until we established ourselves in this neck of the woods.

What I didn’t plan for was the financial collapse that started in late 2007 peaking in 2009-10. We came very close to losing our farm. In economic down swings luxury items are the first to be let go. Horses are at the top of that list. People walked away from their their outstanding bills and left us with their horses. Horses that were worth a fraction at that time of what was owed. Even if we could find someone to give them to. Very scary times. Our business has not fully recovered and I don’t expect it to. The economy has recovered by and large but people were very “spooked” and still are to a degree.

I learned years ago that the old adage, location, location, location is everything when buying property. One should always think about its re-sale value be it 5 years down the road or 20. ESPEICALLY horse property. We paid through the nose for an address. Good times or bad there will always be people with a lot of money. Our farm is located in an area where those “types” want to live. We are by far the “poorest” people in the neighborhood.

We put down 40%. By federal mandate a lot of banks had to have the property on their books reappraised in 2010. Fortunately our property apprised for 30+% more than we paid for it. Whether it would have sold for that at the time was/is debatable. It would not have sold quickly that’s for sure. I doubt it would sell quickly now. But even if we had to fire-sale it we still had plenty of equity and would not have ended up on the street.

It was quite a struggle to “hold on” and ride it out. The mental and physical stress took a toll on our relationship. I know a number of people who were very well established in the horse business that lost everything. We were VERY lucky.

[Blume_Farm]

I hate to always sound like a Debbie Downer! However, when looking at working at another training facility you can be there to build your own RESUME, but you are NOT there to build your own clientele/student base. That would be stealing clients. Therefore, I recommend finding an assistant job at a place with a stellar reputation. This way you can put on your resume that you were XX at YY facility. You do not want to start out as the “new kid” in the neighborhood as the trainer that “stole clients from YY facility”.

[QUOTE=fizzyfuzzybuzzy;8283560]
I completely understand not doing it all at once! This is more about writing a business plan and showing potential expansions 3-5 years out. My first step is doing some buying and selling, as I do not currently have my own farm. So I would buy a sales prospect that I could afford to keep if he doesn’t sell and board him. I know this eats into the profits, but it’s my only option at the moment. I am also looking for a farm that needs an additional instructor so I can begin building a student base while I am saving up to get my farm. I want the right situation, so I am being picky.[/QUOTE]

[Winding_Down]

I would not plan or rely on training and lessons if you do not already have a good following and current clients. Based on your location, you will have quite a bit of competition for these services and you will find that even the very beginners like to ride with BNRs for lessons. I am located in Area II and find that even those who aspire to Beginner Novice want to take lessons from the top pros in the area. It makes little sense but it is what it is.

If you add training board, you need to factor in extra time for training and showing horses and you also add in the risk factor of working with difficult or fractious horses. What will you do if you get hurt and cannot ride?

Ponies. Buy ponies. Then the children will come. Seriously, focusing on kids and kid programs, summer day camps etc. does generate income and you do not have to be a BNR to attract them. You will have to deal with parents and other complications but children lesson programs generally do very well. Connect with local pony clubs, offer partial leases, trailering and coaching, and you are on your way.

Pick your focus and do that.

Dog boarding can be lucrative and if it were me, I would have a dog boarding business as back up to the horse business.

Boarding sucks out a lot from owners and you get very little in return. I would allow boarding for students only, although you may have to start out with allowing boarding for all in order to build your base.

Do not own more than 2-3 horses. It is so easy to increase numbers when you have the stalls. That costs lots more.

I have other ideas - and will add more later.

[Cat_Tap]

I am in a good place now. Retired from my outside job with a good pension. Down to three boarders and three horses of my own. Could not have done it without my parents holding the mortgage, parents providing free labor, full time outside job, friends providing semi-retired show horses for lesson program and working 18 hours a day.

I didn’t do it to make money but wanted to live in the country looking after my own horses.

Now I am old, have 50 acres, indoor, outdoor, swimming pool but have lost my drive and enthusiasm. No longer showing or hunting. I was happiest working hard and struggling.

Not sure my post is of any help.

[fizzyfuzzybuzzy]

I agree Cat Tap. I like working hard and falling into bed. I like going down for night check and hearing my kids munching and snorting in the dark. I like having the knowledge to progress a rider and horse in their training.

Maybe my calling is having a dog boarding business and keeping my own horses on the same property.

Lots to think about.

[IronwoodFarm]

I would look at the dog boarding and grooming business. You have a much bigger market. I know people who actually made enough money to live on running a kennel.