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Set Up a Successful Horse Breeding Business

• April 10, 2023
• ⎯ Sandra-Cookeaimmediacom

Home » Health » Breeding » Set Up a Successful Horse Breeding Business

When Deborah Borra showed up at Cornell University in 1994 to learn about the breeding business, equine reproduction specialist Dr. Chris Schweizer and Dr. Michelle Kutzler didn’t expect (as they confessed to her later) that she’d last a year in her new venture.

Deborah, a successful real-estate agent and a professional harpist, had recently acquired Brando, an 18-year-old Swedish Warmblood stallion, and three broodmares. She was a long-time rider but had never owned a stallion or bred a mare.

The years have proved the veterinarians (whom Deborah now numbers among her best friends) wrong: Her Normandy Manor Farm has grown from nine horses on three Long Island acres to 30 horses on a 230-acre farm in western New York state. Brando succumbed to heart failure at 24, but the farm now stands Swedish stallions Kardinal and Falcon.

Deborah’s success comes from her seemingly inexhaustible energy and enthusiasm and her systematic approach to the business end of breeding. She has educated herself (and continues to) in the veterinary and technical side of equine reproduction through courses at Cornell and with frozen-semen specialist Paul Loomis at Maryland’s Hilltop Farm. And she runs her farm efficiently using knowledge acquired in her earlier business career.

Deborah’s learning curve started with artificial insemination, a topic that quickly got more complicated when she took Brando to Cornell to be collected. “We found his motility was low. These are the things I needed to learn: To increase his chances of settling his mares, I had to know about motility and concentration [the number of viable sperm in a given volume of semen] from the bottom up.”

Her Normandy Manor lab consists of a microscope, hemocytometer (for counting sperm), centrifuge (for spinning down and concentrating semen), refrigerator and incubator (for warming semen extender to the correct temperature)–“very basic,” she says. Although disposable shipping containers (which don’t require a return deposit) are now available for transported semen, she prefers to assure her product’s quality by using the more substantial Equitainer for all but local shipments.

Other important skills she needed to learn involve safe stallion-handling technique for collection. “It takes a three-person team to collect a stallion, and you need to know what you’re doing. We wear hard hats”–a protective measure she adopted from standard practice at Cornell–“because you can easily get whacked by a hoof.”

As for the details of setting up and running her farm, good business practices prevail. They include:

• A realistic business plan. “I had to sit down and figure out what I’d be investing in the project. How much grain and hay will I need in a year, what will the insurance bill be, what’s my help going to cost? I looked at a lot of farms before I found a piece of property that could do more than one thing in case this project didn’t go the way I thought it would. This is a great horse farm, but it could also be a golf course, a conference center, a spa, a bed-and-breakfast, or a group of smaller farms. And I had enough savings to keep me going during the startup.”
• Consistent organization. “Everything (tools and supplies) in each of our eight barns is hung or stored in the same place. That makes it easier for both the help and for veterinarians on a farm call, and everyone knows where to find what they need in an emergency. My repro veterinarian, Jeff Jamison, says it’s a pleasure to work at this farm because the lab is so well organized that he always knows where to find what he’s looking for. For feeding, I don’t find measurement by the ‘scoop’ accurate enough unless the same person feeds all the time. I buy paint buckets of specific sizes and label them with each horse’s name.” Feed containing medication always goes in a yellow bucket to avoid its being fed to the wrong horse.
• Good help that stays around. “Getting good help is the most difficult part of the business. I can offer on-site housing–a big plus–and I pay a decent salary. I need the kind of person who wants to learn as much as possible and says, ‘Wake me up for the foaling, even if it’s in the middle of the night.’ Teaching new employees is time- and labor-intensive, so I use what I learned in the real-estate business about motivating people to stay and work harder for you. My accomplishments as an agent were rewarded with trips to Barbados and Hawaii. When my employees have been working hard (during foaling season, for instance), I send them out for massages or give them an extra day off or certificates for a restaurant dinner.”
• Regular follow-up. “Often, I work alongside the help around the farm and watch them, just to be sure they’re following the program. I also look at every horse daily.
• Honesty. “The horse business is a tough one, and you better be honest or you won’t have a good reputation. As a breeder, you can’t succeed if you’re just focused on getting the stud fee. I like to look at people’s mares and hear what they hope to achieve before I agree to a breeding. A couple of times (for instance, when a mare owner hoped to breed a driving horse), I’ve said, ‘This is not the stallion for you,’ and referred owners to a stallion on another farm.

“Breeding can be an expensive proposition. When we sell a breeding, mare owners need enough information to give them the best chance of success,” Deborah says. “Cooled transported semen should come with a form (as ours does) telling the mare owner the motility and concentration of the sperm and how many motile sperm the shipment contains. If you contact a stallion owner who doesn’t want to answer questions about these details ahead of time, don’t go any further.

“The honest principle also applies when I sell a horse. I owe it to the animal to be up-front about its problems as well as its strengths, so that the new owner can give it the best possible care.”

So how is Deborah’s business working out, ten years after her first appearance at Cornell? “I’ve been concentrating mostly on breeding my own mares, and I have some young horses for sale now. We’re right on track, where I think we should be.”

Her broodmare band includes several “diploma mares (the highest rating conferred by the Swedish Warmblood registry) imported from Sweden. Still learning, she’s been working with reproductive specialist Dr. Dietrich Volkmann at Cornell on simple semen-freezing techniques and plans to freeze Normany Manor stallions’ semen right at the farm in the near future.

The hands-on work of any horse business is hard and unrelenting, but Deborah still sounds enthusiastic about sleeping in the barn (on a mattress in her SUV) during foaling season, as she’s done in past years after lightning knocked out the farm’s closed-circuit TV system. And she’s still proud of having learned enough to be able to cope successfully with a problem birth–a badly presented foal, or dystocia . “If I hadn’t spent all that time at Cornell, I would have lost the mare and foal.”

This article first appeared in the January 2003 issue of Practical Horseman magazine. For detailed tips from Deborah Borra on how to prepare for the birth of a foal, see her story “Get Ready for Baby” in the January 2005 issue of Practical Horseman .

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Horse Breeding Farm Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Agriculture Industry » Livestock Farming » Horse Breeding

Are you about starting a horse breeding farm? If YES, here is a complete sample horse breeding farm business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a horse breeding farm. We also took it further by analyzing and drafting a sample horse breeding farm marketing plan template backed up by actionable guerrilla marketing ideas for horse breeding farms. So let’s proceed to the business planning section .

Starting a horse breeding business is a hard business that can be quite lucrative once certain factors are in place. This business is not only hard but risky because not only do you require courage, you will also require having enough money that will sustain the business for a long time and also about horses, their genetics and what kind of breed you will want to concentrate on; this is a business that requires intense knowledge, practical experience and expertise.

You also must have great passion for the business that will enable you sustain the business for a long time especially when you might encounter frustrating periods.

It is very essential before starting this business that you seek the services of a reputable consultant who has thorough knowledge and expertise of the business you intend going into so as to offer expert advice on how best you should run your business and strategies that are likely to work for you in helping to not only achieve your intended goals and objectives but to also sustain your business for a long time to come.

The business consultant will not only look at your business concept but will also determine how much financial resources you are going to need to run your business and if it will even be worthwhile to start the business at all.

The other thing you will need is a business plan. A business plan is a document that allows investors know if you are serious about your business and if it will be a profitable venture for them and for you. Below is a sample horse breeding farm business template for you;

A Sample Horse Breeding Farm Business Plan Template

1. industry overview.

The horse industry has an economic impact of $112.1 billion, with over 9 million horses in the united states of America, and has more than 7 million Americans involved. Out of this 7 million Americans, over 4 million are horse owners, service providers, volunteers, employers and employees, while millions more participate as spectators.

The direct economic impact of the horse industry on the United States is $39 billion annually with the multiplier effect on the economy amounting to $102 billion; and according to the United States of Equestrian Federation, the median income for horse owning households was $60,000.

Out of the over 4 million people involved in the horse industry, with 2 million horse owners, only 238,000 are involved in breeding. The remaining are involved in competing, and other activities. According to facts, 1 out of every 63 American has a direct involvement with horses.

The direct jobs provided by the industry amounts to 460,000, and spending by employees and suppliers in this industry generate an additional job that directly affects 1.4 million jobs.  The tax paid by this industry to all levels of government amounts to $1.9 billion.

70% of horse owners live in communities that have a population of at most 50,000 people or less. However, it is worthy to note that every state in the United States of America has horses and that 45 out of the 50 states have at least 20,000 horses each.

This industry produces goods and services of $38.8 billion that has a direct impact amounting to $101.5 billion on the economy of the United States of America. The industry employs over 700,000 people directly with part-time and seasonal employees amounting to over 400,000.

Globally, more than 100,000 Thoroughbreds are produced annually with only a few actually being groomed into maturity. The top 10 breeding countries account for 87% of all the Thoroughbreds foaled every year.

2. Executive Summary

Gallop Horse Breeders, LLC is a leading and standard horse breeding farm that will be located in Dallas – Texas, USA and will be involved in the breeding of quality horses for our customers and the various purposes they intend to use the horses for.

We also apart from our core service, will offer other services as well in order to meet up with the various requirements by our clients whilst also gaining a huge share of the market.

Our location here in Dallas – Texas is very strategic as we are close to various race courses and other horse sports-related activity centers. This will afford us the opportunity to be able to network effectively and raise the much needed awareness for our horse breeding farm especially as we intend to raise some of our horses to participate in these races.

Our vision is to be known and referred to as the top provider of quality bred horses both foals and mature horses here in Dallas – Texas as well as all over the United States of America. To achieve this, we intend to invest in and hire the best professionals and ensure that we have also created the right environment for the horses we intend to breed as well.

We are running a business that is transparent and according to world’s best practices. This means that all our clients will be told all the truth upfront about any horse or foal they are interested in. This means that we will be very careful about the kinds of horses we breed and also how we care for them so as keep our reputation as the best horse breeding farm in the industry.

We know how important having the right publicity is to our kind of business, and so we have made plans towards that by ensuring that we will groom certain horses that will bring the right publicity for our farm. We will also partner with renowned trainers, and horse riding sports personalities as well as famous race courses so as to garner the right publicity for Gallop Horse Breeders, LLC.

We have sourced for and hired the best and competent professional staff, who do not only understand the industry thoroughly but also are committed to our vision and will work hard to ensure that we attain our desired goals and objectives.

Our staff will always undergo trainings that will not only enhance their skills but will enhance their productivity for the farm.

We intend to ensure that our employees are well paid better than similar start-ups such as ours across the entire industry. This we believe will make them put in their best into the farm. We will also ensure that we make the farm conducive enough for all our staff.

Our employees will also be trained in ensuring that all our customers receive excellent customer care, this is so that we can retain a high level of loyal clients that will help refer us to others. Finally, our owners, John and Jack McGuire have grown up in the ranch all their lives and have worked with their father in caring for and breeding horses.

Both have more than 20 years experience in this business. Also, John has over 10 years managerial experience, while Jack has several certifications in equestrian management. The two men have what it takes to ensure that the farm achieves its intents and purposes.

3. Our Products and Services

Gallop Horse Breeders, LLC has been established to breed foals and groom them to maturity in order to fulfill the needs of our various clients here in Dallas – Texas. However, we do not intend to just breed horses, we intend to ensure that we create multiple sources of income in addition to our service.

We will also offer intangible services such as consultancy services and trainings. Our intention here at Gallop Horse Breeders, LLC is to make profits as is legally permissible under the laws of the United States of America. Therefore some of the products and services that we intend offer are;

• Sale of mature horses
• Hiring horses out for racing purposes
• Hiring out horses to professional horse jockey players
• Training personal horses for individuals
• Consultancy and Advisory Services

4. Our Mission and Vision Statement

• Our vision is to be referred to as the top provider of quality bred horses both foals and mature horses all over the United States of America.
• In achieving our vision, our mission is to ensure that we seek out only quality horses that are registered, a purebred with good bloodlines. We intend to also build a solid business structure that will allow us achieve our goals and objectives more easily.

Our Business Structure

Building a business structure is very vital especially if we intend to build a standard horse breeding farm here in Dallas – Texas. Our plans are that we get it right from the beginning by going the extra mile o ensure that we get competent and hardworking professionals in all the available positions in our company.

In employing the right people to work with us in achieving our goals and objectives, we intend to source for and hire only those that are not only ready and available but also ensure that they are committed to helping us reach our intended goals and also have the necessary experience in this industry that will allow us succeed.

Our wide range of products as well as the services we intend to offer will lead us to hiring more than a conventional horse breeding farm would.

All our employees will be suitably paid and allowed to undergo continuous training that will not only see their skills enhanced but also allow them be more productive. Below therefore is the business structure we intend to build at Gallop Horse Breeders, LLC;

Chief Executive Officer

Farm Manager

Horse Trainer

Veterinary Doctor

Human Resources and Admin Manager

Sales and Marketing Team

Purchasing Manager

Truck Driver

Customer Service Executives

Security Guard

5. Job Roles and Responsibilities

• In charge of making all the right decisions that will affect the farm
• Reviews already made decisions and removes or modifies ineffective ones
• Meets with worth clients on behalf of the farm
• Identifies prize horses on behalf of the farm
• In charge of all that concerns horses on the farm
• Ensures that the standard of the farm is maintained at all periods
• In charge of grooming the horses and carrying out the necessary training
• Knows which horses to break and which needs more time
• In charge of checking the medical conditions of the foals that are brought to the farm
• Carries out medical check-up from time to time on all the horses at the farm
• Treat sick horses and refer complicated cases to a veterinary clinic
• In charge of sourcing for the right employees on behalf of the farm
• Drafts and implements policies that would affect the employees and their welfare in the workplace
• Ensures that all administrative functions work well and that paperwork is effectively handled on behalf of the farm
• Carries out direct marketing and sales on behalf of the farm
• Drafts marketing strategies and policies in line with the company’s core values
• Researches new markets in order to gain new clients for Gallop Horse Breeders, LLC
• In charge of sourcing for trusted vendors and suppliers on behalf of the farm
• Ensures that the right breed are purchased on behalf of the farm according to company’s policies
• Prepares contract and purchase documents and reviews same on behalf of the farm as at when due
• Prepares all the accounting information and statements on behalf of the farm
• Ensures that all tax documents are correctly prepared and submitted to the tax authorities as at when due
• Ensures that the farm stays true to its re-payment plan so as to be free from debts
• Handles the transportation of foals and horses to and from the farm
• Ensure that the horses arrive at their destination on time
• Carries out light maintenance on the truck as at when due
• In charge of attending to clients physically, online and via phone calls and ensuring that they get the right information at all times
• Is updated about industry trends as well as company policies in order to give customers the right information at all times
• Keeps an accurate customer database on behalf of Gallop Horse Breeders Farm
• Patrols the property and ensures that predators and intruders have not entered the farm
• Checks the perimeter of the farm and determine what security measures will suit the farm
• Carries out any other duty as might be determined by the farm manager
• Ensure that the premises is kept clean at all times and that cleaning supplies are always in stock
• Ensures that the horses stalls are cleaned as at when due with the right supplies
• Carry out any other duties as might be determined by the farm manager

6. SWOT Analysis

In determining if we are well suited to start and run this business, we intend to hire reputable business consultants to help look through our business concept and determine if it would be worthwhile for us to start this business, run and also compete favorably against other competitors here in Dallas – Texas as well as round the United States of America.

Due to this, the business consultant took a strict look at our business and took stock at our strengths, weaknesses, opportunities and threats that we were likely to be exposed to here in Dallas – Texas as well as round the United States of America. Below is a SWOT analysis that was conducted on behalf of Gallop Horse Breeders, LLC;

There are several strengths that are available to us and they are the fact that we are careful about the sort of horses we are breeding here at Gallop Horse Breeders, LLC. Also, we sourced for and hired only competent and professional employees who understand the business and are willing to work to ensure that we attain our goals and objectives.

We are also strategically located and are easily accessible to all our customers. Finally, our owners, Jack and John McGuire have the necessary experience to ensure that we attain our goals and objectives.

There are several weaknesses that are likely to crop up when we start or run this business. Some of our weaknesses are that we are not starting off with a huge capital as we would have liked, this has therefore affected certain aspects of our business, such as marketing and not getting the amount of employees that would run all the various services that we intend to offer.

• Opportunities

There are several opportunities that exist for us in this industry as there are more activities that require the use of horses, thereby ensuring that there will always be demand for horses. Also, opportunities are available at sporting events, fairs and sporting activities to allow us network with potential clients.

There are certain threats that we expect to be exposed to while running our horse breeding farm here in Dallas – Texas. First, the fact that we are located here in Texas means that we would be facing a whole lot of competition from already established horse breeding farms as well as start-ups.

Also, our business is likely to be affected by a downturn of the economy, which will cause customers to spend less. We however have certain strategies in place to combat whatever threats we are likely to face.

7. MARKET ANALYSIS

• Market Trends

Horses are used for a whole lot of activities and according to a study, these horses are used for a number of activities such as racing, showing, competition, breeding, sport, work, recreation and a whole lots of other activities. These other activities can be referred to as farm and ranch work, polo, carriage horses, police work, and certain informal competitions.

This therefore shows that the industry is highly diverse as it combines rural activities of breeding , training, riding and maintaining of these horses to the urban activities of horse shows, racetracks, public sales as well as other such activities.

Even though there is a huge misconception about horses and the industry is mainly for wealthy people, several studies have dispelled have dispelled this fact as statistics show that 34% of those who owned horses have a household income that is less than $50,000, 46% horse owners have a household income of between $25,000 to $75,000, while only 28% have an annual income of over $100,000.

The trend as regards horses is that it is best for them to be outdoors; this is why starting a horse breeding business is not only hard and capital intensive but also risky as well. Horses cannot be kept in stalls always, and so need to be out for training and for other purposes as well.

8. Our Target Market

There is a wide range of customers available to us here at Gallop Horse Breeders, LLC. Our location here in Dallas – Texas, is very strategic and will therefore ensure that our target market will be easily reached.

We have conducted a thorough market research that will enable us have an idea of what we should expect from our target market so as to allow us draft the right strategies. From our research, it is evident that we are in business to cater to the following people;

• Race courses
• Horse sports men and women
• Other horse breeding farms

Our competitive advantage

Our intention of starting a business is to ensure that we produce and breed quality horses for use by our different customers for various purposes and be the preferred horse breeding farms for all our customers here in Dallas – Texas and all over the United States of America.

We intend to offer various services that will enable us gain a huge share of the target market at the expense of our competitors. Another competitive advantage is that our facility is of a high standard that will ensure that the qualities of our services are high.

We intend to employ competent and professional employees that have vast experience and are also attuned to our policies to our management team and also ensure that our policies are well implemented. We also intend to source for and employ only the best employees that are ready and committed to ensuring that we achieve our intended goals and objectives. All our employees have an excellent customer service culture.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Gallop Horse Breeders, LLC has been established with the aim of maximizing profit in the equestrienne and horse industry here in Dallas – Texas with the intention of providing the intended products and services to our wide range of customers. Gallop Horse Breeders, LLC will therefore generate income via the following products and services;

10. Sales Forecast

One certain fact is that there will always be use for horses either for sports, recreation or some other purposes, which means there will always be a demand.

Our location in Dallas – Texas means we are strategically positioned in order to be able to take on the available market locally as well as nationally all over the United States o America. Our strategic positioning also means that we will generate enough revenue before the end of our loan repayment year.

Our act comes from the critical evaluation that we have conducted on the horse breeding market here in Dallas as well as all over the United States of America. Our analysis has led us to come up with a sales forecast after analyzing our chances in the industry.

Our analysis was based on certain facts and assumptions that were gathered from similar start-ups such as ours and located here in Dallas – Texas. Below therefore is the sales projection for Gallop Horse Breeders, LLC based on certain assumptions and facts;

• First Fiscal Year-: $250,000
• Second Fiscal Year-: $350,000
• Third Fiscal Year-: $700,000

N.B : The above low sales projections come from the fact that we won’t have bred horses to a standard where they will be sold but that our revenue would come from other sources of income that we would have created.

Also, the sales projections are based on the several assumptions such as there won’t be any major economic downturn and that there would not be an arrival of any major competitor within our location during the period of these sales projections.

It should be noted that should there be any changes in the above factors, it would affect the sales projections, and might lead to an increase or decrease in figures.

• Marketing Strategy and Sales Strategy

There are several factors that are important when it comes to marketing a horse breeding farm. Even though marketing is very important for every business, it is more important for a horse breeding farm business because lack of marketing the business will lead to people not being aware of the business and invariably loss to the business.

However, in order to have the best strategies or the business, it is best to conduct a thorough market survey that will allow one know what the target market requires and how best to penetrate the market and gain a huge share of customers as well as favorably compete against other competitors in the same location.

In order to perform a credible market survey, information and data has to be utilized from not only similar start-ups but also already established horse breeding arms in and around the locality.

For this purpose, we are seeking the services of a reputable marketing consultant who has a thorough understanding of the market to help us develop marketing strategies that will help our business gain a large share of the available market here in Dallas – Texas and throughout the United States of America.

We also have empowered our marketing team to collaborate with the marketing consultant and ensure that the strategies drafted are in line with our core values and principles as a business.

We understand the huge role technology has come to play in today’s world especially for businesses such as ours. We would make massive use of the internet to promote and raise awareness about our horse breeding farm. We will promote certain promising foals and bloodlines so as to stimulate the interest of existing and potential customers in our horse breeding farm.

Finally, below are some of the strategies we would adopt in order to market our products and services at Gallop Horse Breeders, LLC;

• Throw a grand opening party when launching our business in order to stimulate interest and raise awareness for Gallop Horse Breeders, LLC
• Introduce our horse breeding farm formally by sending letters and brochures about our farm to famous racecourses, horse sports men and women and also other stakeholders in the industry
• Attend fairs, auctions and events in order to mingle with other horse owners while also marketing our horse breeding farm
• Advertise Gallop Horse Breeders, LLC in local based newspapers, and on local radio and television stations
• Engage in direct marketing and sales
• Ensure that our horse breeding farm in listed on offline and online directories

11. Publicity and Advertising Strategy

Having the right publicity is very vital for our business because as a horse breeding business, we need to be visible at all times if we intend to not only generate revenue that would boost our bottom line but also be able to favorably compete against other competitors whilst promoting Gallop Horse Breeders, LLC.

In order to ensure that we draft the right publicity strategies, we intend to hire the services of a brand consultant that understands the horse market and is experienced enough in promoting brands of our kind to our target market.

We intend to build on several publicity strategies that will not only promote our brand beyond the borders of Dallas – Teas but also positively communicate Gallop Horse Breeders, LLC round the whole United States of America. Some of the platforms we intend adopting to effectively promote Gallop Horse Breeders, LLC are;

• Effectively use our social media platforms to actively raise awareness and stimulate interest about our farm. We will use platforms such as Facebook, LinkedIn, Twitter, Instagram and other popular platforms to engage our audience
• Participate in and sponsor certain social events, sporting activities and fairs here in Dallas – Texas and nearby cities as well
• Install bill boards in strategic locations all around Dallas – Texas
• Distribute handbills and fliers about our farm in target areas
• Place adverts in local newspapers, as well as on radio and television stations
• Ensure that our truck is well emblazoned with our logo and that our staff wear customized tee-shirts especially during certain functions and events

12. Our Pricing Strategy

In setting a price for our horses, it would depend on a whole lot of factors such as the quality of the breed, the bloodline and what purpose the horse will be used for. We are aware that our prices will also vary depending on if the customer intends to buy or hire our horses. We would create a strategy that would allow for a blanket pricing depending on what package our clients are looking for.

However, due to the fact that we are just starting out in this business and in order to attract more customers to our business, we intend to for the first few months when our horses are mature give out discounts and other incentives to our various customers.

Because we would be offering other services and products during this period, we would like to state that even though we would run on a low profit margin during the few months that we would be offering this discount, but we would not run at a loss at any time.

• Payment Options

Due to the fact that we would be offering several services here at Gallop Horse Breeders, LLC; we intend to ensure that we give our various customers the options of having different payment policies that will suit them. The payment options that we will therefore make available to all our clients include;

• Cash payment
• Payment via check
• Payment via bank draft
• Payment via credit card
• Payment via online payment portal

In view of the above, our payment options were chosen after careful deliberations and will work conveniently for us and our customers without any hitches.

13. Startup Expenditure (Budget)

Starting up and running a standard horse breeding farm business can be very capital intensive due to the several things that the bulk of the capital will be going into spending. For a start, one would need to spend most of the capital on purchasing foals, paying salaries as well as utility bills.

Also, much of the capital will go into building certain facilities, purchasing a land (if the entrepreneur doesn’t have one) as well purchasing a truck that will be used. The key areas where we intend to spend the bulk of our start-up capital on are;

• Total fee for registering Gallop Horse Breeders in the United State of America – $750
• Obtaining certifications, licenses and zonal permits as well as accounting software – $1,250
• Cost of hiring a business consultant here in Dallas – Texas – $3,000
• Insurance coverage (general liability, property insurance , workers’ compensation) – $5,000
• Cost of building several facilities (stalls, barns, paddocks, offices) for use at the farm – $30,000
• Marketing promotion expenses (general promotion expenses and grand opening promotion expenses) – $30,000
• Operational cost for the first three months (employees’ salaries, payment of utility bills) – $100,000
• Start-up expenses and purchases and medical expenses – $20,000
• Other start-up expenses (stationeries, phones, computers, business cards, signage, tools and equipment) – $5,000
• Cost of launching a website – $1,000
• Cost of throwing a grand opening party – $5,000
• Miscellaneous – $9,000

From the above breakdown, we would need the total amount of $200,000 to be able to run a standard horse breeding farm here in Dallas – Texas.

It should however be noted that the bulk of the start-up capital will be used to build several facilities on our land, pay employees and utility bills for a certain period of time and also purchase the necessary tools and equipment that will make sure we are able attain our desired goals and objectives.

Generating Funding / Startup Capital for Gallops Horse Breeders Business

Gallop Horse Breeders, LLC is owned and operated by two brothers, Jack and John McGuire. The land on which they intend to use for this business has been in the family for decades and due to this, they do not intend to bring in any eternal investors to partner with them on starting up their horse breeding farm.

This decision has limited the sources where they intend to generate capital from. Therefore, the major areas where we intend to generate our start-up capital from are;

• Generate part of our start-up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from commercial bank

N.B : From the above three sources, we were able to generate the sum of $30,000 from our joint personal savings. We got the sum of $20,000 from our family members and friends.

In order to get the full amount necessary for a successful start-up, we approached our commercial bank for the sum of $150,000 to be repaid at an interest of 4% in 7 years. All the approving documents have been signed by our bank and we have been told that the money would be credited to our account by the end of the week.

14. Sustainability and Expansion Strategy

Because we are in business to succeed, we have deployed strategies in place that will ensure that our plans are geared towards ensuring that the business remains for a long time and grows at a planned pace. In order to ensure that we suitably sustain our business, we intend to hire competent employees, ensure that we offer excellent services to our various customers and also ensuring that we have a solid reinvestment plan in our business.

Building a solid business structure is very important to us here at Gallop Horse Breeders, LLC. Due to this, we intend to ensure that we source for and hire competent employees that do not only have the necessary knowledge and expertise but are also attuned to our core principles as a business and are committed to ensuring that we attain our desired goals and objectives.

All our employees are also well trained in not handling the horses but also ensuring that they positively project our business and communicate our values at all times. We also intend to ensure that our employees work in a conducive environment that is easily accessible.

Offering excellent services is a must for us as a business as we take great care in selecting the breeds we mate and then groom for recreation or sports purposes. Our purchasing manager as well as our farm manager are very experienced in identifying and knowing how well to ensure that our farm breeds only the best, thereby bringing customers for us from far and near.

Finally, we intend to ensure that 50% of the profit made in the farm is reinvested back into the farm; this is so that the business will be able to pay for itself and not have to continually seek for loans from external sources. We believe that applying these different measures will allow us sustain and also expand our horse breeding business from Teas to all over the United States of America.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
• Purchase of trucks: Completed

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How to Start a Horse Breeding Farm in 14 Steps (In-Depth Guide)

Updated:   February 22, 2024

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The horse breeding industry in the United States is a multibillion-dollar market. As the call for horses in racing, leisure riding, and hobby farming grows, so does the need for high-quality horse breeding. The horse market brings in $300 billion annually. If you’re considering starting a breeding farm, now is the time to start.

Selective breeding allows you to leave a genetic legacy while preserving beloved bloodlines. Furthermore, the process facilitates meaningful human-animal bonds. Though intensive in terms of time, labor, and upfront costs, horse breeding puts you at the intersection of business, science, and art.

This guide will walk you through how to start a horse breeding farm. Topics include market research, competitive analysis, registering an EIN, forming a legal business entity, proper accounting practices, branding, marketing, and more.

1. Conduct Horse Breeding Farm Market Research

Thorough market research is critical when assessing the viability of a horse breeding enterprise. You must objectively analyze your target segment and competitive landscape before moving forward. This data will empower you to carve out a unique breeding niche while meeting customer demand.

Some details you’ll learn through market research for your horse breeding business include:

• The majority of horse owners use them for recreation, showing, and racing rather than breeding.
• The horse industry brings in roughly $122 billion to the U.S. each year.
• The horse industry accounts for 1.74 million jobs.
• When assessing market viability for a start-up horse breeding farm, also explore state-specific industry data.
• Thoroughbreds, Quarter Horses, and Arabians dominate the registration volume.
• Connecting with local and regional breed associations will help gauge participation levels in equine breeders.

By thoroughly analyzing all facets of the current breeding market, you gain the vital context needed to determine if your prospective venture idea warrants moving forward. The most successful breeders intimately understand buyer needs and industry trends before long-term launch.

2. Analyze the Competition

Carefully evaluating competing horse breeders is imperative when launching any new business, including a horse breeding farm. This gives you a keen insight into existing market dynamics and opportunities to differentiate. Employ these key strategies to analyze competitor breeding operations in your target region.

Google relevant keyword combinations like “Thoroughbred horse farm Ohio” and browse directory results. Expand searches to incorporate leading farm review sites like Yelp. Compile a comprehensive list of established breeding farms in your geography, including website URLs and social media handles.

Systematically visit each competitor’s online properties and social channels. Assess their positioning, specialties, bloodstock, facilities, and branding. Download past sales catalogs to analyze prices realized and get a sense of each operation’s cachet with buyers.

Set up Google News alerts and follow key players on social media to stay abreast of new offerings, media coverage, industry initiatives, and more. These real-time insights can reveal openings to outpace rivals.

Consider scheduling facility tours of top operations as well to gain first-hand perspective. Informational interviews with management can uncover helpful context on business models, economics, and lessons learned too.

By dedicating time to know your competitors intimately, you lay the groundwork to breed and market horses that stand out from the herd. Match strengths while exploiting weaknesses to boot. A thorough competitive analysis will strengthen your horse breeding business plan.

3. Costs to Start a Horse Breeding Farm Business

Launching a profitable farm for breeding horses requires a serious investment. From securing land and facilities to establishing your initial stock to breed horses, expenses add up quickly. Maintaining operations long-term also requires significant ongoing investment.

Startup Costs

• Rural farmland averages approximately $3,000 per acre depending on your region and proximity to metropolitan hubs.
• Even a modest 20-acre parcel can set you back $60,000 or more before infrastructure development.
• Pole barns typically run around $25 per square foot depending on specifications.
• For a 2,500-square-foot barn with 10 foaling stalls, you may invest $62,500 or more.
• Fencing and property improvements like roads, water lines, and land clearing add further expenses as well.
• High-quality broodmares can command anywhere from $5,000 to $75,000+ per head depending on pedigree, performance history, age, and breed demand.
• Expect to invest at least $100,000 to begin with five breed-appropriate mares for your program.
• Stud fees often start around $1,000 but elite stallions can charge from $5,000 to over $100,000 per breeding.
• If purchasing your stallion outright, quality prospects range from $20,000 to well over $1 million for renowned bloodstock.

Ongoing Costs

Most horse breeders will spend further money on ongoing costs to keep a successful horse breeding business afloat. Some ongoing costs involved in horse farming include:

• Equine semen collection and processing averages around $350 per stallion.
• Fertility exams and reproductive treatments like hormone therapies can run $500 per mare or more as needed.
• Animal feed , supplements, bedding, veterinary and farrier care, and equipment/facilities maintenance are fixed monthly expenditures as well.
• Depending on your herd’s size and needs, plan on at least $400 in upkeep per horse.

While intensive, starting and running a profitable horse breeding farm is feasible with comprehensive planning and capitalization. Target consistent revenue from stud fees, foal sales, and breeding stock turnover to offset your considerable but necessary investments over time. Commit to financial solvency and growth in equal measure.

4. Form a Legal Business Entity

When launching a new horse breeding enterprise, one of the first legal steps is formally establishing your business structure. The entity type you choose dictates important factors like personal liability, taxation rules, and expansion capabilities.

Sole Proprietorship

Sole proprietorships represent the simplest and most common options for new single-owner businesses. You retain full control and avoid complex filing requirements. However, you also assume unlimited personal liability for debts and legal claims tied to the business. For breeding farms, this jeopardizes your finances should legal issues arise.

Partnership

Forming a general or limited partnership allows you to share ownership duties and liability exposure with other partners. You benefit from combined knowledge and investment as well. Vague partnership roles and the need for unanimous decision-making can prove challenging. Disagreements may force dissolution.

Limited Liability Company (LLC)

Limited liability companies (LLCs) provide the best of all worlds for breeding farms. As the name suggests, LLC status shields your assets from farm-related liabilities. It limits financial risk if a horse causes property damages or injuries for example. LLCs also enjoy pass-through federal tax treatment without requiring formal processes like corporations.

Corporation

Establishing as a formal corporation does grant valuable credibility and financing options. However, extensive record-keeping requirements often prove overly burdensome for smaller breeding enterprises. Double taxation of profits and inflexible ownership structures present further challenges.

5. Register Your Business For Taxes

With your LLC established, obtaining an Employer Identification Number (EIN) represents the next critical legal step. The EIN serves as your farm’s Social Security Number for tax purposes. This unique nine-digit number identifies your breeding business to the IRS for key filings like federal tax returns.

Thankfully securing an EIN is free and fast directly through the IRS website . To apply, head to the IRS EIN Assistant and select “View Additional Types” then “Farm” to start the simplified application. You will need your LLC’s legal name, address, and ownership details handy to complete the 10-minute form.

The Assistant walks you through a six-step process covering basics like responsible parties and business activities. For ownership specifics, choose options reflecting your LLC’s managing members. Provide your valid SSN when prompted.

Double-check all entries reflect the breeding farm’s structures and ownership accurately before submitting. Once received, you can leverage your new EIN across all federal and state tax documents moving forward. Display it prominently on letterhead, contracts, and invoices so clients can reference it as well.

In addition to your federal EIN, do not overlook requisite state-level tax obligations too. For example, those operating horse breeding businesses in Kentucky must register for a Farms Tax Number via the Kentucky Department of Revenue portal. This allows you to remit appropriate sales taxes on transactions with in-state buyers.

Confirm filing specifics based on the US state housing your breeding farm. Then complete any registrations or applications needed to maintain compliance as you scale up. Keep all tax ID numbers and related documentation in a secure location for easy access year-round.

6. Setup Your Accounting

With your equine business launched, establishing organized, accurate financial practices is fundamental. Complex breeding operations with high asset values and expenditures necessitate diligent tracking to quantify profitability and minimize tax liability.

Accounting Software

As your horse enterprise scales, manual bookkeeping proves overly burdensome. Acclaimed platforms like QuickBooks streamline the process through automated categorization, invoicing, and reconciliation. The Farming & Ranching tier even tailors charts of accounts, inventory options, and reports to agricultural industry needs.

Hire an Accountant

The expertise of a dedicated accountant provides further value. Enlisting services specializing in farm finances helps ensure full compliance with state and federal tax codes as regulations evolve. Year-round bookkeeping assistance, payroll administration, and representation during tax audits may also be offered.

Open a Business Bank Account

Remember to always keep business finances wholly separate from personal for simplified reporting. Open a dedicated small business checking account under your farm’s legal name and EIN to differentiate expenditures.

Apply for a Business Credit Card

Apply for a small business credit card in your LLC’s name to earn rewards on all farm purchases while building a credit history. Lenders review factors like your personal score, time in business, and annual revenue when approving limits.

7. Obtain Licenses and Permits

With your LLC formed and paperwork filed, properly licensing your breeding business protects you from penalties while adding credibility with clients. Find federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

At a minimum, your property requires cleared zoning as an agricultural enterprise with horseboarding infrastructure. Permit approval depends on surrounding community rules regarding acceptable noise levels, odor control measures, waste management practices, traffic impacts, and more issues relevant to larger breeding farms.

Register the physical address with federal agencies USDA and EPA to legally handle pharmaceuticals and develop emergency risk plans for accidents involving hazardous waste or fuels maintained on-site. The EPA also dictates manure management rules for runoff which can incur fines if violated.

In terms of equines, all horses must exhibit current Coggins testing indicating they are Equine Infectious Anemia free. Review vaccination records as well to ensure coverage for Tetanus, Eastern & Western Encephalomyelitis, West Nile Virus, and Rabies at minimum.

Transporting your horses over state lines requires USDA-approved Vehicle Operator Permits confirming driver training to handle animals safely in transit. Similarly, provide staff with Employee Training Certifications in Bloodborne Pathogens and Hazard Communication per OSHA standards.

8. Get Business Insurance

Insuring your equine assets and operations safeguards your breeding business against financial ruin should disasters strike. Though coverage adds overhead, imperiling your facility, stock, and livelihood for mere savings proves dangerously penny-wise and pound-foolish.

First, farm owners’ or ranch insurance covers infrastructure and possessions across your property itself. Should a barn collapse under snow loads, lightning spark a blaze, or flooding from extreme weather damage fencing, comprehensive policies pay to restore your structures and replace destroyed contents like saddles, tractors, and hay stores up to stated limits.

Second, horse mortalities spike from outbreaks of equine herpesvirus, Eastern and Western encephalomyelitis, and other Communicable diseases in densely populated barns. Highly-valued bloodstock and breeding stallions warrant mortality coverage through specialized underwriters like Equine Mortality.

Third and most damaging, consider the liability risks associated with working daily with half-ton animals with unpredictable temperaments. Horse kicks and bites lead to around 90 emergency room visits daily.

Should a breeding stallion or mare injure a handler, farm guest, or driver passing crashed fencing due to negligence, seven-figure lawsuits are not unheard of. General liability coverage with added equine-specific endorsements pays legal expenses and court judgments awarded under many circumstances.

Higher deductibles help offset base costs if cash flow proves tight initially. Pay premiums on time to prevent policy cancellation or risk left footing bills fully out-of-pocket for the next preventable tragedy. Ultimately fraud charges pale in comparison to total economic devastation from uncovered accidents or natural disasters so insure yourself in full.

9. Create an Office Space

As your breeding enterprise grows, designating a dedicated office area streamlines administrative tasks critical to scaling up successfully. When juggling breeding schedules, client communications, budgeting, licensing paperwork, and more, working near constantly vocal and rambunctious horses proves challenging.

Home Office

Converting an extra bedroom into a home office provides privacy and convenience if operating solo or with family help. Expect costs under $2,000 to add a desk, file cabinet, phone line, and basic tech like a printer/scanner and accounting software. Deduct a percentage of utilities and mortgage fees come tax season.

Coworking Office

As staff expands, moving into a dedicated workspace offers greater professionalism when meeting mare or stallion owners seeking breedings. Coworking spaces like WeWork provide turnkey offices with reception staff, WiFi, conference rooms to entertain investors, kitchen areas, and networking opportunities with other entrepreneurs.

On-Site Office

Breeding farms may want to set up an office on-site at the farm. This requires no additional leases or contracts and lets you keep tabs on your horse business without missing out on administrative duties.

10. Source Your Equipment

Launching a profitable breeding operation hinges on securing the right infrastructure and gear to support your horse herd. From fencing to feeding systems, assess new, used, and rental options across these key categories.

New turnkey barn set-ups allow ultimate customization but strain budgets. B & D Builders will develop luxury barns. Steel Structures America supplies custom barns, sheds, and garages. Evaluate added considerations like climate control, foaling stalls, wash bays, tack rooms, feed storage, and trailers.

For major discounts, check out local buy and sell groups like Craigslist search alerts for used equipment. Signage, security cameras, grooming kits, portable panels, and medications often surface at 50%+ off retail. Vet any major buys like tractors to confirm hours and maintenance records.

When expanding your farm, also consider leasing additional pasture acreage from neighbors rather than purchasing. This allows maximizing grazing efficiency seasonally when climate impacts change over time. Seek multi-year terms and facility access for just $10-$20 monthly per leased acre on average.

11. Establish Your Brand Assets

Beyond quality bloodstock, differentiating your farm through professional branding attracts top clientele and industry referrals. Invest time perfecting visual assets, communications channels, and an online presence to stand out among regional competitors.

Get a Business Phone Number

Start by acquiring a unique business phone line using providers like RingCentral . Choose an easy-to-remember vanity number featuring your farm’s name and location to boost recall. Automate attendants to route calls. Port the number across mobile devices for flexibility in answering inquiries.

Design a Logo

Conceptualize your farm logo and style guide conveying pedigree, care, and distinction. Graphic design firms develop sophisticated insignia from $500, but user-friendly DIY sites like Looka generate dozens of polished concepts for any budget.

Print Business Cards

Print your logo prominently across all assets including business cards, stationery, signage, and brochures. Sites like Vistaprint ship orders fast with frequent sales around major holidays. Quality cards convey attention to detail when providing contact info to prospective breeding clients at conferences or tradeshows.

Register a Domain Name

Register an available .com domain containing your name via registrars like Namecheap for $12 annually. Choose a name that reflects your farm’s purpose and brand image.

Design a Website

Build a professional responsive website through user-friendly Wix site building tools or outsource fully to skilled web developers found on Fiverr starting around $300 featuring stunning visuals, integrated booking functionality, and SEO best practices to drive traffic.

12. Join Associations and Groups

Expanding your professional community and trading insights with fellow breeders fuels continuous improvement. Actively engage these vital entities to ensure your finger stays on the pulse of industry advancements and opportunities in your region.

Local Associations

The American Horse Council’s State Horse Council Directory indexes breed and discipline associations facilitating invaluable networking both locally and nationally. Massachusetts Horsemen’s Council members meet regularly to discuss legislative initiatives, zoning challenges, disaster preparedness, and more pressing to operators statewide.

Local Meetups

Meetup provides an incredible free resource to discover specialized groups tied to geographic areas and particular equine interests. For instance, the Tennessee Hunter Jumpers Meetup coordinates arena rentals, trail rides, and clinic gatherings by using data to enhance show-ring performance.

Facebook Groups

Facebook groups like the Equine Breeders and Owners group connect enthusiasts globally to exchange guidance on everything from nutritional questions to showmanship techniques. Utilize built-in search to input problems and absorb crowdsourced solutions from seasoned veterans.

13. How to Market a Horse Breeding Farm Business

While word-of-mouth referrals from satisfied mare or stallion owners offer the most valuable marketing, supplement with targeted promotions to keep your farm top of mind in the community. Implement a marketing mix leveraging digital visibility and community outreach to sustain a robust client pipeline.

Referral Marketing

Positive referrals hinge on over-delivering your commitment to clients at every step of the breeding process. Notify owners immediately when conception occurs and send ultrasound images confirming viable pregnancies.

Digital Marketing

Modernize traditional word-of-mouth by spearheading your online presence by:

• Launching Google and Facebook ads touting your distinct bloodlines and conception rates to target regional potential breeders.
• Sharing healthy foaling footage and winning show ring performances from your progeny in YouTube videos.
• Bidding on associated keywords like “best Kentucky trotters.”
• Starting an educational blog and email newsletter covering topics like herd nutrition, barn maintenance, reproductive technologies, and aftercare.
• Featuring a “Breeder of the Month” client profile.
• Repurposing posts across social media and distributing them at conferences.

Traditional Marketing

Traditional marketing tactics offer tangible advertising for memorable results. Some ways to implement traditional marketing for your breeding program include:

• Distribute flyers at all regional tack and feed stores
• Take a booth at the county fair to increase local familiarity
• Advertise your best breeding stallions in horse magazines
• Donate services as a sponsor for a community fun show
• Host open barn events for facilities tours and foal viewings.

This 360-degree outreach captures clients searching across every channel, cementing your leadership as the regional breeding partner delivering results.

14. Focus on the Customer

In the breeding business, your customers entrust you with their beloved four-legged family members to bring new life into the world. Attentive customer care ensures satisfied owners who ultimately drive referrals critical for continued success.

Schedule regular check-ins to update on the mare’s health, feeding adjustments, exercise regimen, and any changes since the last appointment. Send ultrasound images revealing the growing foal’s development. Never hesitate to take emergency calls, even late at night.

Once the tense delivery concludes successfully, immediately notify the anxious owners. Send photos and video of the pair bonding within hours of birth. Then make yourself available for visits anytime to share milestones like first steps and initial grazing.

Exceeding expectations through highly personalized customer service earns immense goodwill and word-of-mouth marketing. Ecstatic breeders enthusiastically endorse your program to fellow barn members. They bring multiple mares annually to tap your obvious knack for nourishing viable pregnancies.

Such organic referrals from vested clients sustain operations for generations if stewarded properly from day one. So focus first on nurturing your customer relationships as carefully as the animals entrusted into your capable hands.

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March 8, 2024

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Profitable Horse Farming Business: 10 Essential Elements of a Successful Horse Breeding Business Plan

Table of contents, what is horse farming or horse breeding, history of horse farming, how to start a horse farming business, living conditions, feed, care, and life of horses in horse farming, assessing the feasibility of a horse breeding business, choosing the right location for a horse farm, designing a horse farm, choosing the right breed and acquiring horses, materials and equipment required for horse breeding business, managing horse health and nutrition, purchasing the horses for profitable business, tips for starting a horse breeding program, developing a marketing and sales plan, creating a financial plan for the horse breeding business.

Horse farming can be profitable, but success requires a good business plan. A well-crafted business plan may help you identify and minimize risks, attract investors, and stay on track to reach your goals, whether you’re beginning a new horse breeding company or wanting to expand an existing one.

This blog post will review the ten most important components of a successful horse breeding business plan. We’ll cover all you need to know to construct a complete and effective strategy for your horse farming business, from market analysis to financial predictions.

Horse Breeding Business Plan

Horse farming, also known as horse breeding, is a complicated and varied process that entails breeding, producing, and caring for horses for different reasons. Horses have been a vital component of human society, from equestrian activities like racing and jumping to work in agriculture, like plowing fields and transportation. However, successful horse farming necessitates more than just a passion for horses. It necessitates a thorough understanding of horse biology, genetics, nutrition, and healthcare, as well as knowledge of marketing, business management, and risk management. 

The history of horse farming is shrouded in mystery, with the domestication of horses dating back over seven thousand years ago in southern Russia by the Aryans. However, many details surrounding the origins and spread of horse farming remain unknown. The first known book on the history of horses is the Shalihotra, written by a sage of the same name before the time of the Mahabharata period. Even today, in India, horse doctors are called “Shalihotri” in honor of this ancient tradition.

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Starting a horse farming business requires a deep understanding of horse breeding, care, management, finance, marketing, and risk mitigation expertise. To ensure success, one must carefully consider factors such as breed selection, facilities, and equipment and develop a comprehensive business plan.

Horses are noble animals and require proper care and attention for a healthy and long life. To start horse farming, you need stables and adequate shelter, including an outdoor shelter, pasture, a room for feed storage, a separate room for medicines, and a special ridge. The horse closet must be clean and ventilated with wood sawdust bedding, and each horse must have at least 170 square feet of space.

Horses need a nutritious diet, including grass, hay, sugar beet, pellet mix, oats, millet, chopped hay, and vitamins. The amount of food varies depending on the horse’s age, weight, and health condition. Older and injured horses require more vitamins, while young horses need fresh, dry hay. The total diet should not exceed 0.5 percent nitrates. Horse owners must ensure their horses are healthy. The veterinarian member should always be available, and horse owners must be able to care for their horses under guidance.

The stables must have dry and clean cupboards to store medical aid kits and medicines. Regular check-ups are necessary, and horses must be vaccinated against diseases. The life span of horses is 25 to 30 years, and an average horse is ready to breed over five to six years. Horses should only be ridden once their bones and skeleton fully develop, usually by 1.5 years old. Flies and insects often trouble horses, and wearing fly masks can help protect their eyes.

• Conduct market research to determine the demand for horse breeding services.
• Analyze competition and identify unique selling points for the business.
• Consider the location and availability of land for stables and pastures.
• Determine necessary equipment and facilities, such as breeding and foaling stalls.
• Assess the business’s financial feasibility, including startup costs and potential revenue streams.
• Develop a business plan outlining goals, strategies, and timelines.
• Seek advice from industry professionals, such as veterinarians and experienced breeders.
• Consider the time commitment required for successful horse breeding and management.

Choosing the right location for a horse breeding farm is needed for a successful business plan. Factors to consider include climate, soil quality, access to veterinary care, and proximity to markets for sales and supplies.

• Talk to locals in farming communities about available land or farms for sale, and attend community events to network.
• Consider hiring a real estate agent with experience in agricultural land sales if you need help finding suitable land.
• Choose large enough land to accommodate your horses and their needs, including running space and separate areas for stallions and mares.
• Look for land with existing buildings, such as a barn or outdoor shed, or the potential to build new ones.
• Check zoning regulations before buying land to ensure it can legally be used for horse breeding.
• Ensure the land has fertile soil with plenty of grass, hay, and alfalfa to help reduce feed expenses.
• Ensure a sufficient water supply, such as creeks or ponds, is available, but be aware of potential algae growth and drainage problems.
• Test the water supply and soil quality before buying land, and rotate pastures to allow for recovery and fresh grazing.

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Designing a horse farm for a horse-breeding business plan involves careful consideration of the safety and well-being of the horses, as well as the necessary infrastructure and facilities. 

• Prepare the pasture by removing sharp objects, barbed wire, rocks, and poisonous plants that could hurt the horses.
• Check for holes in the pasture and eliminate the cause of the spots, such as moles or gophers, to prevent horse injury.
• Identify all plants in the pasture to ensure they are not toxic and protect them from chewing.
• Build or prepare existing buildings for the horses, including a barn, water supply, outdoor sheds, and other necessities.
• Orient the shelter to make the most of summer breezes and protect from prevailing cold winds.
• Put up strong and secure fencing, such as wooden or metal, and avoid hog or barbed wire fencing.
• Use electric fencing if properly earthed and made with quality wire, but be cautious with wild or frisky horses.
• For racing, breeds like Thoroughbreds and Standardbreds are popular for their speed and stamina. Showjumping and dressage require horses with athleticism, balance, and grace, and Warmblood breeds and sport horse crosses are often chosen. 
• Western riding activities, such as reining and barrel racing, need horses with agility, quickness, and a strong work ethic, such as Quarter Horses, Appaloosas, and Paint Horses. 
• Recreational riding calls for versatile and easy-going breeds like Quarter Horses, Arabians, and various gaited breeds.
• For therapeutic riding programs, calm and gentle breeds like Haflingers, Norwegian Fjords, and draft horse crosses are ideal candidates. 
• Basic horse tack includes grooming gear, lead ropes, and halters.
• You will also need riding tacks like saddle pads, girths, bridles, and reins.
• Basic grooming gear includes brushes, combs, picks, and sponges.
• You need buckets or tubs for feed, water, and tools such as spades, shovels, and rakes for farm upkeep.
• Larger equipment like tractors may also be necessary.
• For horse feed, the basic components of a horse’s diet include forage, concentrate, and supplemental foods such as pellets and grains.
• Straw or wood shavings are commonly used for bedding, but make sure it is approved horse bedding.
• A good water source, such as a water trough or automatic waterer, is essential for horses stabled for long periods.
• Invest in good quality equipment that lasts longer and is cheaper in the long run.

Managing horse health and nutrition is critical to running a successful horse breeding business. Providing your horses with proper nutrition can improve their performance, prevent health issues, and increase their lifespan.

• Regarding feeding patterns, horses require a consistent feeding schedule, with small, frequent meals spread throughout the day. The ideal feeding schedule is to provide hay and pasture grazing for 16-18 hours a day, along with two or three small grain meals. Each horse’s feed will depend on age, weight, and activity level.
• Regarding feed material, horses require a balanced diet that includes hay, grass, and grains. Alfalfa hay is rich in nutrients but can cause digestive issues if fed in excess. Timothy and grass hay are good options for adult horses. Young horses and pregnant mares require additional protein and calcium, which can be obtained through feeding alfalfa hay.
• It is important to give horses access to clean, fresh water at all times. Horses can drink up to 10-12 gallons of water daily, and dehydration can lead to various health issues, including colic.
• Regular health care is essential for maintaining horse health. This includes regular vaccinations, deworming, dental care, and hoof care. Regular veterinary check-ups can help identify and prevent health issues before they become serious.

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• Research the current market to find out which breeds are selling well and what traits customers look for in a horse.
• Don’t breed rare, exotic species unless you have experience with them. Start with a breed you know well and have handled before.
• Talking to existing breeders and visiting horse sales can help you learn more about the industry and get a feel for purchasing horses.
• Research the pedigree of the horses you’re interested in to ensure good breeding outcomes.
• Purchase horses from reputable sellers and get paperwork confirming their registration, purebred status, and good bloodlines.
• Consider buying a stallion to breed your mares for free, but only if you know how to handle and care for one.
• Start small with less than ten horses initially and see how it goes before expanding.
• Breeding racing horses require a lot of money and expertise, so only attempt it if you have firsthand knowledge of the industry.
• Gain experience and knowledge of properly handling, caring for, and understanding horses.
• Acclimate new horses to the farm and give them proper daily care.
• Safety checks on buildings and areas for breeding.
• Choose a stud with a good pedigree, achievements, and abilities if necessary.
• Start breeding when your mares go into heat.
• Continue breeding, riding, training, and selling your horses.

Always seek advice from current horse breeders with a good reputation and consider the cost of breeding and caring for horses. Safety, proper care, and training are essential for breeding healthy and well-behaved horses.

• Name your horse breeding business with a creative and memorable name that describes your specialization.
• Create a professional-looking website with quality web hosting to make a good attraction on potential customers.
• Promote your business by advertising in relevant horse interest and association/club magazines, using Google and Facebook ads, and maintaining a blog about your horse farm.
• Follow your business plan when purchasing, breeding, caring for, and selling your horses to build a solid reputation as a trustworthy breeder.
• Provide excellent customer service to stand out from your competitors and attract quality customers.
• Enjoy the journey of running your own business and use your expertise to teach, write, advise, etc.
• Show your horses to get the word out about your business, and use prizes and awards to promote the worth of your horses.

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• Startup costs: Purchase or lease costs for land, stables, breeding stock, farm equipment, and supplies such as fertilizers, seeds, and pesticides.
• Operating expenses: Expenses for feed, veterinary care, breeding fees, labor, marketing, transportation, and utilities such as water and electricity.
• Projected revenue: Revenue can come from breeding fees, sales of horses, and other potential income sources such as boarding, training, and riding lessons.
• Funding Requirements: Depending on the size and scope of the business, financing options may include personal savings, loans from financial institutions or government agencies, and investors.
• Break-even analysis : This can help determine the point at which the business will become profitable by comparing the revenue generated with the costs associated with running the business.
• Risk Analysis and Contingency Planning : Identify and resolve potential business risks and problems such as changes in market demand, natural disasters, or horse disease epidemics. Create contingency plans to limit the impact of these risks and ensure the business’s long-term viability.
• Legal and Regulatory Considerations: Choose an appropriate business structure, register the business with the relevant authorities, and obtain necessary licenses and permits. Some states may require specific certifications for breeding horses, so research the requirements in your area.
• Insurance Requirements: Obtain general liability, property, workers’ compensation, and equine-specific insurance coverage. Consult an experienced insurance agent to verify that you have adequate coverage for your specific requirements.

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A successful horse breeding business plan includes ten essential elements: clear goals, market research, financial planning, breeding program, health and nutrition program, facilities, marketing strategy, management team, legal considerations, and contingency plan.

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Best Strategies When Starting a Horse Breeding Business

• Starting a successful horse breeding business requires a deep understanding of horse genetics, market research, and a commitment to animal welfare.
• High-quality breeding stock is essential as it significantly impacts the reputation and success of your horse breeding business.
• A thorough and constantly updated business plan guides your venture, attracting potential investors and tracking your progress.
• Effective online and offline marketing and advertising increase your visibility, attract customers, and establish your brand in the horse breeding industry.

When embarking on the journey of starting a horse breeding business, there are some key strategies you need to keep in mind. First and foremost, it is crucial to possess a deep understanding of horse genetics and characteristics.

You should also recognize the significance of selecting the right breed for your business based on market demand. Furthermore, establishing a comprehensive business plan and maintaining high animal welfare standards will pave the way to your success in this industry.

Knowledge Acquisition

Pursuing knowledge is a fundamental prerequisite in starting a horse breeding business. Here are some tips:

Market Research

Conducting thorough market research is paramount to ensure the sustainability and profitability of your horse breeding business.  This process involves understanding the intricacies of the horse industry, identifying potential competitors, and determining the market demand for different horse breeds.

It’s crucial to stay up-to-date with industry trends, equine health advancements, and the equestrian community’s shifting needs. By analyzing this information, you can decide which breeds to specialize in and how to position your business in the marketplace. Market research guides your business strategy and helps identify potential challenges and opportunities, facilitating the development of contingency plans and growth strategies.

Invest in Quality Breeding Stock

Investing in quality breeding stock is critical to establishing your horse breeding business. High-quality breeding horses are key to producing superior offspring with desirable traits that the market values.  Carefully evaluate prospective breeding horses’ lineage, genetics, health, and temperament to ensure they align with your business goals.

Remember, the quality of your breeding stock can significantly impact your reputation in the industry—quality begets quality. Seek advice from experienced breeders and consider hiring a reputable equine veterinarian to assist in the evaluation process.

Moreover, attend horse auctions, shows, and events to expand your network, increase your awareness of the market’s preferences, and gain insights into the best breeds to invest in. A well-planned investment in quality breeding stock can set the foundation for your business’s success and profitability.

Establish a Business Plan

A well-thought-out  business plan  is essential to guide your horse breeding venture. This plan should outline your vision, mission, objectives, market analysis, marketing strategies, and financial projections. It presents a roadmap for your organization’s future, helps attract potential investors, and provides a benchmark against which you can measure your success.

Also, include a detailed management plan that covers horse care, pasture management, breeding schedules, and health protocols. Contingency plans for unforeseen events such as disease outbreaks, natural disasters, or market fluctuations should also be considered.

The business plan is not static; it should be revisited and revised continuously as your business grows and changes. By having a comprehensive business plan, you can navigate the complexities of the horse breeding industry with confidence and foresight.

Invest in Infrastructure

Infrastructure investment is a key step in setting up your horse breeding business. Adequate facilities, such as  high-quality agricultural pole barns , are crucial to ensure the welfare of your horses and the smooth operation of your business. These structures are designed to withstand varying weather conditions, providing a safe and comfortable environment for the horses and offering space for storage and daily operations.

A well-designed barn can facilitate efficient breeding processes, help manage your horses’ health, and contribute significantly to their overall well-being. Incorporating good ventilation, appropriate flooring, and proper lighting is essential. Remember, a well-planned infrastructure investment can showcase your commitment to horse welfare, enhance your industry reputation, and attract potential clients.

Prioritize Animal Welfare

The welfare of the horses should always be a top priority in your horse breeding business. This involves providing appropriate veterinary care, maintaining a clean and safe environment, ensuring access to nutritious food and fresh water, and offering socialization opportunities.

Regular health checks and vaccinations should be part of your routine, to promptly identify and address any health issues. Moreover, horses are social animals that thrive in herd environments, so provide opportunities for social interaction. Ethical treatment extends to the breeding process itself, ensuring it’s carried out in a manner that causes minimal stress.

Adhering to these practices not only ensures the physical well-being of your horses but also their mental and emotional health. Remember, a happy, healthy horse translates into higher market value, customer satisfaction, and a successful breeding business.

Marketing and Advertising

Effective marketing and advertising are essential to ensure the growth and sustainability of your horse breeding business. These strategies help increase your visibility within the industry, attract potential customers, and establish your brand. Utilize both online and offline platforms for your marketing efforts.

A well-designed website , active  social media  presence, and participation in equestrian events can significantly enhance your reach. Offline methods like print advertising in equestrian magazines and networking at industry events continue to be effective.

Moreover, consider collaborating with influencers in the equestrian community who can help promote your business. Remember, successful marketing doesn’t merely involve selling horses; it’s about sharing your passion for the industry, showcasing your commitment to animal welfare, and building trust with your audience. Be transparent and ethical in your marketing practices, and you’ll see your reputation and business grow.

Remember, your growth relies on effective marketing and advertising, so make your voice heard and share your passion with the equestrian community. Start your journey today, invest in your knowledge and resources, and make your mark in the horse breeding industry!

About The Author

Alex Miller

Sample Horse Breeding Farming Business Plan

Horse breeding business plan sample.

With an ever increasing horse loving community in the United States, the horse breeding industry continues to witness a steady influx of investors and entrepreneurs. With the steady growth in interest shown in this industry comes an accompanying desire for knowledge on how to undertake this business.

This article comes to the rescue by making available some of the strategies used producing a comprehensive business plan.

This sample acts as a guide in highlighting the key components of a good business plan. So for the interested horse breeder who will like to take his business to the next level, this horse breeding business plan sample will offer useful tips and insight on what should be included in a good business plan.

Here is a sample business plan for starting a horse breeding farm.

We start by first outlining the key points under which business plan will be written;

Table of Contents

Executive Summary

Products and Services

Vision Statement

• Mission Statement

Competitive Advantage

Target Market

Sales Projection

Source of Revenue

Publicity and Advert Strategy

Payment Channels

To be located in the heart of Texas, Rouge Horses is a horse breeding business that breeds quality horses consisting, using the best breeding techniques in the industry. Our products will be tailored to satisfy the needs of our horse loving clients. Rouge Horses is strategically located there are several horse racing facilities close to our horse breeding business.

We are into the horse racing business not just to participate, but to make a difference by being among the top 5 horse breeding businesses in Texas within our first 5 years of commencing operations.

This we intend to achieve by committing substantial resources to realizing our goal. We will be hiring the best horse breeders in the United states, including the services of business consultants that will guide and organize our entire business structure.

Our products will consist mainly of thoroughbred horses originating from an excellent bloodline of horses. Apart from our products, we will take part in other areas of business which will include participation in horse races, the hiring of our horses for events, the provision of training for interested individuals and organizations and the provision of advisory services.

Our vision at Rouge Horses is to be among the top 5 horse breeding businesses in Texas within the first 5 years of commencement of business. Our horses will be sold on demand both within and outside the State of Texas.

Our Mission

To make an impact in horse breeding by contributing positively to this industry both in the provision of high quality products and also in the provision of advisory and consultancy services to small horse breeding businesses.

A competitive advantage we will have over our competitors is the number of thoroughbreds in our stables. We will have an impressive collection of thoroughbreds, plus, our workforce will be highly motivated to contribute their expertise to the growth of our business. This motivation will come by way of attractive remuneration packages plus an attractive work environment.

Our target market will consist mainly of horse lovers and users. These range from households, horse race courses, ranches and other smaller horse farms needing excellent breeds of horses. This is in addition to our consultancy services that will be offered on demand to the same target market.

With an industry that has showed a strong potential for growth over the years, our horse breeding business has conducted research in the field which emerged with impressive sales projection figures.

Some of the factors used in making this analysis include the current growth indices of the horse breeding industry, plus the strength of the economy which directly impacts on the income potential of Americans.

Natural disasters and economic recession have however been discounted. The chart below summarizes the findings;

• First Year $380,000
• Second Year $520,000
• Third Year $800,000

Our source of revenue will come mainly from the sale of our products and services which include sale of horses, hiring same, offering advisory and consultancy services to interested clients and also training of individuals or groups on the techniques of horse breeding.

We will be adopting an effective publicity and advert strategy that will ensure word about the services we offer reach our target audience. Because we want to capture a fair share of the market, apart from using conventional means such as the use of internet associated tools and the electronic and print media, we will focus significantly on word of mouth marketing which spreads like wild fire.

We will adopt a wide range of payment options to capture the unique needs of our clients. Hence, for clients who will like to pay using channels acceptable to them, we will ensure they are not disappointed.

Hence, our channels will include the use of the POS machine, acceptance of cash payments, credit cards , mobile money transfers among several other options.

There you have it, the horse breeding business plan sample that offers the necessary guide to the entrepreneur interested in starting a horse breeding business, but possessing little or no knowledge on how to write a good one.

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Developing a Horse Breeding Program

Jan 31, 2020 | Horses , Reproduction and Breeding

The goal of every horse breeder is to produce genetically superior horses. Because there are so many environmental conditions which affect the horse, it is difficult to evaluate the genetic potential. A gifted breeder is able to select superior horses for mating, and manages the environmental affects, such as nutrition, health care, training and injuries, to maximize the horse’s genetic potential. Since breeding for quality horses is not a simple matter, breeders must understand basic genetic principles and their application to be successful in the horse business.

Basic Genetics of Horses

• Each horse has 32 pair of chromosomes.
• Qualitative gene action occurs when a single or only a few gene pairs control a trait.
• Quantitative gene action occurs when many gene pairs affect a specific trait.
• A heritability estimate is the estimate of what percentage of the horse’s actual makeup is due to genetics as opposed to the percent that is influenced by the environment.

For more information about equine genetics, see Basic Equine Genetics

Selecting Breeding Stock

The most important aspect of developing a good breeding program is the selection of outstanding breeding stock. Identifying genetically superior breeding stock is accomplished by using individual records, pedigree records and progeny information.

• Individual Records
• Pedigree Records
• Progeny Records

Achieving Genetic Progress

The rates of progress that a breeder makes in a breeding program are dependent on four things:

• Consistent goal
• Heritability
• Selection intensity
• Generation individual
• Consistent Goal
• Selection Intensity
• Generation Interval

In practice, many breeders maintain the same group of broodmares and stud for 10 to 15 years not realizing that they have made all the improvement possible after the first year. The goal should be to get the female offspring of mating age back into the breeding herd as soon as possible. In order to be a leader in this dynamic horse industry, a breeder must continually improve the quality of their herd.

End Result: A Progressive Breeding Program

A progressive breeding program must take advantage of these genetic principles in order to be successful. Progressive breeders should start with the best mares and stallions affordable.

The plan should be to produce 3 to 4 foals out of each mare and then replace the mare with her best filly. Any mares that do not produce or produce low quality colts should be eliminated from the breeding herd. A second stallion must be selected to breed to the new fillies that are used as replacements.

By taking advantage of the superior genetic potential in the foals produced and utilizing them in the breeding herd as quickly as possible, maximum genetic improvement will be achieved.

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This work is supported in part by New Technologies for Agriculture Extension grant no. 2020-41595-30123 from the USDA National Institute of Food and Agriculture. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the view of the U.S. Department of Agriculture.

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How to Start a Horse Breeding Farm

Last Updated: February 20, 2024 References

This article was co-authored by Jessica Rude . Jessica Rude is an Equine Expert currently working on a cutting horse ranch in Valley View, Texas as well as a horseback riding center in Princeton, Texas. Previously, she was a Trail Guide and Wrangler at a camp and retreat center In Dallas, Texas, and an Equine Breeding Barn Manager at a reining ranch in Tioga, Texas. Jessica holds a Bachelor’s degree in Animal Science with an emphasis in Equine Science from Tarleton State University. She has studied equine nutrition, reproduction, and management. Jessica specializes in equine breeding as well as instructing horseback riding lessons, leading trail rides, recognizing equine illnesses, and administering treatments. There are 21 references cited in this article, which can be found at the bottom of the page. This article has been viewed 198,059 times.

Starting a horse-breeding farm takes research, planning, and hard work, but it can be a fun, fulfilling project once you dive in. First, you will need to determine if this is the right business for you, find an appropriate location, set up your operation, and start your breeding program. For everything you need to know, saddle up, read on, and learn what's involved!

Finding the Right Land

• If you don't live in a community with farmland, you need to find an area that does and talk to members of that community. Go to local feed stores, small businesses, and community events to find people to talk to about land that is available in the area.

• Horses need approximately 1000 square feet (93 square meters) per horse, not including pasture and foraging area. More space is always better than less.
• If you want to let your horses forage for a lot of their food, you will need more like 1 acre per horse. However, most horse breeders don't have their horses forage for most of their food and a much smaller pasture is totally suitable.
• You'll need at least two separated areas of land, one for the stallion(s) and the other area for the mares. If you have more than one stallion, you'll need more separate areas, as keeping two stallions in the same pasture is not a good idea in most cases, especially since farm lots rarely replicate the wide ranges of wild horses.
• Moreover, there is a need for rotating pasture, to allow pasture to recover and to release the horses onto fresh pasture regularly. This means that you will need more pasture than you might think at first.

• Getting permission to use land commercially that hasn’t been used that way in the past can be a lengthy and costly process, depending on local regulations.

• If you plan on keeping horses on pasture all year round, the grass needs to be rich in vitamins and minerals and non-toxic to horses. It also needs to grow back quickly! On the other hand, if your climate means that the horses need to be kept indoors over winter, you'll need suitable barn accommodation with easy mucking out facilities and at least a small outside area for exercising during the warmest part of cold days.
• If you want most of your horse's food to come from grazing, you will need at least 1 acre of pasture land per horse.

Tip: Local agricultural organizations will often test land for you to help you identify the species of grass growing on it, and any other relevant issues, such as the mineral content of the soil.

• It's a good idea to have the water supply tested for quality before buying land. Water will be so important to your operation that you want to know you can depend on your supply. [3] X Research source
• On the other hand, too much water can water log your land, so drainage is important. If the pasture is water logged, its feeding potential will be destroyed and there will be problems for the horses walking in puddles and muddy conditions.

Setting Up Your Farm

• If you've owned 1 or more horses before, then you should be aware that there is a lot of work involved with caring for horses and that it's a rather expensive undertaking. Breeding horses will increase the work, the expenses, the worry, and the long-term attachment to your business in ways that simply owning a horse doesn't really prepare you for.

• Areas with snakes need to be checked for snake habitats in the pasture. Snakes and horses don't mix, so by reducing the habitat preferences of snakes, you can reduce the potential for snakes hanging around. Some things that may help are not having wood/log piles, junk heaps, and any other such place that encourages rodent breeding, which attracts snakes.

• Trees also need protection from chewing, including removal of chewed branches to prevent infection to the trees.

• Orient any shelter so that it heads away from prevailing cold winds and to make the most of cooling summer breezes (usually south facing in the northern hemisphere, vice versa in the southern hemisphere). [7] X Trustworthy Source Penn State Extension Educational organization dedicated to delivering science-based information to people, businesses, and communities Go to source
• Shelter is essential for hot, sunny days during the warmer months. A shade shed should be built in pastures lacking in shade trees. This can be as simple as a high roof on four posts or a shed with three sides; it can be made very inexpensively.

Tip: When building, get a variety of estimates rather than relying on just one builder. Also, only use registered builders affiliated with a recognized building association.

• Using wood that is non-toxic and enduring, you should expect a good 15 to 20 years life from a well-cared for wooden fence. The trick is in maintaining it––borers can attack such fencing and bored horses like to chew it.
• Another option is electric fencing. Provided it is properly earthed and made with quality wire using at least three to four rows, it is a cost-effective and usually safe solution. Most horses will shy away from it after a few shocks. However, sometimes it can scare a horse enough to destroy the fence, so care needs to be taken with particularly wild or frisky horses.
• Do not ever use hog wire fencing for horses. Horses (and other wildlife like deer) can accidentally get their legs caught in it.
• Barbed wire should not be an option for keeping horses. Barbed wire was designed for cows, not horses. Horses can be seriously injured, perhaps permanently, if they get caught in barbed wire.

Stocking All the Necessary Supplies

• Basic riding tack includes a saddle, saddle pad, girth, bridle, and reins.
• Basic grooming gear you will need includes a variety of brushes, combs, picks, and sponges.
• You will also need buckets or tubs for feed and water.

• You may also need some larger farm equipment, such as a tractor to use in your pasture land. [10] X Research source
• Also, when replacing the bedding, you will need either a bucket for transporting the bedding or a wheelbarrow.

Tip: Invest in good quality made tools, either new or used, as good equipment works better and lasts longer, making it cheaper in the long run because it won't have to be replaced as often.

• Forage—Horses eat forage, mostly including hay, to keep warm. When buying hay, look at the quality. You want something that is nutritious but is not going to pass right through the horse. Try to get grassy hay or oat hay. If you do get alfalfa (lucerne) hay, try to get a second or, even better, a third cut, as the hay will be more stalky and will not be too rich.
• Concentrate—This is typically a mixture of chaffs, including alfalfa, oats, and wheat. The alfalfa chaff will provide high protein and calcium for your horse, and the wheat will provide a source of bulk food. This is what the horse will eat to stay full but it does not put on or take away nutrients. This is used when you want to fill a horse up faster without adding heat and energy to the food. [12] X Research source
• Supplemental foods—Pellets and grain are good ways to put on weight and maintain it. They are also handy when you require a boost of energy for a show or your horse needs a lift. Boiled grains are best as they help to put weight on and, during the colder months, help to keep the horse warm. The best thing to start with is a lucerne pellet or a cool pellet. These feeds add no additional energy and they provide a range of vitamins and minerals. After a while, you can try different products until you find the perfect fit.

• Keep in mind that the bedding should be an approved horse bedding, as some by-products of woods and timber can be toxic to horses.

Purchasing the Horses

• Doing thorough research will ensure that you're well informed and that you're making the right decision about the breed that you're choosing.
• Don't jump into breeding rare, exotic breeds unless you've had experience with them. Start with a breed you know a lot about and have spent time handling.
• If you choose a very popular horse, such as a quarter horse, you will have to compete with more breeders to sell, therefore lowering the prices. However, if your aim is to provide quality in all respects, plot this out as part of your business plan.
• Breeding racing horses requires an enormous amount of money and expertise. This kind of breeding program should only be started by someone with excellent, firsthand knowledge of the racing industry or you risk making big and costly mistakes.

• You can also go through horse farms for sale to see what is available and the prices being fetched.

• Reputable horse breeders will include this in the terms of sale of your new horses.
• Horse registrations and pedigrees should have an official seal or signature from a registering body, such as an organization like the American Quarter Horse Association [15] X Research source

• It doesn't matter which breed you're breeding, but obviously some horses will cost you more, and some horses will sell for more.
• In terms of how many horses you start with, that should be determined by your research, your land space, and your budget. Initially, it's probably best to start small with less than 10 horses and see how it goes rather than over-extending yourself only to find out you can't manage it.

Tip: If possible, buy a stallion too so that you can breed your mares for free. Beforehand, though, make sure you know how to correctly handle and care for a stallion. If you're not yet ready to own a stallion, that's fine and it's good to recognize your limitations.

Starting Your Breeding Program

• How to lead a horse
• How to care for a horse
• How to tell if a horse is sick
• How to tack up a horse
• How to groom a horse
• How to prepare for the arrival of a horse

• Remember, your new horses are in an unfamiliar surrounding and everything is new and different. The water will taste different and the food will smell different, so let them adjust and have the food there just in case they are hungry.
• Find out what the horse was fed before you bought it. Horses' diets need to be adjusted over a period of several days or more depending on how much it'll be changed. Sudden changes can bring about gas, diarrhea and more serious complications.

Tip: Sort out an appropriate feeding regime before bringing your new horses to the farm. Base the regime initially on what the horses have been used to and then gradually shift them to your preferred diet for the horses (if necessary).

• Be careful not to get your horses too hot and sweaty when riding in winter. Your horse could very easily become sick or get a chill. If you'd like to ride in the wintertime, consider investing in a heated indoor arena. These are also nice places to ride untrained horses, give lessons to children, and ride a horse at a canter for the first time because if you fall you'll only land on sawdust and your horse won't be able to run off.

• If you plan on keeping your new horse in a stable either at night, most of the day or even for an hour or two, you'll need to make sure it is safe.

• Seek out and accept advice from current horse breeders who have an excellent reputation with other horse breeders about what studs to use. Check with your local horse association for more information. Most breeders will be happy to share information, as they're as keen as you to maintain high quality standards and to see more healthy horses.
• Breed your mare to a stallion that's similar in size. It's been known that if you breed, for example, a very short mare to a very tall stallion the foal may have deformed lungs, legs, and so forth, and may have to be put down. However, if you breed two horses that look very much alike, you should get foals with no deformities.
• You can also look into artificially inseminating your breed mares. You don't have to have a stallion or transport one to cover your mares.

• A well-trained horse is more valuable and will likely be friendlier and easier to work with.

• Always care for horses well and be kind. Both horses and the customers can sense a confident, kindly, and approachable breeder.

Marketing Your Horse Breeding Business

• For example, if you have a pleasant last name, you could use your last name and the words “horse breeding.”

• There are quite a few free web-hosting companies, so you can just use one of those if you don't want to pay a fee.
• People expect to find all the information they're looking for in an easy-to-read and professional website, so give them what they're looking for.

Tip: Include a list of all of the prizes and accolades you have won right on the home page of your website where customers can see the information. Don't hide behind modesty, as customers want to know your horses are prize winners.

• Ensure that there is a decent sign advertising your business at the front gate.
• Use every media opportunity in the local press that comes your way!
• If you like writing and photography, and have the time, maintaining a blog about your horse farm can be a great promotion. You can include horse breeding advice, glimpses of your daily activities, and tips for caring for horses. This can be an excellent form of outreach that will gain interested followers who might just turn into customers now and then.

• You might not make millions but if you're doing what you love and making ends meet plus a little more, breeding horses can be a satisfying career.
• As your expertise grows, you can use this expertise to teach, write, advise, etc. as well as breeding the horses.

• Showing of horses is a vast topic in itself, so do lots of research, both online and by talking to others who show horses.

Community Q&A

• Factor in your love of horses when deciding whether to start a farm. Working in a business that involves horses means that you'll likely be doing what you love, often an important element of a successful small business. Moreover, if you're already knowledgeable about horses because you are passionate about them, you'll be well ahead of others starting a business from scratch in products, goods, or animals about which they know nothing. Some other advantages of running a horse-breeding farm if you love horses include: the opportunity to ride horses regularly, a chance to be around your horses constantly, and caring for foals. Thanks Helpful 0 Not Helpful 0
• Determine if you have enough money to start a horse-breeding farm. Starting a farm in an expensive endeavor to undertake. Start-up costs include paying for land, stables, equipment, feed, employees, and the horses. You will need to have quality-breeding horses and this can be very costly. Make a list of all of the potential costs and then assess your finances to see if you have the money or can take out a loan to cover the costs. Thanks Helpful 0 Not Helpful 0
• Determine if there is a local vet you can use to care for your horses. When starting a horse-breeding farm you will need to have regular vet visits for general health maintenance, such as deworming and shots, everyday injuries, and breeding-related healthcare. If there is not a vet nearby, it will be difficult for you to maintain a working business. Thanks Helpful 0 Not Helpful 0

• Adequate equipment, supplies, and tack will cost you a lot of money. However, when starting up you may be able to make use of sales, discounts from belonging to professional organizations, and used items bought through auctions and other sales, so your costs may be able to be controlled a bit. Thanks Helpful 2 Not Helpful 0
• You won't necessarily see a good return for your spending for several years, meaning that you'll have to run a tight business and make do for a while. Thanks Helpful 1 Not Helpful 0
• Always be careful when handling horses, especially stallions. When near horses, always have on a riding helmet and riding boots. Remember that even if your horse loves you and would never deliberately try to injure you, you need to use the same safety precautions as you would with a strange horse. Thanks Helpful 1 Not Helpful 0

You Might Also Like

• ↑ https://www.farmlandinfo.org/special-collections/4499
• ↑ https://www.nar.realtor/agricultural/farm-land#section-165793
• ↑ https://agriculture.vic.gov.au/agriculture/farm-management/soil-and-water/water/farm-water-solutions/technical-resources/managing-farm-water-supplies-in-drought
• ↑ https://practicalhorsemanmag.com/health/breedingbusiness_122004-11335/
• ↑ https://thehorse.com/136723/pasture-management-101-starting-a-new-pasture-from-scratch/
• ↑ https://www.petco.com/shop/en/petcostore?ref=dfs
• ↑ https://extension.psu.edu/horse-stable-ventilation
• ↑ https://equusmagazine.com/horse-care/choose-the-right-fence/
• ↑ https://animals.mom.me/tack-absolutely-need-ride-horse-10552.html
• ↑ https://www.hobbyfarms.com/names-of-farm-equipment-4/
• ↑ https://esc.rutgers.edu/fact_sheet/the-basics-of-equine-nutrition/
• ↑ https://www.horsehage.co.uk/feedchafftohorses.html
• ↑ https://stablemanagement.com/articles/choosing-the-right-bedding-4026
• ↑ https://thehorse.com/149143/your-horses-water-sources-things-to-consider/
• ↑ https://thehorse.com/14411/reading-pedigrees/
• ↑ https://esc.rutgers.edu/fact_sheet/tips-on-buying-your-first-horse/
• ↑ https://esc.rutgers.edu/fact_sheet/safety-recommendations-for-the-stable-barn-yard-and-horselivestock-structures/
• ↑ https://www.usshba.org/blog/choosing-a-stallion-for-your-mare
• ↑ https://csu-cvmbs.colostate.edu/academics/bms/equine-reproduction-laboratory/Pages/Learn-Breeding-Mares.aspx
• ↑ https://thehorse.com/14555/foal-imprinting/
• ↑ https://www.horseandhound.co.uk/features/showing-advice-for-beginners-543744

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How to create a financial forecast for a horse breeding company?

Developing and maintaining an up-to-date financial forecast for your horse breeding company is key in order to maintain visibility on your business’s future cash flows. 

If you feel overwhelmed at the thought of putting together a horse breeding company financial forecast then don’t worry as this guide is here to help you.

We'll cover everything from: the main objectives of a financial forecast, the data you need to gather before starting, to the tables that compose it, and the tools that will help you create and maintain your forecast efficiently.

Let's get started!

In this guide:

Why create and maintain a financial forecast for a horse breeding company?

What information is used as input to build a horse breeding company financial forecast, the sales forecast for a horse breeding company, the operating expenses for a horse breeding company.

• What investments are needed for a horse breeding company?

The financing plan of your horse breeding company

What tables compose the financial plan for a horse breeding company.

• Which tool should you use to create and maintain your horse breeding company's financial forecast?
• Financial projections template for a horse breeding company

In order to prosper, your business needs to have visibility on what lies ahead and the right financial resources to grow. This is where having a financial forecast for your horse breeding company becomes handy.

Creating a horse breeding company financial forecast forces you to take stock of where your business stands and where you want it to go. 

Once you have clarity on the destination, you will need to draw up a plan to get there and assess what it means in terms of future profitability and cash flows for your horse breeding company.

Having this clear plan in place will give you the confidence needed to move forward with your business’s development. 

Having an up-to-date financial forecast for a horse breeding company is also useful if your trading environment worsens, as the forecast enables you to adjust to your new market conditions and anticipate any potential cash shortfall. 

Finally, your horse breeding company's financial projections will also help you secure financing, as banks and investors alike will want to see accurate projections before agreeing to finance your business.

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

A horse breeding company's financial forecast needs to be built on the right foundation: your assumptions. 

The data required to create your assumptions will depend on whether you are a new or existing horse breeding company.

If you are creating (or updating) the forecast of an existing horse breeding company, then your main inputs will be historical accounting data and operating metrics, and your team’s view on what to expect for the next three to five years.

If you are building financial projections for a new horse breeding company startup, you will need to rely on market research to form your go-to-market strategy and derive your sales forecast.

For a new venture, you will also need an itemised list of resources needed for the horse breeding company to operate, along with a list of equipment required to launch the venture (more on that below). 

Now that you understand what is needed, let’s have a look at what elements will make up your horse breeding company's financial forecast.

From experience, it usually makes sense to start your horse breeding company's financial projection with the revenues forecast.

The inputs used to forecast your sales will include the historical trading data of your horse breeding company (which can be used as a starting point for existing businesses) and the data collected in your market research (which both new ventures and existing businesses need to project their sales forward).

Your horse breeding company's sales forecast can be broken down into two key estimates: 

• The average price 
• The number of monthly transactions

To assess these variables accurately, you will need to consider the following factors:

• Horse health and fertility: The health and fertility of your horses can greatly impact the average price and number of monthly transactions for your breeding company. If your horses are healthy and able to produce quality offspring, you can expect to command a higher price and have more transactions. However, if your horses have health issues or fertility problems, it can lower the value of their offspring and decrease the number of successful breedings.
• Breeding trends and demand: The current trends in the horse breeding industry and the demand for specific breeds can have a significant impact on your sales forecast. For example, if there is a high demand for a certain breed or bloodline, you may be able to charge a higher price for your horses and see an increase in monthly transactions. On the other hand, if the market is saturated with a particular breed, it may be more challenging to sell your horses at a profitable price.
• Competitor activity: The actions of your competitors can also affect your average price and number of monthly transactions. If your competitors are offering similar horses at lower prices or have a better reputation, it may be more challenging to sell your horses at a higher price. However, if your competitors are struggling or have a shortage of horses, it can create an opportunity for you to increase your prices and attract more customers.
• Economic conditions: The state of the economy can also play a role in your sales forecast. During times of economic downturn, people may be less likely to purchase horses or may be more price-sensitive. This can result in a decrease in your average price and the number of monthly transactions. Conversely, during times of economic prosperity, people may be more willing to spend money on luxury items such as horses, leading to an increase in your sales.
• Breeding program and reputation: Your breeding program and reputation within the industry can greatly impact the success of your sales forecast. If you have a well-established and reputable breeding program, it can attract more customers and allow you to command a higher price for your horses. Additionally, if you have a track record of producing successful and high-quality horses, it can further increase the demand for your horses and their value.

Once you have a sales forecast in place, the next step will be to work on your overhead budget. Let’s have a look at that now. 

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

Once you know what level of sales you can expect, you can start budgeting the expenses required to operate your horse breeding company on a daily basis.

Expenses normally vary based on how much revenue you anticipate (which is why, from experience, it is always better to start your forecast with the topline projection), and where your business is based. 

Operating expenses for a horse breeding company will include some of the following items:

• Staff Costs: This includes salaries, wages, and benefits for all employees working at your horse breeding company. This could include breeders, trainers, grooms, and administrative staff.
• Accountancy Fees: You will need to hire an accountant to help you manage your finances and ensure compliance with tax laws. They will also assist with budgeting and forecasting.
• Insurance Costs: As a horse breeding company, you will need to have insurance to protect your horses, employees, and facilities. This could include liability insurance, property insurance, and equine mortality insurance.
• Software Licences: You may need to purchase software licenses for programs that you use to manage your breeding operations, such as record keeping software or breeding management software.
• Banking Fees: You will incur fees for maintaining a business bank account, processing transactions, and using other financial services such as wire transfers.
• Feed and Supplies: This includes the cost of feed, hay, bedding, and other supplies necessary for caring for your horses.
• Veterinary Expenses: You will need to budget for routine veterinary care, as well as unexpected medical expenses for your horses.
• Breeding Fees: If you use outside stallions for breeding, you will need to pay breeding fees to the owners of those stallions.
• Marketing and Advertising: It's important to promote your horse breeding company to attract customers, so you may need to budget for marketing and advertising expenses such as website development, print materials, and online ads.
• Facility Maintenance: You will need to budget for regular maintenance and repairs for your breeding facilities, as well as any upgrades or improvements.
• Transportation Costs: This includes the cost of transporting horses to and from breeding facilities, as well as any shipping costs for sales or shows.
• Utilities: You will need to pay for utilities such as electricity, water, and gas for your breeding facilities.
• Legal Fees: It's important to have a lawyer to help you with contracts, agreements, and any legal issues that may arise in your horse breeding business.
• Equipment Maintenance: You will need to budget for maintenance and repairs for any equipment you use in your breeding operations, such as tractors or trailers.
• Training and Education: As a horse breeder, it's important to stay current with industry trends and techniques, so you may need to budget for attending workshops, seminars, or other training opportunities.

This list will need to be tailored to the specificities of your horse breeding company, but should offer a good starting point for your budget.

What investments are needed to start or grow a horse breeding company?

Creating and expanding a horse breeding company also requires investments which you need to factor into your financial forecast.

Capital expenditures and initial working capital items for a horse breeding company could include elements such as:

• Breeding Stock: This includes the cost of purchasing high-quality horses for breeding purposes. This can also include expenses such as transportation, quarantine, and any necessary vet checks.
• Breeding Facilities: This includes the construction or renovation of facilities such as barns, pastures, and breeding sheds. It can also include the cost of equipment such as breeding stocks and foaling stalls.
• Breeding Equipment: This includes the purchase of equipment used for breeding such as ultrasound machines, semen tanks, and artificial insemination equipment.
• Land: If you do not already own suitable land for your horse breeding company, you may need to purchase or lease land for your facilities and pastures.
• Breeding Licenses and Permits: Depending on your location, you may need to obtain licenses and permits for your horse breeding company. This could include permits for breeding, transportation, and operating a business.

Again, this list is not exhaustive and will need to be adjusted according to the circumstances of your horse breeding company.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

The next step in the creation of your financial forecast for your horse breeding company is to think about how you might finance your business.

You will have to assess how much capital will come from shareholders (equity) and how much can be secured through banks.

Bank loans will have to be modelled so that you can separate the interest expenses from the repayments of principal, and include all this data in your forecast.

Issuing share capital and obtaining a bank loan are two of the most common ways that entrepreneurs finance their businesses.

Now let's have a look at the main output tables of your horse breeding company's financial forecast.

The projected profit & loss statement

The projected profit & loss shows how profitable your horse breeding company is likely to be in the years to come.

For your horse breeding company to be financially viable, your projected P&L should ideally show:

• Sales growing above inflation (the higher the better)
• Profit margins which are stable or expanding (the higher the better) 
• A net profit at the end of each financial year (the higher the better)

This is for established horse breeding companies, there is some leniency for startups which will have numbers that will look a bit different than existing businesses.

The projected balance sheet

Your horse breeding company's forecasted balance sheet enables you to assess your financial structure and working capital requirements.

It is composed of three types of elements: assets, liabilities and equity:

• Assets: represent what the business owns and uses to produce cash flows. It includes resources such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: represent funds advanced to the business by lenders and other creditors. It includes items such as accounts payable (money owed to suppliers), taxes due and loans.
• Equity: is the combination of what has been invested by the business owners and the cumulative profits and losses generated by the business to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

The cash flow forecast

Your horse breeding company's cash flow forecast shows how much cash your business is expected to consume or generate in the years to come.

It is best practice to organise the cash flow forecast by nature to better explain where cash is used or generated by the horse breeding company:

• Operating cash flow: shows how much cash is generated by the operating activities
• Investing cash flow: shows how much will be invested in capital expenditure to maintain or expand the business 
• Financing cash flow: shows if the business is raising new capital or repaying financiers (debt repayment, dividends)

Keeping an eye on (and regularly updating) your horse breeding company's cash flow forecast is key to ensuring that your business has sufficient liquidity to operate normally and to detect financing requirements as early as possible.

If you are trying to raise capital, you will normally be asked to provide a monthly cash flow forecast in your horse breeding company's financial plan - so that banks or investors can assess seasonal variation and ensure your business is appropriately capitalised.

Which tool should you use to create your horse breeding company's financial projections?

Building a horse breeding company financial forecast is not difficult provided that you use the right tool for the job. Let’s see what options are available below.

Using online financial forecasting software to build your horse breeding company's projections

The modern and easiest way is to use professional online financial forecasting software such as the one we offer at The Business Plan Shop.

There are several advantages to using specialised software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You have access to complete financial forecast templates
• You get a complete financial forecast ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast, and recalibrate your forecast as the year goes by
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck
• It’s cost-efficient and much cheaper than using an accountant or consultant (see below)

If you are interested in this type of solution, you can try our forecasting software for free by signing up here .

Calling in a financial consultant or chartered accountant

Outsourcing the creation of your horse breeding company financial forecast is another possible solution.

This will cost more than using software as you can expect as your price will have to cover the accountant’s time, software cost, and profit margin.

Price can vary greatly based on the complexity of your business. For a small business, from experience, a simple three-year financial forecast (including a balance sheet, income statement, and cash flow statement) will start at around £700 or $1,000. 

Bear in mind that this is for forecasts produced at a single point in time, updating or tracking your forecast against actuals will cost extra. 

If you decide to outsource your forecasting:

• Make sure the professional has direct experience in your industry and is able to challenge your assumptions constructively. 
• Steer away from consultants using sectorial ratios to build their client’s financial forecasts (these projections are worthless for a small business).

Why not use a spreadsheet such as Excel or Google Sheets to build your horse breeding company's financial forecast?

You and your financial partners need numbers you can trust. Unless you have studied finance or accounting, creating a trustworthy and error-free horse breeding company financial forecast on a spreadsheet is likely to prove challenging.

Financial modelling is very technical by nature and requires a solid grasp of accounting principles to be done without errors. This means that using spreadsheet software like Excel or Google Sheets to create accurate financial forecasts is out of reach for most business owners.

Creating forecasts in Excel is also inefficient nowadays:

• Software has advanced to the point where forecasting can be done much faster and more accurately than manually on a spreadsheet.
• With artificial intelligence, the software is capable of detecting mistakes and helping decision-making.

Spreadsheets are versatile tools but they are not tailor-made for reporting. Importing your horse breeding company's accounting data in Excel to track actual vs. forecast is incredibly manual and tedious (and so is keeping forecasts up to date). It is much faster to use dedicated financial planning tools like The Business Plan Shop which are built specially for this.

Use our financial forecast templates for inspiration

The Business Plan Shop has dozens of financial forecast examples available.

Our templates contain both a financial forecast and a written business plan which presents, in detail, the company, the team, the strategy, and the medium-term objectives.

Our templates are a great source of inspiration, whether you just want to see what a complete business plan looks like, or are looking for concrete examples of how you should model financial elements in your own forecast.

• A financial projection shows expected growth, profitability, and cash generation for your business over the next three to five years.
• Tracking actuals vs. forecast and keeping your financial forecast up-to-date is the only way to maintain visibility on future cash flows.
• Using financial forecasting software makes it easy to create and maintain up-to-date projections for your horse breeding company.

You have reached the end of our guide. We hope you now have a better understanding of how to create a financial forecast for a horse breeding company. Don't hesitate to contact our team if you have any questions or want to share your experience building forecasts!

Also on The Business Plan Shop

• Example of financial projections

Know someone who runs or wants to start a horse breeding company? Share our financial projection guide with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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The Ultimate Guide To Building An Equestrian Business

August 10, 2022.

Hi, I'm Paige, half of the duo behind Fairway Stables™

This website is the one I've been searching for, for years; a compilation of knowledge on all things horsemanship, including practical advice on how to start an equestrian business. No matter your experience level with horses or homesteading, I hope this is a place you can get lost in, and learn something along the way - we welcome everyone from vets, to lifelong ranchers, trainer, to nonprofits contributing.

Categories 

Homesteading equine law equestian living horseback riding.

Starting a business in general is an exciting, daunting, and stressful experience. It’s thrilling to take risks and follow your passion, but you may get anxiety about whether you have what it takes to make a business successful.

This is especially true of equestrian businesses . Many owners get into the horse business for love of horses and the sport, forgetting that they need to run a business properly to succeed. Find out everything you need to know to start your equestrian business off right.

Table of Contents

• Overview of Equestrian Businesses
• Size of Equestrian Industry
• Equestrian Industry Worth

Glossary of Equestrian Business Terms

• Equestrian Business Ideas
• What to Consider Before Starting an Equestrian Business

How to Start an Equestrian Business

Growing your equestrian business.

What Is an Equestrian Business? A Brief Overview

There’s no strict definition for an equestrian business. An equestrian is a person who rides a horse. As an adjective, equestrian can refer to anything related to horseback riding.

A business is an activity or enterprise entered into for profit. Put those together and you get an equestrian business.

Equestrian businesses can be anything that focuses on horses or horseback riding, including businesses that house or train horses, care for horses, show horses, or breed horses. It may also include the businesses responsible for managing facilities, pasture, waste removal, and more.

How Big Is the Equestrian Industry?

In the US, there are roughly 158,000 equestrian businesses and no major companies.

Each business represents a small portion of market share (<5%), While a third of US households have a horse enthusiast, only 1.3 percent own a horse. The remainder participate in horse activities or enjoy horse events.

How Much Is the Equestrian Industry Worth?

The equestrian industry is worth $122 billion and created 1.7 million jobs in the US. There’s not only direct contribution with economic activity that occurs in the horse industry itself, but also the positive ripple effect into other economic activity outside of the horse industry.

Horse Ranch

A ranch is a large farm used for raising animals, such as cattle, sheep, or horses. A horse ranch focuses specifically on horses.

Generally, a stable can refer to a building that houses horses or an establishment where horses are kept and trained.

Equestrian Facility

An equestrian facility is a facility designed to accommodate, train, or compete with horses. Based on their use, an equestrian facility may be referred to as an equestrian center, stables, riding hall, barn, livery yard, boarding stable, or ranch.

A stud farm is a term used in animal husbandry to indicate a facility for selective breeding. While stud comes from Old English and means a “herd of horses or place where horses are kept for breeding,” the modern use of the term refers to a stallion that’s currently used for breeding. Stud farms may be full breeding operations or purely stud service.

Boarding Stable

Also known as a livery yard or livery stable, a boarding stable is a facility that houses and cares for other people’s horses for a fee.

Riding Stable

A riding stable is a facility that houses horses for equestrian activities. Though separate from a boarding stable, the two may be combined. A riding school or academy may also be called a riding stable.

Barn is a colloquial term for a stable or equestrian facility. Barns are located on farms and hold equipment, grain, and sometimes horses or cows, but they’re distinct from a stable.

Farm is a catch-all term for activities related to agriculture. Though technology is reserved for food production, “farms” may include feedlots, orchards, and ranches. Properties with horses aren’t typically referred to as a horse farm (with the exception of a stud farm). The purpose and use of the facility determine which term is preferred.

21 Equestrian Business Ideas

Let’s take a look at several equestrian business ideas that can help you turn your passion into profit.

Boarding/Livery

For many horse owners or enthusiasts, keeping a horse at home isn’t an option. They still want to ride, however, so they look into a boarding or livery facility.

Generally, a boarding stable charges a monthly fee to house a horse and provide for its needs. Boarding stables offer different options for board, and the monthly charge depends on factors like pasture or turnout, location, amenities, on-site trainers and instructors, tack storage, and more.

Typically, boarding stables offer the following fee options:

This includes all the necessities for the horse, plus a stall with full turnout. Full board is the most time- and work-intensive, since owners leave all the work to the facility – they clean the stalls, feed the horse multiple times a day, and take it in and out to pasture. For a busy adult equestrian or the overwhelmed parents of a child rider, this is an ideal option.

Some boarding facilities also offer additional services for a fee, such as lessons with a qualified instructor, access to indoor or outdoor riding arenas, trails, or equipment use. Owners may have to pay for specialized feeds and supplements, grooming, blanketing, and similar services.

Typically, veterinary care and farrier care are the financial responsibility of the owner. Some facilities will maintain the same veterinarian and farrier for the entire facility, while others will allow owners to bring in their preferred professionals. For a new horse owner, having vetted and qualified professionals offers peace of mind, but an experienced equestrian may prefer their own veterinarian and farrier.

Partial Boarding

Partial boarding is essentially a timeshare with a horse. In this situation, the owner shares the use of their horse with another person in exchange for cheaper boarding fees. This arrangement may be used for owners with horses that are docile enough to be “school” horses, or lesson horses, but it may also be beneficial for a busy adult with a horse that’s suitable for another rider.

In this arrangement, both parties split the boarding costs. For example, if board is typically $500 per month, but the horse is used for lessons, the owner will only pay $250. This does involve a contract agreement to ensure that everyone is protected, which may outline how often the horse may be ridden, whether the rider can bring their own equipment, and who is responsible for farrier and veterinarian services.

Pasture Board

Pasture board can be an economical option for an owner and convenient for you. If you have land, you permit the horse to live outdoors year-round with feed, water, and a simple run-in shelter. The work and maintenance is minimal compared to a full boarding facility while giving you income from your land.

Depending on the climate, pasture board may offer additional services like blanketing in cold weather, either included or for a fee. Pasture board also requires you – or your staff – monitor the horses outside to ensure they’re cared for properly.

Pasture board is appealing for its low fees, though horses get less attentive care in this arrangement. This is ideal for occasional riders, retired older horses, horses that prefer to roam, and horses with medical conditions like recurrent airway disease (heaves).

In addition, someone with well-bred show horses or breeding horses typically want minimal turnout alone to avoid potential injuries or blemishes that affect the horse’s appearance, such as bite marks or cuts.

Self-Care Board

Self-care board is basically renting out only the facility and amenities but leaving the actual care to the owner. The horse gets a stall and access to turnout, but the owner must provide their own feed and bedding, muck out the stall, feed and water the horse, and bring it in and out from the pasture. They also handle their own arrangements for veterinary and farrier services.

For people who live near the stable, self-care board is a convenient and economical solution. They get to take a hands-on approach to their own horse’s needs, even if they don’t have land. Sometimes, groups of riding friends will take a self-care board arrangement and handle the care of each other’s horses in shifts to make chores more practical and convenient.

The downside of a self-care board is that owners don’t have schedule freedom or flexibility. They are responsible for their own horse’s care at all times and have to make arrangements for vacations or other obligations. As the facility owner, you can offer care for an extra fee when the owners are unavailable to care for their own horses.

Short-Term Boarding

If you have a facility with extra space, short-term boarding provides accommodation for horses if owners are traveling or moving. Short-term and overnight boarders can add income to an existing boarding facility and make up for empty stalls.

Many boarding facilities offer multiple types of short-term boarding with different fees, such as one-day, one-week, or one-month boarding. The traveler may supply the feed and buckets, but the facility handles the stall, bedding, turnout, and care.

Short-term boarding can be beneficial in many ways and boosts the exposure of a stable, but it’s important to have the right setup. Traveling horses can present a disease or injury risk to the other boarders, which is why owners need to supply buckets. There should be stalls and turnout that are separate from the long-term boarding clients.

Retirement Boarding

In many ways, retirement boarding is similar to a nursing home for elderly humans. Owners who no longer compete or ride – or ride only occasionally – can enjoy the benefits of boarding in a quieter facility than a competition stable. In addition to older horses, these facilities may board horses that have been put out of commission due to injury.

Retirement boarding may be structured as a full-service, partial, or self-care boarding arrangement. All the horse’s needs are cared for, including veterinary and farrier services, but in a low-key environment.

Additional Arrangements

When it comes to boarding, just about any arrangement you can imagine has been done. Some stables may work out reduced rates for owners who are willing to take on some chores, such as mucking out their own stalls. Some may offer work-exchange or working-student arrangements, which is when equestrian students do barn chores in exchange for reduced board or free lessons or training.

If you choose to offer these kinds of flexible arrangements for boarders, it’s important that all the responsibilities of both parties are outlined in the boarding contract. Those who don’t hold up their end of the arrangement will have to pay full board – or whatever the penalty is according to the contract.

Training and Instruction

Often combined with boarding facilities, training and instruction is another option for an equestrian business. Many equestrians will choose a boarding facility based on the option of an on-site instructor or horse trainer.

There are numerous paths to becoming a professional horse trainer or riding instructor. You don’t need a degree or certifications, in most cases, but you do need something to establish yourself as an authority. Typically, horse trainers and instructors have a track record of success in prominent horse show circuits or reputation for training champion horses.

If you don’t want to train or instruct yourself, you can hire an on-site trainer and instructor for your boarding clients. Ideally, the trainer and instructor should be specialized in a discipline, such as hunter/jumper or cutting.

Another option is subcontracting. In this arrangement, you may or may not provide an on-site trainer, but if you get a rider who prefers to work with their own trainer, they can pay for the use of the amenities like the indoor or outdoor arena.

In addition to on-site staff and subcontractors, many boarding facilities will bring in big-name trainers for clinics. The trainer has run of the facility for the time they’re scheduled, and students can book appointments for lessons. This is helpful for the riders, since the trainer comes to them, and they can work in the environment in which they and their horses are most comfortable.

Breeding Operation

Breeding horses is a diverse facet of equestrian business. Not for beginners to the horse world, breeding takes a lot of time, passion, and a gift for selecting solid breeding stock . Like breeding other animals, care must be taken to ensure that the foal crop is free of genetic illness and that the most desirable traits are passed through the generations.

Horse breeders are not “backyard breeders” bringing together their two mutts to sell the puppies. While that may happen, horse breeders usually focus on one pure breed and specialize in specific purposes like barrel racing, flat racing, or show jumping. They know the pedigrees of the stock inside and out, as well as what makes a horse a champion in their respective discipline.

In addition, breeding requires skill and comfort around horses. Both stallions and mares in heat can be difficult to handle, and a lot goes into the care or the breeding stock and bringing up the foals.

There are a few ways to approach a breeding operation, from boutique breeders to studding services to full-scale breeding operations. Many breeders get started by realizing an opportunity with their winning stallion or mare, or simply having a good eye for superior horses.

Full-Scale Breeding Operation

A breeding operation may be full-scale with on-site stallions, mares, and foals, as well as the necessary breeding areas and equipment. This is a big undertaking, since you’re providing land and stalls for your breeding stock and the foal crop.

One of the advantages to a full-scale breeding operation is that you can start small, however. Just a stallion and a few mares with a stable and some land can grow over the years to become dozens of horses on hundreds of acres.

Most full-scale breeding operations have their own breeding stock that’s either already owned or purchased (the latter is more expensive!). Owners may hold back some foals for future breeding, meaning they’re not offered for sale, while the others are sold for profit. These operations may also bring in new mares or stallions to diversify the crop over the years.

Usually, a full-scale breeding operation will use hand-mating and artificial insemination for their own breeding stock. They may offer stud services for artificial insemination, or they may bring an outside mare for studding.

One main difference between a breeding facility and other types of horse facilities is that it’s set up for breeding. There’s plenty of land and space for not only the current horses but the future ones as well. These facilities also have areas for hand-mating and insemination, veterinary equipment, studding, and separate pastures for individual stallions, mares, and weanlings or yearlings.

With purebred horses, there may be an additional registration process with the breed registry. The process can vary, but horses may be eligible for registration and branding that allows them to compete in breed-specific competitions and increases their value.

Some owners maximize profits by studding out their champion stallion, giving them income without running a full breeding operation. When a champion racehorse or show horse finishes its career on a high note, the owner can use that notoriety to offer the horse’s semen for a fee.

They simply offer the material to impregnate the mare, and the mare’s owner is responsible for the rest. Because the work involved in studding is less intensive than a full breeding operation, people may keep and stud a stallion at a riding or boarding facility instead of a dedicated breeding ranch.

Some studs can command fees of thousands of dollars for semen, and a male horse produces enough to pair with over 100 mares. Of course, if the stud produces a bunch of duds, the fee can plummet – it’s a gamble.

Mares have long gestation periods – typically 11 months – which is a long period to be out of commission. Pregnancy also carries risk that can lead to loss of life or loss of use. Some owners who want to breed their mare prefer to avoid this risk by using a surrogate mare, or recipient mare.

The time period in which a mare can carry a foal safely and successfully is also limited. If the mare can’t take time off of showing for breeding, surrogacy allows for multiple pregnancies from different mares in a given year while she continues to show. It also allows the mare’s owner to breed her to multiple stallions at the same time to produce a range of foals.

Reproduction is done through artificial insemination with an embryo transfer, sperm injection, and semen freezing, shipping, and storage. It’s a long process, but comparatively shorter than having a mare out of the show circuit.

The mare’s owner is responsible for the stud fee and associated costs, the cost of artificial insemination, and the veterinary care for the mare.

Also, like a stud, the surrogate mare may be part of a larger breeding facility or simply kept at a boarding or riding stable. For owners of mares that aren’t suitable for breeding or showing at a high level, surrogacy is a way to make use of their optimal breeding years.

Riding Clinics

Riding clinics are intensive training sessions that take place with a qualified equestrian instructor or trainer. Typically, these clinicians have an accomplished equestrian career in a specific discipline that qualifies them to command a high fee for training sessions.

If you’re a trainer or instructor yourself, you can provide clinics on a travel tour. Students would book appointments in advance to ensure that your time, travel, and expenses are worthwhile. In fact, some of the biggest-name trainers often have waiting lists, applications, and cut-off dates to book lessons.

With this arrangement, you would pay for use of the facility and its amenities for your clinic. Often, the students who attend will be from the same facility, but they may also travel to attend. For accomplished equestrians, this can be lucrative.

Conversely, if you own a riding stable or boarding facility, you can offer clinics. It will not only make your facility more appealing to clients, but it gives you an extra source of income. The catch is that you would need to seek and find the right opportunities.

When you bring in clinicians, it’s important that they teach the discipline that appeals to most of your clients. There is some overlap, such as a show jumper participating in a dressage clinic, bringing a clinician in English equitation won’t be appealing to a stable full of barrel racers.

Tourist Ranches

Tourist ranches, also known as dude ranches or guest ranches, are a type of vacation property that has horses for guest use. These are all-inclusive experiences that combine hospitality and horsemanship.

Dude ranches have been around since the 19 th century. Tourists enjoy the pioneer experience and nostalgia without risking their health and welfare. Many began in the West and offered activities to indulge in the “cowboy” life, but now, they come in a wide variety.

Ranches run the gamut from romantic Wild-West cattle ranches to luxurious resorts with top-notch amenities like tennis courts and heated swimming pools and spas. The beauty of them is that you can make the ranch what works best for you and the location.

For example, some ranches offer adventure experiences like hiking, whitewater rafting, cattle herding, target shooting, and fishing. Others operate similarly to a luxurious resort, but include horses and horse-related activities like trail rides. In either case, they include cabins or other accommodation for guests on the property, as well as services like dining and housekeeping.

These destinations are particularly appealing to families with kids. Often, activities are designed to keep the kids entertained, such as campfire sing-alongs and petting zoos. Many ranches have themes that inform the whole experience, such as ranches that allow guests to participate in antiquated activities like churning butter or milking goats.

The different types of guest ranches may include:

Working Dude Ranch

These types of ranches are working cattle or sheep operations. Horseback riding excursions may be reserved for those with experience with cowhorses, though some ranches may offer different excursions based on skills and experience.

This is the most authentic of the ranch experiences. Visitors expect – and want – hard work and hands-on activities. Assisting in herding cattle, grooming horses, and mucking stalls may be part of the experience.

A basic dude ranch of guest ranch caters to visitors looking for horseback riding. These are the more romanticized Wild-West ranches that teach guests the “cowboy” life and allow them to take part in iconic experiences like lassoing, driving cattle, and camping out with horses under the stars.

Generally, visitors are looking more for activities directly related to cowboy culture and fantasy, not necessarily general ranch chores or menial labor. They want to ride and rodeo, not muck stalls.

Resort Ranch

Resort ranches are the luxury ranches that offer upscale accommodations and amenities. The overall style may be frontier or working ranch, but the rooms, amenities, food, and entertainment are more like a luxury resort or cruise.

Typically, resort ranches offer a more diverse array of activities and facilities. Along with the expected ranch amenities, they may have a pool, fitness center, spa, childcare facility, fine dining, a bar, and an entertainment venue. This is more of a “glamping” ranch experience than a true frontier west experience.

Hunting Ranches

Though less common, areas with desirable game may have hunting ranches. They operate similarly to a working ranch or dude ranch, but they include hunting in the activities separate from the horseback riding.

Depending on the location, the hunting may include elk, moose, bears, or deer. Some ranches may offer captive-bred exotic game for trophy hunters, such as antelope. The high tag fee and hunting guides support the care and proliferation of a rare or threatened species.

These are the basic types of ranches, but they may combine elements of each other or offer something unique. Ultimately, the common thread is horseback riding. Whether it’s an organized trail ride, lessons, or a cattle drive, guest ranches center the experience around the horses.

There’s a lot to consider when starting a guest ranch, however. Depending on the location, it may only be able to operate seasonally. You also have to simultaneously run a hospitality business and an equestrian business.

Horse-Related Adult Retreats

Wellness or nature retreats are popular among adults. Whether focused on meditation, yoga, getting in touch with nature, women-only, or any other type of theme, these adult retreats may include equestrian activities.

The retreat may be reserved for experienced riders or beginners, but they have a theme that informs all of the activities. Journaling, meditation, life-coaching training, group therapy, nature walks, creating vision boards, and beach yoga are among the types of activities that retreats offer.

As far as the equestrian activities, it depends on the experience level of the participants. A retreat may teach basic horsemanship for beginners to horse yoga to advanced activities like team penning and barrel racing.

Like running a dude ranch, starting an equine retreat for adults means balancing the demands of a horse business and a tourist experience.

Horse Rescue

A horse rescue is a non-profit organization that cares for abused, starving, or abandoned horses. Like other rescues, horse rescues are often no-kill, volunteer-based organizations that provide a safe environment for horses, care for their basic needs, and educate the public about their welfare.

Running a horse rescue or shelter may be born of passion, but it needs to be approached like a business. Horses are expensive to care for, especially in a rehabilitation environment, and the IRS has specific requirements for non-profit status and donations.

Another aspect to consider is that rescues are run as non-profits, so the profitability isn’t widely known. Generally, these are not lucrative businesses.

Horse Leasing

Horse lovers may dream of having a horse of their own, but it’s not an option for every equestrian. For riders who are just starting out or lack the ability to buy a horse of their own, leasing a horse is an excellent alternative.

If you own a horse suitable for another rider, leasing gives you income for the privilege of allowing your horse to be ridden. You maintain ownership, care, and financial responsibility for the horse, but you’re giving a rider a chance to learn and prepare for eventual horse ownership.

For the rider, they essentially “rent” the horse and take on fewer financial responsibilities – think of it like renting an apartment vs. buying a home. If they decide they no longer want to ride or they move, they’re free of the responsibility of selling or relocating the horse.

This is an ideal arrangement for beginner riders. If they bought a horse, they may outgrow it or lose interest in the sport. Leasing acts as a “stepping-stone” in their riding career.

There are numerous types of horse lease arrangements:

Partial Lease

A partial lease, or half lease, provides the privilege of riding a horse on certain days of the week. The owner still has riding privileges, so both parties are basically “sharing” the horse. With this arrangement, the horse typically remains on the premises instead of being moved to another facility.

Most partial leases offer the ability to ride three or four days a week for a fixed monthly fee. The expenses for veterinary care or farrier services may be split, or they may fall on one party. These arrangements typically run month-to-month, rather than a long-term contract.

With a full lease, only one rider has the privilege of riding the horse. This is the closest to horse ownership for the rider, since they can choose when and how often they can ride without working around another’s schedule.

Some full lease arrangements permit the rider to move the horse to a different facility, while others require the horse stay on the owner’s premises. Full leases also come with more responsibilities and costs, such as veterinary or farrier fees and horse insurance. Still, when it comes to making decisions about care, the owner is in control.

Other Lease Arrangements

Like boarding, leasing can take on many forms. Facilities may work with lesson leases to use horses for students instead of a partial board arrangement. Quarter leases are also an option for casual riders who only want to ride a few times a week and don’t want to pay for unused riding time.

No matter the arrangement, it’s vital that all aspects of the lease are in writing. A lease is similar to other types of rentals, so the arrangement should include the terms to protect both parties.

Stable Merchandising

If you already have a breeding, riding, boarding, or training facility, merchandising is a great way to bring in extra income and boost brand exposure.

Stable merchandise is branded gear with the stable’s logo and brand colors. Prominent equestrian facilities often sell branded merchandise like zip-ups, custom dress shirts, hats, tote bags, notebooks, tank tops, socks, saddle pads, and travel mugs. These products are relevant and practical for the client and promote the facility for minimal cost.

Professional Equestrian

A professional equestrian is an elite career . The competition can be fierce, but a rider with the skill, talent, and qualifications can make a solid income. You can work from your own facility, or your business could be your personal brand.

Professional equestrians are paid to ride and show other people’s horses. If you’ve ever watched a competition, you may notice that some riders compete multiple times or in multiple events with different mounts. That’s because they’re paid to show an owner’s horse.

Owners want the best riders for their horses. They want the horses to get noticed and develop a name for themselves, which comes into play when they try to sell or breed them. Sometimes, older owners no longer ride, but they want their horse to compete and pay a professional to showcase them.

Professional equestrians also train and teach. Usually, a professional equestrian does a combination of all three, but within the same discipline or related disciplines. Professionals also have experience in other aspects of horse care and management.

The biggest challenge with becoming a professional equestrian is building your personal brand. You have to compete at high levels and win to make a name for yourself and cultivate a demand for your riding and training skills.

Horse Transport

Investing in a horse trailer, and a truck to pull it, and learning the ins and outs of driving the outfit is overwhelming to many horse owners. Offering horse transport services can be a lucrative business.

Horse owners may need transportation to shows, but you also have the option of offering long-distance hauls for owners who are moving or showing on the national level. Owners may need transportation to university veterinary hospitals or when they’re transferring to a different facility as well.

Keep in mind that the requirements to transport a horse a few hours away are vastly different from the requirements to transport them across multiple states over long periods. For example, horses on long-distance trips need a trailer with a box stall and frequent stops for water and stretching. You may also need to develop a network of short-term boarding facilities for overnight stops.

Transporting horses doesn’t take as much horse knowledge as some other types of horse businesses. The start-up costs can be significant, however, especially if you’re trying to get multiple outfits. You’ll also need liability insurance and written policies about how horses will be handled, what happens in the case of injury, and how clients will be notified about transportation status.

Local laws and regulations apply to horse transport in a state, city, and county, however. It’s important to speak with an attorney to ensure you’re doing everything by the book.

If you own a riding stable or boarding facility, you can invest in trucks and trailers to transport your clients to shows or veterinary appointments. This is usually an additional fee that can provide extra income during the show season, and you could offer your services to other horse owners in the area.

Professional Grooming

Horses need impeccable grooming for horse shows, and that’s where professional grooms come in. Children and busy adults may lack the time or knowledge to groom their own horses properly and pay for professional grooming services.

Professional grooming may include specific tasks like braiding the mane and tail for shows, but some grooms perform the entire process of bathing, brushing, picking out hooves, and tacking up, only to hand the horse off to the rider. Then, when the ride is complete, the rider hands the horse back to the groom to be walked, untacked, and rinsed off before being put away.

Grooms may also have the responsibility of cleaning tack, packing supplies for a horse show, and assisting riders with barn chores at the showgrounds.

Being a professional groom has many avenues. You can be a dedicated groom for one rider and their horse – or horses – or you can work with clients within the same facility. Owners of riding stables can offer grooming services, either themselves or from hired support staff.

Finally, there’s the option to run your own grooming business. You may begin by grooming on your own, but you can scale your business by taking on more grooms to handle clients and adopting a more managerial role.

Horse Stable Cleaning Services

The chores can add up in a facility with multiple horses. Not all boarding facility owners want to handle all the chores themselves, so they hire horse stable cleaning services.

Horse stable cleaning services may include a variety of tasks, such as mucking stalls, power-washing walls, sweeping or power-washing aisleways, racking arenas, spreading manure, scrubbing feed and water buckets, and tidying up the feed room or tack room.

Similar to grooming, you can take on work for specific clients in one facility or offer your services to multiple facilities. As you grow, you can take on more clients by hiring employees and operating a full cleaning service.

Pasture and Facility Care

Horse turnout and the grounds of a stable need maintenance like anything else. If you enjoy handiwork and landscaping, pasture and facility care is an in-demand service.

Busy stable owners are inclined to pay for professionals to maintain their outdoor areas. Some of the tasks may include inspecting and fixing turnout fences, removing weeds, dragging pasture, removing rocks, and filling holes.

Within the facility, this service may include identifying and repairing plumbing problems, fixing damaged stalls or doors, replacing worn fittings, and fixing cracked or damaged concrete. You may also be asked to update or install features or amenities.

Stable maintenance workers may stay at one facility or they may offer services to multiple facilities in the area. As with grooming and stable chores, you can expand by hiring more people to serve more clients.

Manure Removal Services

Facilities that have neither the land nor equipment to spread manure may hire a manure removal service to take care of waste. This is out of the purview of most local waste management services.

Manure can pile up quickly, so manure removal services are a must for both residential and commercial horse facilities. You can provide regular pickup or on-call pickup to haul manure away.

Along with the business requirements, waste removal may require additional state and local licensing or permits.

A tack shop can be a viable business on its own or a valuable revenue stream for a boarding or riding stable. This is essentially a retail store, so you have plenty of options for how to approach it.

Ultimately, it depends on your clientele. Boutique tack shops with high-end products and branded merchandise can do very well with brand loyalty, while a large and diverse tack shop offers a range of products to suit everyone.

You could also offer used or consignment pieces, such as used saddles and pre-owned show jackets or boots, to help clients save on products and give their old stuff new life.

In addition, you can travel to nearby shows with just a few limited necessities. It’s inevitable that a rider will forget a ratcatcher, hoof pick, or hair ribbon, causing a panic for their parents. Having these basic essentials in stock at the showgrounds almost guarantees sales and builds your brand over time.

What to Consider When Starting a Business in the Equestrian Industry

Like any business, starting an equestrian business is a big undertaking. There’s a lot to consider before you make the leap. You have to act like a business owner, not a horse enthusiast .

Time Commitment

Small business owners work 50 or 60 hours a week . You may be excited at the idea of spending your day around horses, but remember that a lot of the work involved in running an equestrian business won’t actually be spent on the horses.

An equestrian business is still a business. Much of your time will be spent handling work that’s more or less the same with every business – accounting, marketing, etc. Unless you hire or outsource that work, it falls on you.

Then you also have to take on the actual horse stuff. If you open a boarding facility, that means mucking stalls, feeding horses multiple times a day, and filling water buckets. If you open a big facility with 50 horses and minimal staff, that’s a lot of hours and balancing your workload and personal life.

Equestrian businesses need multiple contracts to operate legally. Without them, you and your business may not be protected.

Operating agreements: LLCs need to have operating agreements that determine how distributions and losses are shared, how the business is managed and taxed, and more.

Website contracts: If you have a website, you need these contracts for legal protection – a privacy policy, terms and conditions, and clear information at the footer that links the aforementioned contracts, your copyright symbol, and a disclaimer.

Equestrian businesses may need additional contracts, including:

• Boarding agreement: If you’re boarding animals on your property, you must have a boarding agreement with the animal’s owner that details the timeframe and general terms of the arrangement.
• Liability release waivers: If you allow anyone to ride your horse, whether one time or for a lease or lesson agreement, you need a liability release waiver to protect you in the event of an accident.
• Bill of sale: If you’re selling animals, a bill of sale document is necessary to outline the details of the terms of purchase, the animal’s health, and the terms of the transfer. This is essentially a proof of purchase.
• Breeding contract: If you’re breeding, you need a stringent breeding contract that includes the parties involved, the time of breeding, the fees and expenses, any health or condition guarantees, rebreeding rights, liability clauses, and more.
• Transport: Transporting a horse is a big liability issue. Accidents can occur on the road or a horse can be stolen, and the business needs a contract for transporting animals for someone else.
• Employment: If you’re hiring support staff for your equestrian business, you will need employment contracts for each type of employee.

Cities and counties plan to shape the character of communities with zoning and regulations. There’s no requirement for local governments to have similar land use ordinances or planning processes, even in the same county, so it’s important for you to contact the local offices to determine the laws and ordinances that apply to a commercial equestrian property.

Local zoning ordinances and codes can apply to everything from boarding and riding horses to providing lessons and designing and building stables and buildings. Avoid headaches in the future by doing your due diligence before you get the ball rolling on your business.

Once you’ve mapped out the ideas, starting your business is much simpler. The specifics will depend on the type of business you choose, but here are general steps to starting your own equestrian business.

Know Your Market

It’s not enough to just love horses to start an equestrian business. You have to know who your clients are. Without that, you could approach everything the wrong way for the people you’re trying to attract, and you’re dead in the water.

Marketing research is crucial before starting a business. Before you begin with a business plan, marketing strategy, or shopping for horse property, do some research. Check out comparable businesses in the area and see how they operate and what their clients expect, so you can plan accordingly.

Find Your Profit Motive

Often, people get into horse businesses because they’re pursuing a passion. While that’s not entirely wrong, it’s vital to pursue a business for its profit motive. If you want to “do what you love” without concern for money, you’re talking about a hobby, not a business.

A profit motive is the desire for financial gain and maximized profits. This is motivation to innovate and take risks for economic gain.

Worse yet, if you can’t find a realistic way that you can make money with your equestrian business, you may be viewed by the IRS as a tax shelter. You could be subject to an audit, and if you can’t show how you’ll earn a profit, then it’s a hobby and things can get messy with penalties and interest. Always find a profit motive and you can avoid this hassle.

Develop a Business Plan

Many business owners venture into business without a solid business plan. The business plan may be the most important step, since this can show you if your business is destined to succeed or fail.

The business plan doesn’t need to be overly formal or designed like a presentation with fancy graphics and statistics – unless you’re looking for a significant loan or investor. It’s essentially for you to analyze your business idea, costs, and revenue to see if you can create a profitable business.

Do your research and include information like:

• The size and location of the market
• The competition
• Fixed and variable costs
• Market availability

With these numbers, you can forecast how much money your business can make against your expenses each week, month, and year.

Structure Your Business

All businesses need a well-formed business plan that includes market analysis and evaluation of income potential and likely expenses. Is there a need for your business in the current market? Will you have potential clients? Can you make your business profitable?

The more research and effort you put into this in the beginning, the more stability and security you’ll have moving forward.

You also need to determine what business structure is the best for your needs and protects your personal interests from liability. Whether you choose a sole proprietorship, LLC, or corporation will also determine the record-keeping and tax requirements .

Know Your Insurance Requirements

Whether it’s required in your state or not, insurance is a key component of an equestrian business. Horses and equestrian activities are inherently dangerous, and you may need multiple types of insurance to make sure you’re covered.

General liability insurance, or small business liability insurance, provides coverage for claims that result from normal business activities. You may also need commercial property insurance, which protects your business’s physical assets, such as a stable, from fire, burst pipes, storms, vandalism, theft, and explosions.

In addition, you may need liability release waivers . These agreements outline the risk the rider is taking when they ride your horse or ride in your facility. Depending on the type of business you have, these liability waivers may be general or specific to the activity.

Determine Fixed and Variable Costs

At the end of the day, businesses need to be profitable to succeed. Being profitable means you’ve covered all your expenses and you have money left over to pay yourself and continue putting money into the business.

To start, list all the expenses your business will have. This may be trickier than you think, especially when you consider fixed costs and variable costs.

Fixed costs will remain the same regardless of how much you produce. These include your rental or mortgage payments and insurance. Variable costs are costs that change based on the amount of output you produce. So, if you have a boarding facility and bring in more horses, the expenses you’d see change would include labor costs and feed, hay, and water costs.

Identify the Unique Selling Proposition

A lot of businesses fail because they can’t differentiate themselves from their competitors enough to get a foothold in the market. Whatever your business idea is, you have to find a way to be different.

With an equestrian facility, that can be more challenging. You could be surrounded by competitors, so think about what you have to offer that’s different. Maybe your stable caters to a different discipline, or you offer a more down-to-earth alternative to the snobbier, upscale facilities nearby.

Come up with reasons that your company is different from everyone else and why a client should give you their business. Once you have this, it can inform the rest of your marketing strategy.

Develop a Marketing and Branding Strategy

Marketing is a must in the modern business world. No matter how great your equestrian business is , without marketing, no one will know about it.

Marketing strategy starts with a goal. Sure, your overarching goal is to make money, but focus on goals for your campaigns like boosting brand awareness, getting more prospects, or increasing your audience on social media pages.

Then, consider your audience. Think about who they are and what appeals to them. If your audience is diverse, you can segment it and deliver more targeted campaigns. For example, you might take a different approach to attract kids for riding lessons compared to their parents. Creating segments ensures that you’re keeping your message tailored to the audience.

From there, develop ideas for your campaigns that reflect your brand. Start small with just a few marketing channels, such as email, social media, and paid search ads. Test and tweak your campaigns regularly to determine what’s working and find areas for improvement. Once you get the hang of it, you can scale your campaigns to more channels and broader audiences.

Also, consider marketing more than just your business. If you have a riding stable, think about marketing your instructor or trainer as well as the facility. If you’re breeding, you’ll need marketing campaigns for your studs, mares, and foals.

Once you have your business up and running, raking in clients, you can think about how you can grow your business to become more profitable.

Content Marketing

Content is a very useful and versatile tool in the equestrian industry. Horse owners and riders are always looking for information, and there’s so much to choose from.

You can promote content about your business, your background, and your employees. Some equestrian businesses are successful with highlighting professional riders or trainers in features, sharing stories about horses throughout history, or writing humorous articles about success and failure in the competition ring.

For niche businesses, the content can be a little narrower. For example, a professional grooming business could write content with tips and tricks for braiding, the new trends for horse show style, and guides for how to properly body clip a horse.

It’s important to be creative and understand what your audience is looking for. If you deal with beginner riders, it’s best to keep the content introductory and basic to support learning. If you’re working with high-level professionals, avoid simple topics like “how to tack up a horse.”

The way content promotes a business is by putting it in front of the audience in a less intrusive way than an ad. When a client searches for information in Google, such as “things to look for in a professional horse trainer,” they will see your content. If what they read offers value, they may seek out more content from you or look into your site and what you have to offer.

Over time, prospective clients come to view you as an authority. Then, when they need similar services, your business is top of mind.

Social Media

Virtually all consumers expect brands to be on social media, even an equestrian brand. Building an online following takes time and dedication, but it can have a significant impact on your sales and exposure.

Start by creating business accounts on the social media platforms that contain most of your audience. Share content regularly that’s appropriate for the platform, such as short video clips for TikTok and industry-focused articles on LinkedIn.

As people like or comment, be sure to interact with them and answer any questions they may have. You’ll increase the engagement of your followers, encouraging more shares and exposure to a larger audience.

Affiliate Marketing

Content not only benefits you with more authority and exposure, but it’s a wealth of opportunity for affiliate marketing. This type of marketing is performance-based and rewards businesses for traffic or leads they generate.

For an equestrian business, you have numerous products that you can review and promote in your content. For example, talking about a new hoof oil in a blog post about hoof care encourages visitors to click on the link, driving them to the affiliate site and earning you money in the process.

Email Marketing

Despite the rise of other marketing techniques, email marketing is still one of the most effective ways to get your message out there. People subscribe to an email list, so you have the benefit of an audience you already know is interested in what you have to share.

Your email campaigns can include promoted content or helpful tips and tricks for your clients, product recommendations, event reminders, updates, and more – it all depends on your business model.

To gain subscribers, create gated content for your site. This is high-value, downloadable content that subscribers can access by providing their name and email. It has to be something they can’t get elsewhere, however, such as an in-depth interview or case study.

Referral Program

Referral programs work a lot like word-of-mouth recommendations. You set up a program that incentivizes your clients or non-competing businesses to refer people from their network to your business. In exchange, one of both clients get a free gift, discount, or special perk.

While the incentive doesn’t have to be expensive, it must be worthwhile. Branded merchandise, a discount on services for the referrer and the referred, or gift cards are all good incentives to recommend your business to other people.

Diversification

Equestrian businesses are subject to the state of the economy. As a luxury, horses, riding lessons, or extra services may be among the first to leave out of the budget for many people in tight times.

Diversifying or expanding your services creates more opportunities for income streams and gives you some cushion for lean periods. Boarding facilities have a wealth of options to diversify, including offering short-term boarding, renting the facility for parties or events, offering transport for shows, or adding grooming or training services to the offer.

You can get creative when coming up with new income streams. Selling equestrian products, creating your own branded merchandise, affiliate marketing, leasing horses, and horse photography are all options to inspire you.

At some point, your business will grow past the point where you have time to handle everything on your own. You may want that control, but that’s a fast track to burnout and making mistakes that can harm your reputation in the long run.

If things seem overwhelming, consider hiring to support your business’s growth. You can start with stable hands or other support staff, or keep those hands-on activities yourself and outsource your boring business tasks like accounting and marketing.

With businesses like professional grooming or facility maintenance, you can grow easily and accommodate more clients by hiring employees to take on your overflow work. The biggest aspect of this is maintaining your standards across the board. You spent a lot of time building your reputation and client loyalty, so make sure your employees are up to those same standards.

Is Your Business Scalable?

Some equestrian businesses are scalable and others are not. The idea of scalability is that whether your fixed costs are high or low, if you can add a significant number of customers without increasing your costs proportionally, the business is scalable and becomes more profitable as it grows.

Boarding, training, instruction, and breeding are not the most scalable businesses. As you take on more clients, your costs for food, water, etc. will generally increase proportionally. Conversely, a boarding facility can offset these costs by having more paying tenants, which cover more of the cost of the rent or mortgage on the facility itself.

Consider if your business is scalable, and if it isn’t, how can you diversify what you offer to gain more growth potential?

Frequently Asked Questions About Starting a Business in the Equestrian Industry

Is the horse business profitable.

With the right planning and research, any business can be profitable. It’s less about horses than it is about being prepared and educated to develop the most successful business plan.

Where Can I Find Equestrian Businesses for Sale?

Real estate listings and websites often provide both hobby and commercial equestrian properties. You can search anywhere you’re looking to go and compare the information about the land size, existing structures, zoning, taxes, and more.

Are There Equestrian Business Awards?

The United Kingdom has Equestrian Business Awards to recognize small equestrian businesses and their care for animals and contributions to the economy. These awards include veterinarians, farriers, equine dentists, instructors, riding schools, grooms, and any other equine professional.

What Should You Know Before Buying an Equestrian Business?

Few types of property or businesses require as much knowledge as those related to horses. Before you buy an equestrian business, be sure to thoroughly evaluate the property and land to ensure it’s efficient and safe for horses to avoid future headaches.

Are There Equestrian Business Apps?

There are plenty of apps designed to help equestrian business owners succeed. Apps like CRIO help facility owners and managers track boarding, training, and breeding, while the Horse Report System offers performance tracking for equine athletes to monitor body condition, training, and health. Stable Secretary is a helpful tool for barn management and tracks horse health sheets, breeding records, and payments.

What Is the Definition of an Equestrian Business?

An equestrian business is a broad term that includes businesses that focus on horses, horsemanship, horse care, and equestrian sports or leisure activities.

Starting and running a business is no small feat. When you’re starting an equestrian business, you have the added legalities, care, and challenges of horses added to the mix. This may all seem overwhelming, but as long as you have the passion, y ou can make your equestrian business a reality !

Mentioned in This Post

• The Contracts Equestrian Businesses Need
• How Equine Liability Waivers Protect Your Equestrian Business

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Turn Your Horse Passion into a Profitable Business

The equine industry is a diverse and vibrant sector, offering numerous opportunities for those of you who want to turn your horse passion into a profitable business. From boarding and training to specialized health services and breeding, each avenue offers unique challenges and rewards. In this comprehensive guide, I’ll delve into various horse-related business models, discussing their advantages, drawbacks, barriers to entry, marketing, and financial aspects in detail.

1. Boarding Horses

• Steady Revenue Stream: Boarding stables provide a consistent source of income, as horse owners pay monthly fees for the care and shelter of their horses.
• Community Building: Operating a boarding facility allows you to build a community of horse enthusiasts, leading to networking opportunities and potential partnerships.
• High Overhead Costs: The initial investment for land, stables, and equipment can be substantial. Ongoing expenses include feed, bedding, utilities, and staff salaries.
• Time-Intensive: Providing daily care for multiple horses is labor-intensive and requires a significant time commitment.
• Excessive Owner Requests: Owners tend to make specific individual requests that sometimes are labor intensive or contradictory to your policies.

Barriers to Entry:

• Capital Investment: Acquiring suitable land and building stables demands a considerable financial outlay.
• Expertise in Horse Care: Knowledge of equine health, nutrition, and general care is essential to run a successful boarding business.

Financials:

• Income Potential: Boarding fees vary based on location, facilities, and services offered. On average, boarding one horse can bring in $200 to $800 per month.
• Digital Presence: Develop a website showcasing your facilities, services, and testimonials. Utilize SEO strategies to improve visibility.
• Social Media Engagement: Regularly post engaging content on platforms like Instagram and Facebook, highlighting daily activities and special events.
• Local Partnerships: Collaborate with local equestrian clubs and vets to gain referrals.
• Open Days: Host open days or free clinics to attract potential clients.

Many people especially those who say, “I’m just going to board a couple of horses to offset my expenses”, soon realize how labor-intensive and demanding this type of business this is. Feeding your own 1 or 2 horses twice a day every day is one thing but then when you and 3 or 4 more it quickly starts to feel like a job that draws your time away from spending time with your own horses. You could hire someone to do the feeding and cleaning up after but after you pay them out of the little bit of board money you are receiving and listen to the owner complaining about how the work is done you start to question if boarding a couple of horses is really worth it.

On the other hand, if you have enough land to raise those boarding numbers to a level that brings in enough money to hire 1 full-time person and you treat boarding like a real business with policies, a business plan with projected financials, and everything else that a real business should have then a boarding business might be worth your time. To do this requires a much higher level of commitment from you.

2. Starting Horses and Basic Training

• High Demand: Many horse owners seek professional training for their horses, whether for basic manners, specific disciplines, or behavioral issues.
• Personal Fulfillment: Training horses can be incredibly rewarding, as it involves developing a deep understanding and connection with the animals.
• Variable Income: Earnings can fluctuate based on the number of clients and the types of training services offered.
• Physical Risk: Working closely with horses carries a risk of injury, which can impact your ability to work and earn. If you get hurt working with 1 horse, you are also not able to work with the rest of the horses.
• Skill and Experience: A high level of expertise in horse behavior, training techniques, and various equestrian disciplines is crucial.
• Building a Client Base: Reputation and word-of-mouth referrals are vital, and can take time to develop.
• Earning Potential: Charges for training services can range from $30 to $100 per hour. Full training packages might cost significantly more.
• Showcasing Success: Create before-and-after videos of training sessions to demonstrate your skills on YouTube and social media.
• Workshops and Clinics: Organize workshops for local horse owners to showcase your expertise.
• Client Testimonials: Use client testimonials in your marketing materials and on your website.
• Networking: Attend horse shows and events to network with potential clients.

Nearly anyone can make a post on social media claiming to be a trainer so the barriers to entry can be low leading but this also leads to low-quality services. You have to have something that sets you apart as providing a quality service. This is why training under a well-known trainer can be beneficial. A successful show career can also be beneficial to set you apart.

If you don’t have any of these and are thinking about providing a service starting horses remember that this business model often leads to injuries which makes doing this type of business long-term nearly impossible for the same reasons I discussed in the article, How Aging Influences Our Horseback Riding and Showing . You should have a plan to pivot your business in another direction as soon as you can.

3. Equine Health Services

• Specialized Niche: Services like equine massage, chiropractic care, and acupuncture cater to a specific market, often with less competition.
• Growing Awareness: There’s an increasing recognition of the importance of holistic care in equine health, expanding the potential client base.
• Certification Requirements: Practitioners must undergo specialized training and obtain certification, which can be time-consuming and costly.
• Market Limitations: Not all horse owners are aware of these services or willing to invest in them.
• Understanding Benefits: Many owners in certain areas don’t understand the benefits of some of these types of care. You may need to inform potential clients about the advantages similar to those demonstrated in the article “ Transforming Crooked to Confident ,” illustrating how such benefits can positively impact their horses.
• Educational Investment: Gaining the necessary qualifications and skills requires both time and money.
• Equipment and Supplies: Starting an equine health service may require purchasing specialized equipment.
• Service Fees: Depending on the service and region, practitioners can charge $50 to $150 per session.
• Educational Content: Produce informative content on horse health and wellness, sharing it on social media and a dedicated blog.
• Collaborations: Partner with horse trainers and boarding facilities to offer your services.
• Workshops: Conduct workshops and seminars on equine health.
• Targeted Advertising: Use targeted online advertising to reach horse owners in your area.

Because of the certifications required for this type of business, the barriers to entry are higher which generally means less competition and higher prices. This type of equine business is a great way to turn your horse passion into a profitable business but this type of business takes long-term planning with a high outlay of money in the beginning.

The rewards of being in this type of business can be high but you must do your homework and planning. All of that time and expense getting the certifications only to learn that your market does not support that type of business is a hard and expensive lesson to learn.

4. Horse Hauling

• Flexible Business Model: Horse hauling can be operated on a part-time or full-time basis, catering to local or long-distance needs.
• Broad Clientele: Services are required for various purposes, including shows, vet visits, and relocations.
• Significant Vehicle Investment: A reliable, well-maintained truck and trailer are essential, representing a substantial initial investment.
• Insurance and Liability: Transporting live animals requires specific insurance coverage, adding to the operational costs.
• Licensing and Regulations: A commercial driver’s license and knowledge of transportation regulations are necessary.
• Vehicle Maintenance: Regular upkeep of transport vehicles is crucial for safety and reliability.
• Charges: Hauling fees typically range from $0.75 to $2.00 per mile, or a flat rate for shorter distances.
• Website and SEO: Create a professional website with an emphasis on SEO to attract organic traffic.
• Local Advertising: Advertise in local equestrian magazines and community boards.
• Referral Program: Implement a referral program for clients who recommend your services.
• Social Proof: Share customer reviews and testimonials on your website and social media.

Many people who go into this type of business underestimate their overhead expenses. Your truck and trailer have a finite life span and you have to build in the cost to replace those every few years. You might already have an appropriate truck and trailer and think, “I can do it cheaper”. Only to realize you have worn out your truck and trailer and did not charge enough to replace them.

Many people start this type of business excited to travel and see different parts of the country only to realize they have a schedule they have to keep and the interstate is all you get to see and that all looks the same. Then adding on top of that being out of town a lot and missing your kid’s events this type of business becomes hard to stay doing long term.

5. Training High Level Show Horses

• High Earning Potential: Successful show horses can command high prices, both in winnings and in training fees.
• Industry Prestige: Achieving success in the show circuit can significantly enhance your reputation and attract high-profile clients.
• Intensive Training Required: Breaking and training show horses demands a high level of skill, patience, and dedication.
• Competitive Nature: The show horse industry is highly competitive, with no guarantees of success.
• What Have You Done Recently: In this business you are only as good as your last show.
• Experience and Skill: Extensive experience in handling, training, and competing with horses is essential.
• Industry Connections: Having a network within the show circuit can be a significant advantage.
• Income Variability: Earnings can vary widely, with top trainers and competitors earning substantial sums per horse.

Marketing Plan:

• Showcase Achievements: Highlight your successes in shows on your website and social media.
• Sponsorship: Seek sponsorship opportunities at horse shows.
• Networking: Build relationships with breeders and other professionals in the industry.
• Quality Content: Create high-quality videos of training sessions and show performances for YouTube and social media.

To determine if you have a training program suited for this business model you should read, Learning from Struggles with ‘End on a Good Note’ & ‘Choose Your Battles’ . This article discusses a fundamental difference in this training program.

This business can bring high levels of notoriety and to some extent fame. Owners who are looking for this type of service only care about what you have done recently and the success is highly dependent on the quality of the horse that is sent to you. One off year of being less competitive and the quality of the horses sent to you the following year will be markedly lower.

The few people who make it in this type of business make it big but this is an, all your eggs in one basket, type of business. It’s like a junior high football player saying they are going to play in the NFL. Some make it but most don’t.

6. Horse Breeding

• Potential for High Returns: Selling well-bred foals or breeding stock can be highly profitable.
• Contributing to the Breed: Breeding offers the opportunity to improve and promote specific horse breeds.
• Long-Term Investment: Breeding requires patience, as it takes years to breed, raise, and train foals to the point of sale.
• Risks and Challenges: The breeding process can be unpredictable and fraught with financial risks.
• Breeding Knowledge: A deep understanding of genetics, horse conformation, and breed standards is crucial.
• Facility Requirements: Adequate space and facilities for breeding, foaling, and raising young horses are necessary.
• Sales Prices: Depending on the breed, lineage, and market demand, sales can range from a few thousand to several hundred thousand dollars per horse.
• Website Portfolio: Develop a comprehensive website showcasing your breeding program, lineage details, and success stories.
• Social Media Showcasing: Regularly post updates, photos, and videos of your horses, especially foals, on platforms like Instagram.
• Industry Events: Attend horse breeding shows and auctions to network and showcase your horses.
• Email Marketing: Keep potential buyers informed with regular newsletters featuring available horses and breeding news.

Everyone hears about the yearling that sells for a record price but you never hear about all those that are sold at a loss. This is a high-stakes business, with lots of capital investment in mares, breeding, and care hoping that you get a baby that will give you a return on your investment. There are many variables that you have little or no control over.

On the other side, every horse owner needs to experience the excitement of breeding their mare and raising at least 1 foal. This is great but it is not a business until you can demonstrate that you can replicate the process and make it profitable.

7. Horse Sales and Flipping

• Quick Turnaround: Buying, training, and selling horses can offer faster financial returns compared to other equine businesses.
• Market Adaptability: This business model allows for flexibility in responding to market trends and demands.
• Market Knowledge: A thorough understanding of the equine market and trends is essential for success.
• Financial Risk: There is a significant risk of financial loss if horses do not sell or incur unexpected expenses.
• Initial Capital: Purchasing horses for resale requires a significant upfront investment.
• Marketing and Sales Skills: Effective marketing strategies and sales skills are crucial to successfully flipping horses.
• Profit Margins: These vary widely and depend on the purchase price, training, and eventual sale price of the horses.
• Online Listings: List horses on popular equestrian sales websites with professional photos and detailed descriptions.
• Social Media Marketing: Use platforms like Facebook and Instagram to showcase horses, sharing their progress and training highlights.
• Video Showcases: Create compelling video content showing the horses’ skills and temperament.
• Networking: Build relationships with trainers and riders who might refer buyers or provide leads.

You can sell a great horse but if the buyer can not ride or has poor judgement in choosing a horse that fits their riding style it will be your fault for “selling a bad horse”. Buyers never take responsibility for their mistakes they always blame the seller. People who have this type of business usually have a poor reputation sometimes deserved, but often not.

8. Horse Riding Lessons

• High Demand: There’s a consistent demand for quality horse riding lessons. People of all ages seek to learn horseback riding for recreation, competition, or personal fulfillment.
• Emotional Rewards: Teaching horse riding can be immensely satisfying. Witnessing the progress and joy in your students can provide a deep sense of accomplishment.
• Passion-Driven Career: If you love horses, this career allows you to combine your passion with your profession.
• Income Variability: The income from teaching horse riding can fluctuate with seasons, the number of students, and economic factors.
• Physical Demands: The job is physically demanding and requires long hours outdoors, often in varying weather conditions.
• Risk of Injury: Working with horses always carries the risk of injury, which can affect your ability to teach.
• Poor Working Hours:  Often the bulk of the lessons will be after school, on weekends and holidays.
• Insurance: Insurance can be high. Certifications help but you will see a large portion of your income going to insurance.
• Lesson Horses: Maintaining a string of quality lesson horses is expensive.
• Certifications and Training: Professional certifications from recognized equestrian organizations can be necessary. This requires time, training, and often significant financial investment.
• Facility and Equipment: A suitable facility with safe, well-maintained riding areas and equipment is essential. This can be a substantial initial cost.
• Income Sources: Revenue primarily comes from lesson fees, which can range from $30 to $75 per hour, depending on your location and expertise. Offering group lessons, clinics, or hosting events can provide additional income.
• Expenses: Costs include facility maintenance, horse care, insurance, marketing, and possibly staff salaries.
• Profit Margins: Profitability depends on managing expenses while maintaining a steady stream of students.

Marketing Strategies:

• Digital Presence: Establish a strong online presence through a professional website and active social media profiles. Share engaging content, student testimonials, and success stories.
• Community Engagement: Participate in local events, horse shows, and community activities to build your network and attract students.
• Referral Programs: Encourage word-of-mouth marketing by offering incentives for referrals from current students.
• Collaborations: Partner with local schools, equestrian clubs, and other related businesses to broaden your reach.

Giving lessons can be a good way to start in a horse-related business and some instructors make a good long-term living doing it but this business is not for everyone. Often the cons begin to outweigh the pros.

9. Influencer in the Equine Industry

• Flexibility and Creative Freedom: As an influencer, you have the freedom to create content that aligns with your interests and expertise in the equine world.
• Low Start-Up Costs: Starting as an influencer primarily requires a good smartphone or camera and a stable internet connection.
• Potential for High Earnings: Successful influencers can earn substantial income through sponsorships, brand deals, and advertising.
• Building a Community: You have the opportunity to connect with like-minded individuals and build a community of horse enthusiasts.
• Easy To Do: This type of business often requires just documenting what you already do with your horses.
• Time-Consuming: Building a significant following requires consistent content creation and engagement, which can be time-consuming. This can take years.
• Unpredictable Income: Earnings can be irregular and depend heavily on securing sponsorships and brand deals.
• Market Saturation: Standing out in a crowded digital space can be challenging.
• Public Scrutiny: Influencers are often subject to public opinion and scrutiny, which can impact mental health.
• Technology: Successful influencers have a high level of understanding of the technology they use.
• Building a Following: Gaining a substantial and engaged follower base is crucial and can be challenging and time-consuming.
• Content Quality: High-quality, engaging, and original content is necessary to attract and retain followers.
• Industry Knowledge: A deep understanding of the equine industry is essential to provide valuable content.
• Income Sources: Earnings come from sponsored posts, affiliate marketing, brand partnerships, and potentially merchandise sales.
• Potential Earnings: Income varies widely. New influencers might earn only a few dollars per post, while established influencers can earn thousands.
• Content Strategy: Develop a content calendar focusing on various aspects of horse care, training tips, and personal equestrian experiences.
• Engagement: Actively engage with your audience through comments, live Q&A sessions, and community posts.
• Collaborations: Partner with equine brands for sponsored content.
• Consistency: Post content regularly to maintain and grow your follower base.

Many people start this type of business and then realize that it is a lot of work. It’s not just make a post and watch the money roll in. You have to build a following and then monetize that following. Offering videos for sale and virtual lessons are 2 of the ways to possibly monetize a following. The rewards can be high but it takes persistent hard work sometimes for years with little return.

10. YouTube Content Creator in the Equine Industry

• Wide Audience Reach: YouTube’s vast platform allows you to reach a global audience.
• Monetization Opportunities: Apart from ad revenue, there are opportunities for sponsorships, affiliate marketing, and merchandise sales.
• Creative Expression: YouTube provides a platform for diverse content, from educational videos to vlogs and training sessions.
• Community Building: You can engage with a community of subscribers who share your passion for horses.
• High Competition: Standing out on YouTube in the equine niche can be challenging due to competition.
• Consistent Content Requirement: Regular uploading of quality content is necessary to grow and maintain your audience.
• Initial Slow Growth: Building a substantial subscriber base often takes significant time and effort.
• Technical Skills: Basic video editing and production skills are required to create engaging content.
• Content Creation Skills: Skills in video editing, scripting, and production are necessary to produce appealing content.
• Equipment Investment: While starting with basic equipment is possible, higher-quality videos often require investment in better cameras, microphones, and editing software.
• SEO and Marketing Knowledge: Understanding YouTube SEO and marketing strategies is crucial for increasing video visibility.
• Income Sources: Revenue from YouTube ads, sponsorships, affiliate links, and merchandise.
• Potential Earnings: Earnings vary greatly. Smaller channels might earn a few hundred dollars per month, while larger channels can earn significantly more.
• Niche Content: Create content in a specific niche within the equine world, such as training tips, horse care, or equestrian lifestyle vlogs.
• SEO for YouTube: Optimize video titles, descriptions, and tags for SEO to increase visibility.
• Cross-Promotion: Promote your YouTube channel on other social media platforms.
• Community Engagement: Engage with viewers through comments, and consider creating content based on viewer requests.

Similar to an influence this type of business takes time to develop but if you stick with it, it can be a great way to turn your horse passion into a profitable business.

When you are deciding on how you want to structure your business you don’t have to pick just one but you need to have a business structure that makes sense together. For instance, a business where you show high-level horses and offer hauling may not work because of being home enough to work with the show horses. On the other hand, if you show high-level horses and offer professional services like massage or chiropractic, that could work together.

A big hurdle that many face when you turn your horse passion into a profitable business is treating it like a business and no longer a hobby. You should develop a full business plan with financials and projections, proper bookkeeping, and everything else that goes along with a business.

Embarking on a horse-related business venture requires not only a passion for horses but also a sound understanding of the industry, business acumen, and a willingness to face the challenges head-on. Each business model presents its own set of opportunities and obstacles. Success in the equine industry is multifaceted. Once you have settled on a specialty area for your equine business, the next step is to make it grow and thrive. The article, Building a Thriving Horse Training Business will help you with that.

My horse training journey has brought me from winning world titles to now trying to make every horse the best they can be and to help you to improve your equestrian knowledge.

4 thoughts on “Turn Your Horse Passion into a Profitable Business”

Great article! Very thorough.

Thank you for such insight into the different business opportunities. I’ve been asked to offer lessons. Finding one or two quality lesson horses is my challenge. Any suggestions ?

Thank you for the content. I would like to add that taking stock of the resources around you that will help your business is crucial. Feed stores, affordable hay, trails to ride, equestrian facilities, other equestrians with the same interest etc. etc. etc….

Great article thank you. I’ve been training horses and people for a years but just as a hobby, specializing in trailer loading. Your utube suggestion has perked my interest… might be interesting thank you

Comments are closed.

• How To Start A Horse Breeding Business

If you ask any entrepreneur, starting a business comes with its fair share of challenges.

Starting a horse breeding business requires a great deal of effort, dedication and most importantly passion .

If you're willing to put in the effort to build your own business, you're going to want to follow the critical steps to creating a successful brand.

We've created a guide that covers each step of the process - from making key financial decisions, to launching and marketing your business the right way, and tips/strategies on how to grow your business effectively.

Start A Horse Breeding Business ➜ starting costs $87.2K see all costs ➜ gross margin 82% time to build 300 days average product price $450 pros & cons 29 Pros & Cons see all ➜

💡 Introduction To Starting A Horse Breeding Business

Is starting a horse breeding business right for you.

There are many factors to consider when starting a horse breeding business.

We put together the main pros and cons for you here:

Pros of starting a horse breeding business

• Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

• Meaningful business connections

You never know who you will meet as a horse breeding business. This could be the start of an incredible business opportunity!

• High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

• High margins

The gross margins for your horse breeding business are typically around 82%, which is considerably high and allows you to grow your business and manage costs easily.

• Control of workload

With starting a horse breeding business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.

• Gain exposure and experience

This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!

• Unlimited income potential

With starting a horse breeding business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

• You are your own boss!

With starting a horse breeding business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!

• Predictable income stream

Your businesses income stream tends to be predictable based on the number of customers you have signed up. This makes financial planning and outlooks much more seamless!

• Higher likelihood of getting referrals

This business is all about referrals, which can be a a very impactful way to attract and retain customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.

• Location is everything!

When operating a physical storefront, the location often speaks for itself and serves as it's very own marketing tool! It's important to choose a location in a high traffic area so you can spark curiosity and get people through your door!

• Control your own destiny

Starting A Horse Breeding Business allows you to control every aspect of your life and make your own dreams come true every day.

• Greater Income Potential

With this business, the sky is the limit in regards to your income potential.

• You get to do something you truly love

With starting a horse breeding business, you get to put your energy into something you are truly passionate about! You'll find yourself devoting as much time and energy as possible into the business to make it successful.

• You establish yourself as an expert

With starting a horse breeding business, you establish yourself as an expert in your niche, which builds your credibility. In return, customers are more likely to trust you and refer you to other friends and family.

• Can build solid foundation of clients

It's unlikely you will have one-off customers as a horse breeding business. Typically, you have a solid foundation of clients that use your product and services regularly.

Cons of starting a horse breeding business

• Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

• Stressful work

This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.

• Niche Market

A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

• High overhead expenses

With starting a horse breeding business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

• Time commitment

With starting a horse breeding business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

• Difficult to build trust with your customer

With starting a horse breeding business, there can be minimal face-to-face interaction, which means it can be a lot more difficult to establish trust with your customers. You'll need to go the extra mile with your customer to grab their attention and business.

• Impatient customers

You may offer an engaging user experience for your customer, but customers expect a lot and may be impatient if they aren't pleased with your product or service.

• You might struggle financially (at first)!

If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It's important to adjust your lifestyle and set a plan for yourself so you don't find yourself in a stressful situation.

• Learning Curve

When you start your own business, you no longer have upper management to provide you with a playbook for your roles and responsibilities. You should know the ins and outs of every aspect of your business, as every decision will come down to you.

• Equipment Breakdowns

Over the years, your equipment can get damaged, break down, and may need repairs which can be expensive. It's important you prepare for these expenses and try to avoid damages/wear & tear as much as possible.

• Takes time to see results & make money

Results and revenue do not come overnight with a horse breeding business. Often times, it takes weeks, months or even years for your work to monetize.

• More challenging to earn passive income

It can be more of a challenge to make passive income in this business. Often times, the amount of revenue you bring in is limited by the amount of time you have in the day.

Big Players

• Paulick Report - Horse Racing News (304K Alexa Ranking)
• HORSEPROPERTIES.NET (331K Alexa Ranking)
• Reptile Breeder Game (627K Alexa Ranking)
• NewHorse.com (872K Alexa Ranking)
• Horse World Online (1.54M Alexa Ranking)

Small Players

• Besilu Collection (8.68M Alexa Ranking)
• Virgina Horse (8.56M Alexa Ranking)
• Breeding Andalusian Horses/Murrieta, CA (7.91M Alexa Ranking)
• Nanoli Stud – And Agricultural Farms (7.55M Alexa Ranking)
• AMHA (7.16M Alexa Ranking)

Search Interest

Let's take a look at the search trends for horse breeding over the last year:

How To Name Your Horse Breeding Business

It's important to find a catchy name for your horse breeding business so that you can stand out in your space.

Here are some general tips to consider when naming your horse breeding business

• Avoid hard to spell names: you want something easy to remember and easy to spell for your customers
• Conduct a search to see if others in the space have the same name
• Try not to pick a name that limits growth opportunities for your business (ie. if you decide to expand into other product lines)
• As soon as you have an idea (or ideas) of a few names that you love, register the domain name(s) as soon as possible!

Why is naming your horse breeding business so important?

The name of your business will forever play a role in:

• Your customers first impression
• Your businesses identity
• The power behind the type of customer your brand attracts
• If you're memorable or not

It's important to verify that the domain name is available for your horse breeding business.

You can search domain availability here:

Find a domain starting at $0.88

powered by Namecheap

Although .com names are the most common and easiest to remember, there are other options if your .com domain name is not available. Depending on your audience, it may not matter as much as you think.

It's also important to thoroughly check if social media handles are available.

As soon as you resonate with a name (or names), secure the domain and SM handles as soon as possible to ensure they don't get taken.

Here's some inspiration for naming your horse breeding business:

• Procreation Pro check availability
• Sawhorse Pro check availability
• Simple Mating check availability
• Handsome Knight check availability
• FinestBreed check availability
• The Dark Junk check availability
• Yellow check availability
• Favorite Knight check availability
• Reproduced Collective check availability
• Reprographic Replica check availability
• YellowHorse check availability
• Splendid Buck Trading Co check availability
• Arabian Multiply check availability
• The Lesser check availability
• Carse Horse check availability
• DigitalReproduction check availability
• Spanish Half Breed Pro check availability
• ExactReproduction check availability
• DistinctiveBreed check availability
• ValuableHorse check availability
• Yellow Sawhorse Pro check availability
• Artificial Procreation check availability
• The Limited check availability
• Pers Horse check availability
• The Extra check availability
• Dark check availability
• VisualReproduction check availability
• Handsome Horseback check availability
• Lame Knight Spot check availability
• Big Junk Place check availability
• Improved Cover Place check availability
• The Mere Breeding check availability
• Purpose check availability
• The Improved Strain check availability
• Lame Sawbuck Trading Co check availability
• The Six Diacetyl Morphine check availability
• The Thoroughbred check availability
• Yellow Diacetyl Morphine Pro check availability
• Purpose Spawn Co check availability
• Rapid Replicating check availability
• Diacetyl Morphine Place check availability
• Parthenogenetic Reproductive Group check availability
• BestHorse check availability
• Realistic Reproducing check availability
• Curious Spawn Spot check availability
• Mere Fecundity Place check availability
• Cross Species Place check availability
• The Natural Replication check availability
• Graduate nurse Horse check availability
• The Ancient check availability
• The Four Knight check availability
• The Handsome check availability
• The Favourite Cavalry check availability
• PhotographicReproduction check availability
• The Rapid check availability
• Separate Species Spot check availability
• Arabian Half Breed Pro check availability
• FacsimileReproduction check availability
• Huge Horse Drawn check availability
• Junk Collective check availability
• NobleHorse check availability
• Favorite Sawbuck Co check availability
• Single Sawbuck check availability
• The Unauthorized check availability
• Protection Reproduction check availability
• The Continuous check availability
• SystematicReproduction check availability
• Popular Stock Trading Co check availability
• Splendid Sawbuck Trading Co check availability
• Satisfactory check availability
• Spare Buck Spot check availability
• The Spirited Knight check availability
• Huge Hero check availability
• One Buck Spot check availability
• The Favourite check availability
• Reprographic Rendering check availability
• Free verse Horse check availability
• Finest check availability
• Realistic Replicating check availability
• The Noble check availability
• Huge Horsepower check availability
• The Distinct check availability
• The Seasonal Replication check availability
• The Spanish Junk check availability
• SpiritedHorse check availability
• Genuine Multiply Trading Co check availability
• Tierce Horse check availability
• Continued Reproductive Group check availability
• The Poor check availability
• The Sturdy check availability
• Irregular check availability
• Accurate Propagation check availability
• Literal check availability
• The Good Knight check availability

How To Create A Slogan For Your Horse Breeding Business:

Slogans are a critical piece of your marketing and advertising strategy.

The role of your slogan is to help your customer understand the benefits of your product/service - so it's important to find a catchy and effective slogan name.

Often times, your slogan can even be more important than the name of your brand.

Here are 6 tips for creating a catchy slogan for your horse breeding business:

1. Keep it short, simple and avoid difficult words

A great rule of thumb is that your slogan should be under 10 words. This will make it easy for your customer to understand and remember.

2. Tell what you do and focus on what makes you different

There are a few different ways you can incorporate what makes your business special in your slogan:

• Explain the target customer you are catering your services towards
• What problem do you solve?
• How do you make other people, clients, or your employer look good?
• Do you make people more successful? How?

3. Be consistent

Chances are, if you're coming up with a slogan, you may already have your business name, logo, mission, branding etc.

It's important to create a slogan that is consistent with all of the above.

4. Ensure the longevity of your slogan

Times are changing quickly, and so are businesses.

When coming up with your slogan, you may want to consider creating something that is timeless and won't just fade with new trends.

5. Consider your audience

When finding a catchy slogan name, you'll want to make sure that this resonates across your entire audience.

It's possible that your slogan could make complete sense to your audience in Europe, but may not resonate with your US audience.

6. Get feedback!

This is one of the easiest ways to know if your slogan will be perceived well, and a step that a lot of brands drop the ball on.

Ask friends, family, strangers, and most importantly, those that are considered to be in your target market.

Here's some inspiration for coming up with a slogan for your horse breeding business:

• Dressage Is What We Do
• Best Breed, We Are Here
• Half The Breed, All The Taste.
• Exceedingly Good Reproduction.
• Horse Will Make You Feel Better.
• Horse Works Like Magic.
• Fine Junk, Fine Sawbuck
• Monsieur, With This Breed You Are Really Spoiling Us.
• It's A Beautiful Horse.
• From Nonmechanical To Nonhuman
• Horse With The Less Fattening Centres.
• The Best Reproduction Under One Roof.
• Horse Beat.
• The Joy Of Reproduction.
• Work Hard, Propagating Harder
• Horse Is Crazy Good.
• The Ideal Horse.
• From Unsocial To Herding
• From Melanize To Empty
• Make It A Breed Night.
• Live In Your Reproduction, Play In Ours.
• Horses With Third
• Don't Live A Little, Live A Breed.
• Reproductions With Order
• Amphimixi Is What We Do
• Reproduction Strikes Back.
• Break Me Off A Piece Of That Breed.
• Order A Reproduction Today.
• Old Steeds Are What We Do
• Free Reproduction.
• From Nonhuman To Somebody
• Breed. The Power On Your Side.
• Reprography Is What We Do
• Fine Coachdogs Are What We Do
• Good H, One Cavalry
• Breeds With Care
• Reproduction For The Masses.
• Ho Ho Ho, Green Horse.
• Building The Future
• Rare Nurture, Particular Type
• Breeds With Occurrence
• Breeds With Sand
• Natural Mating, Natural Conception
• Work Hard, Reproduce Harder
• Exact Reproduction, Built For You
• The Wonder Has A Name: Reproduction.
• Horse For People Who Want More.
• Different Breed, Built For You
• Horse To Play It Safe.
• Wooden Soups Are What We Do
• From Malevolent To Kind
• Mixed Vizslas Are What We Do
• Exact And Rapt
• Reproduction, The Problem Solver.
• Fine Horse, Done Right
• We Build Horse.
• Authentic Reproducing, Exact Procreation
• One Horse, Done Right
• Just Like Breed Used To Make.

Learn more about starting a horse breeding business :

Where to start?

-> How much does it cost to start a horse breeding business? -> Pros and cons of a horse breeding business

Need inspiration?

-> Other horse breeding business success stories -> Examples of established horse breeding business -> Marketing ideas for a horse breeding business -> Horse breeding business Instagram bios

Other resources

🎬 How To Start A Horse Breeding Business

How Much Does It Cost To Start A Horse Breeding Business

If you are planning to start a horse breeding business, the costs are relatively low. This, of course, depends on if you decide to start the business with lean expenses or bringing in a large team and spending more money.

We’ve outlined two common scenarios for “pre-opening” costs of starting a horse breeding business and outline the costs you should expect for each:

• The estimated minimum starting cost = $62
• The estimated maximum starting cost = $174,186

Raising Money For Your Horse Breeding Business

Here are the most common ways to raise money for your horse breeding business:

Business Accelerator

Accelerators are organizations that offer a range of support and funding opportunities for startups.

Typically, this means they help enroll startups in programs that offer mentorship, office space, and resources to grow the business.

These programs are typically 3-4 months and involve intense education and mentorship - most importantly, the startups also offered capital and investment in return for equity.

Here are some of the most popular and well-known startup accelerators in the U.S:

• YCombinator
• 500 Startups

Here are some tips on how to get into an accelerator program:

• Have an MVP (Minimal Viable Product) in place
• Make sure you have actual customers and an overview of how your business is doing (revenue, site traffic, growth metrics)
• Build a team
• Crush your interview - this is a critical piece in the process. Know your business and metrics inside out and most importantly, be able to portray what makes it so unique.

VC funding is a traditional and long process, but an effective way to raise money for your business.

The term "VC funding" refers to venture capital firms investing in businesses in exchange for equity.

The VC's (venture capitalists) are an individual or small group investing in your business and typically require substantial ownership of the business, with the hope of seeing a return on their investment.

VC's are typically the best approach for businesses with high startup costs - where it would be very difficult to raise the money on your own or through a loan.

When deciding whether to take this approach, it's important that you have a few things in place first, and know what you're getting yourself into:

Determine if your business is ready

Having an idea is not enough to get VC funding.

Typically, VC's will check to make sure you have these things in place prior to closing any deal:

• An MVP (Minimal Viable Product)
• A founding team with all proper documents in place (articles of organization, business formation)
• A validated idea with actual customers buying your product/service

Get everything in place and build a pitch deck

A VC individual or firm will be expecting a fine-tuned presentation that gives an overview of your business.

Here's what you should consider including in your pitch deck:

• Management team, their previous experience + current roles in the business
• Market challenge and solution
• Company financials - including a P&L statement, cash flow statement, and projections
• Company progress
• Investment amount - how much do you need and why?

Research the right VC to fund your business

Research the types of VC investors out there and what niche they focus on.

Then, put together a list of target VC's you want to approach and your strategy around setting up meetings.

Be sure you have everything in place (as discussed above) before setting up any meeting!

Make sure the terms and expectations are right for your business

Committing to VC funding is a big deal and a decision that should not be made lightly.

Although the money and experience from VC's can help your business quickly grow, you are also giving away a stake in the company, and the money comes with strings attached.

Be sure you do your due diligence in finding the right investor - one that truly believes in the growth and success of your business.

Crowdfunding

For your horse breeding business, a common way to raise money is through crowdfunding.

So, what does it mean to crowdfund your small business?

Crowdfunding refers to funding a project through many individual investors.

Here are some items to keep in mind when planning your campaign:

• Sell more than just your product. Sell your passion, your vision, and your story.
• Be real. Give your community honest details about your product.
• Treat your audience as your friends (not just potential customers)
• Put together a great presentation - it will attract people quicker.

To launch a successful crowdfunding campaign, you first need to select the type of crowdfunding platform to host your campaign.

Here are the most popular crowdfunding platforms to raise money on:

Kickstarter

Funding platform for creative projects.

• Pricing: Freemium
• Twitter: @kickstarter
• Website: kickstarter.com

Businesses using Kickstarter:

90 successful businesses are using Kickstarter ➜

Get Kickstarter ➜

Crowdfunding platform for innovations in tech and design.

• Twitter: @Indiegogo
• Website: indiegogo.com

Businesses using Indiegogo:

34 successful businesses are using Indiegogo ➜

Get Indiegogo ➜

StartEngine

Crowdfunding platform that has helped more than 350 companies raise $175M+ from a community of over 250,000 prospective investors.

• Pricing: Free
• Twitter: @StartEngineLA
• Website: startengine.com

Businesses using StartEngine:

Get StartEngine ➜

We connected with one of the most successful Kickstarter campaigns, Photobooth Supply Co, and asked founder, Brandon Wong to give us some insight on his strategy:

Product first, campaign second

So with all of those positive benefits of the platform figured out, we wanted to make sure we had the product itself in the right place before we launched.

We’ve been working on Salsa for a long time now and wouldn’t have felt comfortable revealing the ability to pay for it until we hit a very important milestone. We had a final prototype.

Doing all of the sourcing and actual production is secondary—there was absolutely no way we could have gone public without people being able to see real photos (and touch in person) a functioning prototype.

This meant that we had to do all of the development before we ever saw a cent.

Finding backers in the real world

We launched the product at our annual Booth Summit, which is a convention for photobooth owners to get together and learn from experts in the field. Launching a product in a receptive environment is generally considered to be a good idea. The same was definitely true for us!

We had a crowd of people who had just told us they were dedicated to growing their business… and we had the chance to offer them a way to do just that. I really can’t emphasize enough how important it is to make products that matter for people who will care about them.

This opportunity to see the product in real life was an essential component for our launch, but it might not be the same for you. I think it just shows how essential having a great prototype is. People love to touch and feel what they’re buying, if you’re talking about something physical… you should be able to show a prototype before you ask for money.

Building excitement with even the smallest backers.

We knew that we wanted to have a ton of incentives for early backers so that they’d be rewarded for taking a leap of faith on a new photobooth.

We’re obviously not making a whole lot of money on that first $1999 tier. But it enabled people to be part of something fun.

Every $1999 backer is always going to be able to say, not just that they got a great deal, but that they were one of the first to get on board. It means a lot more than a discount code expiring—just look at how frustrated people are on Twitter when a limited stock of rewards is secretly gobbled up.

Kickstarter doesn’t reveal the names of backers, but it humanizes them. And it just adds to the fun of getting your own spot! Even for someone backing now, they’re able to say that they were an early adopter.

Delivering on our promise

One of the most common critiques of Kickstarter items is that they either never show up or that they take years. I wanted to make sure that our timeline was easy to deliver and also reasonable.

Nobody deserves to wait two years for your product after they pay for it. I felt like we needed to offer a much quicker turnaround than that. We launched on Black Friday 2018 with an estimated delivery of April 2019.

That’s under 6 months and much lower than the average Kickstarter! The most important thing is that we will be able to meet that timeline. You can’t go around promising delivery dates and missing them, this isn’t a consumer product.

Anytime you’re working with the events industry you have to be very transparent and up front about timelines. A bride who books a photobooth needs it to show up on her wedding day. It’s non-negotiable!

What Skills Do I Need To Succeed In Starting A Horse Breeding Business?

As a horse breeding business, there are several essential skills and characteristics that are important to identify prior to starting your business.

Let’s look at these skills in more detail so you can identify what you need to succeed in your day-to-day business operations:

Self Motivation Skills

Self motivation and discipline skills are critical in order to become successful in this field.

It's likely that you will find yourself starting and running your horse breeding business from home, which could mean there are more distractions for you.

Here are the basic skills needed for self motivation & discipline:

• Becoming a self starter: It's important that you are capable of independently completing a task without the help or direction of anyone else
• Listening and following directions : When you are given direction by others, it's critical that you are able to follow directions and ask the right questions in order to get your job done
• Taking the initiative in problem solving: Instead of taking the easy route, you'll need to learn to troubleshoot issues on your own as much as possible.

Customer Service Skills

Friendly communication with customers and the ability to address service issues is a critical part of the job.

Here are some customer service skills you may want to consider prior to starting a horse breeding business:

• Professionalism: The way you act, present yourself, and respond to situations all leave an impression on your customer. It's important to stay professional at all times when handling customer requests or issues.
• Problem-solving: When issues arise, it's important that you are able to think quick on your feet and address the situation with a calm and clear solution
• Friendly-manner: This is an obvious one, but customers truly appreciate someone that can respond in a quick, efficient, and friendly manner.
• Proficient in writing: These skills include the ability to write well-crafted emails, service tickets, and any other programs used by the business (ie. chat functions, SMS texting)

Business Savvy Skills

When starting a horse breeding business, there are a few fundamental business skills you will want to learn in order to be successful:

• Leadership and training skills: A great team starts with YOU. Make sure you have all company policies and training procedures in place prior to hiring your team
• Decisive and self-confident: Over the course of your career, you will need decisions that could impact your business significantly. It's important you are able to think clearly and rationally about these decisions.
• Ability to understand the financials : You don't need to be an accountant, but it is important that you are able to clearly understand and define metrics such as expenses, revenue, profit, margins, COGS, etc.
• Strategic Thinking : Setting clear goals and benchmarks, identifying opportunities, risks. Ability to effectively communicate these insights to your team.

These are a few of many business savvy skills you should have (or work on) when starting a horse breeding business.

For a full list, check out this article here .

Advice For Starting A Horse Breeding Business

We've interviewed thousands of successful founders at Starter Story and asked what advice they would give to entrepreneurs who are just getting started.

Here's the best advice we discovered for starting a horse breeding business:

Write a Business Plan

Writing a business plan from the start is critical for the success of your horse breeding business.

Because this allows you to roadmap exactly what you do, what your overall structure will look like, and where you want to be in the future.

For many entrepreneurs, writing out the business plan helps validate their idea and decide whether or not they should move forward with starting the business.

You may want to consider expanding upon these sections in your business plan:

• Executive Summary : Brief outline of your product, the market, and growth opportunities
• Overviews and Objectives : Overview of your business, target customers, and what you need to run your business
• Products and Services : Specifics on the products and services your business will provide
• Market Opportunities : Analysis of customer demographics, buyer habits and if your product is in demand
• Marketing : Outline of your marketing plan and how you plan to differentiate yourself from other customers
• Competitive analysis : Analysis of your competition and the strengths and weaknesses therein
• Operations : Hierarchal structure of the company and what it will take to run the business on the day-to-day
• Leadership Team : Detailing roles and responsibilities of each manager based on their specific skill-set
• Financial Analysis Understanding of all expenses, operating budgets, and projections for the future.

Learn more about how to write a business plan here

Determine Which Business Bank Account You Need

There are hundreds of banks out there, and it can be overwhelming to find one that's right for your business.

Here are some factors you may want to consider:

• Location - Is your bank close enough that you can easily make deposits or get cash?
• Low Fees - Make sure to understand any and all fees associated with setting up and maintaining your bank account. Ask for a list - banks usually try to keep this hidden and in the fine print.
• Online Banking Services - Make sure you can easily navigate through your online portal and you have easy access to everything you need.
• Line of Credit - What do your options look like (even if you don't need this now, you may need this down the road).
• Every bank has something that differentiates them from the rest, so make sure whatever that is applied to your needs and values.

Check out this list of the 13 Best Banks for Small Business in 2020 and what makes them so unique.

Setting Up Your Horse Breeding Business (Formation and Legal)

When it comes to setting up your business, you may find yourself in a place where you have to make some financial and legal decisions.

The first thing you'll want to decide on is whether you want to be an LLC, S-Corp, or C-Corp.

These three options are found to be the most common when starting a small business, and all serve to protect your personal assets and also provide you with certain tax benefits.

• LLC : All income and expenses from the business are reported on the LLC personal income tax return.
• S corp : Owners pay themselves salaries + receive dividends from profits.
• C Corp : C Corps are separately taxable entities that file a corporate tax return (Form 1120). No income tax is paid at the corporate level and any tax due is paid at the owners individual expense.

Depending on where you're conducting business, you'll also want to consider securing the proper permits, licenses and liability insurance.

Learn more about securing the right permits and licenses ➜

Need to start an LLC? Create an LLC in minutes with ZenBusiness .

How Do I Pay Myself As A Small Business Owner?

Most entrepreneurs start a business to do something they love- but at the end of the day, you still have bills to pay (maybe now more than ever).

But it's important to strike the right balance - if you pay yourself too much, you could be putting your business at risk.

There are two common ways to pay yourself as a business owner:

1. Owner's Draw

Many entrepreneurs pay themselves through an owner's draw. This means that you are technically sean as "self-employed" through the eyes of the IRS and are not paid through regular wages.

At the point that you collect money from the draw, taxes typically are not taken out - so make sure you are prepared to pay these taxes once you file your individual return.

As an owner who takes a draw, you can legally take out as much as you want from your equity.

This type of compensation is suited for Sole props, LLCs, and partnerships. If you’re an S corp, you can pay yourself through both a salary and draw if you choose.

If you decide to pay yourself a salary, you will receive a set and recurring amount. This will be taxed by the federal government and the state you reside in.

The reality is that it can be really complicated to set your own salary, so we have some tips for you to consider:

• Take out a reasonable amount that allows you to live comfortably but also sets your business up for success
• Consider the number of hours you are working weekly + the type of duties you are performing.
• Set your salary based on your industry-standard, location, and profits (or projected profits)
• Look at your P&L statement : Deduct your own pay from that amount. This is important so you can first tackle important business expenses, and then pay yourself from the amount leftover.
• Pick a payroll schedule (and stick to it)! In the US, it's most common to pay yourself and employees twice a month.

To learn more about how to pay yourself and what is a reasonable amount, check out this article .

How To Price Your Horse Breeding

One of the most challenging aspects to starting a horse breeding business is determining how much to charge for your horse breeding.

When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.

Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.

On the other hand, when businesses over-price , this tends to be just as damaging to the business.

When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.

Here are some factors to consider when pricing your product:

Understand your customer

It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:

• Customer demographic: Age, gender, location, etc.
• Buying habits of your customer: What they buy + when they buy
• Level of price sensitivity with your customer

All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.

Understand your costs

When pricing your horse breeding, it's critical that you first identify all of your costs and consequently mark up your horse breeding so you can factor in a profit.

The actual cost of your horse breeding may include things like:

• The actual cost to make the product (ie. raw materials, supplies, manufacturer).
• Shipping + overhead fees
• Operating costs to run your business

You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.

Create revenue goals

When determining the price of your horse breeding, you'll want to create goals for revenue + how much profit you want your horse breeding business to make.

This process is simpler than you may think:

• Think about your breakeven cost (by completing the above step).
• Create a revenue goal based on your break-even cost
• Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
• Divide your revenue goal by the number of items you plan to sell

This figure will help determine your estimated price per product in order to meet your revenue goals.

Evaluate your competition

The last piece in determining how to price your horse breeding is by simply looking at your competition.

The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your horse breeding fits best in the marketplace.

All of these factors play an equal part in pricing your horse breeding, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.

Gross Margin Calculator: How to Calculate The Gross Margin For Your Horse Breeding

Our calculator is designed to be simple and easy to use.

The goal is to help you set realistic expectations and understand what is considered a healthy gross margin for your horse breeding business.

Calculate your gross margin and profit margin here .

What Type Of Customers Will Buy Your Horse Breeding

It's important to first establish who you will be selling to, whether it's to businesses or consumers.

Typically, in this industry, products are sold to B2C markets (business-to-consumer).

Let's take a look at what this means for your horse breeding business:

B2C (or business to consumer) is a transaction where businesses sell their products or services to the consumer directly.

In this market, consumer behavior is the primary driver for your business decisions - so it's important that you truly identify who your customer is, and what their buyer habits are when building your product/service.

The advantage

B2C is that you are able to cast a very wide net when targeting your customers. Your product may interest a large number of consumers or a specific niche.

The disadvantage

B2C is that consumers hold all the power - so if your website is not the most user friendly, or does not rank in the top search results on Google, chances are, your customer is going to shop elsewhere.

When building your horse breeding business, it's critical that you hone in on who your target audience is, and why they need your product over your competition.

Here are some items to consider when identifying your buyer persona:

Design A Prototype

Turning your idea into a reality can feel like a daunting task - but it's critical that you have an idea of what your product will look like (even if it's just a sketch) prior to finding a manufacturer.

Here are some common ways you can design your prototype:

• Draw Your Initial Design on Paper
• Form pieces of fabric together
• Consider Taking A Generic Product And Putting Your Own Brand On It
• Try Making the Product Yourself
• Consider Building A Prototype With A 3D Printer

To learn more about how to design and prototype a product, check out our latest guide here .

Donation Based Funding

You may want to consider raising money through donations for your horse breeding business.

This type of funding is common for disaster relief, charities, non-profits, and medical bills.

Donation-based funding is a way to raise money by asking a large group of people to donate, with no financial return to investors or contributors.

Often times, backers donate money in exchange for perks or rewards.

🚀 How To Launch Your Horse Breeding Business

Build A Website

Building a website is imperative when launching your business, and with the right tools in place, this can be a simple task to check off the list (without having to hire someone).

• Pick a domain name that's easy to remember and easy to type
• Choose a Web Hosting Plan (ie. Shopify, Squarespace)
• Make sure you choose the right theme and design
• Implement the proper page structure (ie. about page, contact page, pricing etc)

To learn more about how to build a stellar website with little stress, we give you all the details on this step-by-step guide .

Once you have chosen the domain, web hosting, and platform, it's time to get started with the design phase.

Themes are a great way to produce the fundamental style and identity of your website - this includes everything from your font design to your blog post styles.

One of the best ways to get started is to simply explore the various themes (free or paid depending on what you're looking for) and test them on your site.

If web-design really isn't in the cards for you, you may want to consider outsourcing a web designer to help bring your vision and brand to life.

Traditional Launch Strategies For Your Horse Breeding Business:

There are various different ways you can launch your horse breeding business successfully.

Here are a few different strategies to get customers excited about your horse breeding business:

• Set up a Facebook page for your business. This is a great way to establish an online presence
• Host an event in a fun location with drinks & food. This is a great way to get exposure in the local community.
• Get Press! Pitch your story to the media and you may just land in an amazing publication
• Live sales to get customers excited
• Send a hand-written letter in the mail with a discount on your services to the local community/neighborhoods.

Get Press Coverage For Your Horse Breeding Business

The more buzz around your brand - the more the phones ring, the more traffic to your website, and the more customers as a result.

Here are a few ways you can get press for your business:

Press releases:

Press releases are a great way to share big announcements or news, but in order to get any traction, you'll need to find a way to make your press release stand out amongst others.

Try to convey a story that really matters, not just to you, but to the reporter and to their audience.

Here are some things to consider when submitting a press release:

• Craft a catchy subject (keep it short and sweet).
• Acknowledge the journalist's past work and interests - this is key!
• Include the main point of the story in the first paragraph, heck, even the first sentence. Reporters want to hear the juice first and foremost.
• Focus on the facts and try to limit the amount of jargon used.
• Pitch yourself! Help them put a face to the story.
• Make sure your topic is newsworthy. If it's not, find a way to!
• Try not to include any attachments of your release!

Email is one of the most effective and preferred way to send your press release, so as long as you keep your pitch brief, interesting and personalized (no cold emails), you should stand a chance!

Get Press Using HARO

HARO, otherwise known as "Help a Reporter Out" is an outlet for journalists to source upcoming stories and opportunities for media coverage.

The best part is, HARO is free to use! There are, of course, premium versions you can purchase, but the free version is still an accessible way to get press.

Once you set up an account, HARO essentially will email you based on stories (that are relevant to you) that need to be covered where you will then have a chance to essentially "bid on the story."

Here are some tips when crafting your pitch:

• Discuss your experience and expertise in the space. Make sure it's obvious why you're relevant to this story.
• Answer the question in 3-4 sentences. Try and be as direct as possible
• Offer to provide the reporter with more information and make sure to give them your contact info

Plan a Publicity Stunt

Planning a publicity stunt is an effective and quick way to raise awareness for your brand and gain some traction from the press.

If you're looking to plan a stunt, the objective should be to be bold and create something memorable

However, being bold has a fine line - it's important that you consider the timing of your stunt to ensure you don't come off insensitive or unethical. For example, timing may not be in your favor if you plan something during the general election, or in most recent cases, a global pandemic.

In order to measure the success of your stunt, it's important that you first determine your end goal, for example:

• Is the stunt aimed to raise money for your business or a particular organization?
• Is the stunt aimed to drive more traffic to your website?
• Is the stunt aimed to get more followers and engagement on Instagram?

Here are a few tips for creating a great publicity stunt:

• Research to ensure that there haven't been similar stunts done in the past by other businesses - this could easily turn off journalists and your audience.
• Make sure you can explain the stunt in one headline - this will help grab the media's attention. In other words, simplify!
• The stunt should be related to the product you are promoting. Even if the stunt is a success in terms of viewers, but it doesn't tie back to your original goal, then it's not useful.
• Keep the stunt visual with videos/images.
• Leverage the internet and social media platforms for your stunt by sharing your message across a variety of audiences. This will help with word of mouth and the overall success of your event.

To learn other strategies on how to get press, check out our full guide here .

🌱 How To Grow Your Horse Breeding Business

Improve your SEO

SEO is not just about driving traffic to your site, it's about driving the RIGHT traffic to your site , and ultimately, converting leads into customers.

One of the most important aspects of SEO is understanding what your customers are searching for, otherwise known as "keyword research."

Here are some tools that can help you choose the right keywords for your horse breeding business.

• Google Ads Keyword Planner invaluable for discovering search trends.
• Google Search Console is very helpful once your website is up as it shows you what words/phrases are generating traffic.
• Ahrefs and SEMRush are paid tools that allow you to look at results of your competitor's website.

Publish Great Content

Finding keywords is an important piece of the puzzle, but Google also ranks your site based on the actual content you produce, as this is what your customers are reading and engaging with.

There are various different "forms" of content that you may want to consider diversifying on your sites, such as blog posts, articles, studies, and videos.

So let's discuss what google considers "good content:"

• Length - This will vary depending on the page, however, generally having a sufficient amount of content helps search engines recognize that your site is a good source for a specific topic
• Engagement - The longer people stay on your website to read your content, the higher Google will rank your website. It's important to have informative and "thick" content that keeps people reading
• Avoid Duplicating Content - Google will recognize this and may consider your content to have low value
• Ensure pages load quickly - This will also help with engagement and time spent on your website
• Shareability - Create content that people want to share, and is easy for them to share, especially to their social media accounts (ie. "click to tweet" is a great example of this).

Another element of creating good content is creating consistent content.

If (and hopefully you are) publishing content frequently, it's important to stick to a schedule - this helps build brand trust and easy user experience with your customers.

Planning out your content with a content calendar is key to staying consistent.

Here are a few great content calendar tools that can help you:

• If you prefer to keep it simple, your average spreadsheet is just as useful!

Backlinks are an important piece to SEO, as they allow for other websites to link to your content.

Search engines recognize that other sites are essentially "verifying" your content and essentially rank you higher because of this.

Of course, some links are more valuable than others and can affect your site in different ways.

For example, if a highly valuable and credible site like the New York Times links to a page on your website, this could be remarkable from an SEO perspective.

Aside from organically getting mentioned from other sites, there are other ways that you can increase and earn backlinks:

• Create infographics with relevant data that people want to share
• Promote your content on different sites/look into "guest blogging"
• Contact influencers/journalists/bloggers and ask them to mention you!
• Write testimonials for other sites in exchange for a backlink
• Leverage existing business relationships

Learn more about the fundamentals of SEO ➜ here and check out Neil Patel's 3 Powerful SEO Tips below

Build A Blog

One of the most effective ways to build brand awareness and grow your business is through consistently blogging.

We've outlined some useful tips for you to consider when creating content:

Consistency and Quantity

Quality is important, but it should be the standard for any content you publish.

What’s more important is consistency and quantity.

Consistency is as simple as committing to publishing and sharing a certain number of posts per week. For me, that’s three per week right now.

This kind of commitment is key, because one day, a random post will blow up, and you will have never expected it.

Oversaturation

The easiest mind trap is to think "I’m posting too much", and “I need to give my readers/audience/this platform a break”.

This is nonsense.

There is no such thing as oversaturation. Well, there is, but it is just someone else’s opinion.

For every person that tells you you are posting too much, there is another person that wants even more of your content.

You should ignore people’s opinions on how much you post.

Patience & Persistence

Keep posting, keep trying, and keep putting out good content on the regular. Your time will come, and when it does, it will change everything.

The only thing you have control over is your content.

You can’t control how people will react to it. You can’t control pageviews, likes, or shares.

So the only metric you should focus on is how much content you can put out in a week, month, etc.

Where to share your blog content

Mailing List

I know it sounds obvious, but the best places to share your content is on your mailing list. It is guaranteed traffic and it is a great way to get rapid feedback from your most loyal readers.

Send newsletters often. I have done once a week since starting, and I’m moving to twice a week soon.

Work on increasing your mailing list as well. Look into ways to increase your conversion rate to your mailing list. I added a flyout popup thing to my site and now I’m collecting ~30 emails per day.

An email newsletter is one of the most powerful assets you can have and it is worth its weight in gold.

Reddit is one of my favorite places to promote content.

It is a very scary place because you will often get banned or heckled, but it can really pay off.

Create social media accounts for your blog, the main ones I use:

Twitter Facebook Instagram LinkedIn

Set up Buffer and share all of your blog posts to all of your accounts. All of these little shares really do add up.

Automate this as much as possible. I automated all of my social media for Starter Story.

Facebook Groups

When I started out, I put together a spreadsheet of relevant Facebook groups for my niche, and I would post to these groups whenever I had a big story I wanted to share.

Grow Your Email List

The more engaged list of emails, the more engaged customers, which ultimately leads to more sales.

One of the best ways to start growing your list is by providing your customer with something free (or discounted) in return.

This could also be anything from:

• Fascinating case study
• Video series
• Free week of the product
• Discount on the product

Learn more about how to grow your email list and improve email marketing ➜ here .

Dylan Jacob, founder of Brumate states their email collection tactic that is proven to work:

We use Spin-a-Sale for this (you spin a wheel for a discount code in exchange for subscribing to our email list). This has been the best email-collecting tool we have found because the customer truly feels like they won a prize rather than just a coupon code.

Even if a customer doesn’t convert right away, if we have their email we have a 19% chance of converting them into a future customer whether that is through future promotions, new releases, or simply just sending an email at the right time for a purchase to finally make sense for them.

We also have a return customer rate of over 14%, so one out of every 6 people we convert will end up buying from us again with an average order value of over $60.00.

Add an exit-intent popup to your online store

A great way to double, or even triple, your email opt-in rate and to grow your list is to add an exit-intent popup to your site, and offering a discount or content upgrade for subscribers.

Here's an example of what that might look like:

One thing that I spent years NOT doing, that I now kick myself about, is adding an "exit intent pop-up" to our site, which lets people enter a sweepstakes to win a Xero Shoes gift certificate.

That one idea has added over 100,000 subscribers to our email list, which is one of our most effective marketing channels.

Improve Your Email Marketing

Different types of emails

Here are the most common types of email campaigns you can send to your customers and their benefits:

• Welcome emails - the perfect way to provide information from the start with a clear CTA. Make sure to tell your customer everything they need to know about your product or service.
• Newsletters - a great way to give customers updates or send out your latest content
• Product launch emails - the quickest (and easiest) way to increase sales is by selling to current customers. Make sure they're the first on the list to know about your new product
• Promotional emails - promote discounts, deals coupons etc. Try and make this feel exclusive and for a limited time only
• Abandoned cart emails - give your customers a reason to complete their purchase!

Here's a great resource for finding curated email designs, for all types of email campaigns!

Abandonded Cart Flow

The abandoned cart workflow is one of the most effective strategies for turning your lead into a customer, and a powerful tool to have if you're an e-commerce business.

Think about all the times that you went on a shopping frenzy only to add items to your cart and then either forget or realize nows not the right time to pull the trigger.

Then, minutes later you receive an email saying "Hurry up! Your cart is waiting - and we want to provide you with 20% off your order."

Maybe that's the special touch (and discount) you needed to pull that trigger.

Implementing this workflow can automatically trigger this for your business every time a customer abandons their cart.

Here's a great example of an abandoned cart email from Brooklinen :

Things they do well:

• Showcase 5-star reviews from other customers
• Offer a small discount + free shipping
• Great design + clear call to actions!

Experiment With Pay Per Click Ads (PPC)

Pay-per-click (PPC) is a performance-based marketing method that allows you to show specific ads for services or products oriented to a very defined target, with the goal that the user visits your website or landing page.

Here are some tips to consider:

• Consider connecting the ad to your corresponding landing page so that the audience receives the necessary information after clicking on the ad.
• Conversion Tracking: When running PPC campaigns, be sure to run the ads with conversion tracking.
• Focus on quality keywords, even if there are few as this will save you time and money. When assessing the performance of a keyword, it's important to track the expense, conversion, and cost per conversion, as well as the ROI.

PPC advertising can be a very important lead generator as long as it's done properly. Your PPC campaign is intended to drive traffic to your website and help the business scale.

Additionally, if the campaign is not having the desired results, you can make the necessary changes immediately to improve them.

Ryan Schortmann, founder of Display Pros talks about their investment in PPC Ads:

My name is Ryan Schortmann and I’m the founder of Display Pros. We are a custom trade show display booth company offering easy to use portable display “kits” for small and medium businesses wanting to get into the trade show game.

It did not take long to come to the realization that to compete at any reasonable level, we were going to need to take the plunge and invest in Pay Per Click ads and display.

From experience, I know that it is important to give Google’s hivemind some time to settle in before each campaign starts seeing consistent results (this is largely dependent on budget).

A certain amount of PPC budget must be viewed as a “marketing research” expense and then you can look at the analytics data and make informed decisions on where to refine, tweak or plain scrap an idea.

Google Shopping was an entirely new concept for me. You can’t assign keywords to products so at first, I was asking myself “How the hell do you refine these?”. Then I found some good reading material and courses and learned of some advanced methods that the pros are using. It turns out you can utilize negative keyword lists combined with the priority setting on each shopping campaign to “shape” the keywords that are coming in and how much you are spending on them.

To learn more about PPC Ads and Google Shopping, check out this video to learn everything you need to know!

Social Media Advertising

Social Media Advertising is one of the leading ways to get the word out when it comes to horse breeding business.

There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

Let's talk about a few of the main platforms and what makes them unique:

• Facebook Advertising - more than 2 billion monthly users. Facebook is the best for lead generation + capturing email addresses for e-commerce businesses.
• Instagram Advertising - approximately 500 million monthly users and has a higher audience engagement rate than any other platform. Instagram ads are best for linking to a product page or landing page and reaches the 18-29 age group most effectively.
• Twitter Advertising - Small businesses typically use twitter ads to drive brand awareness, but the platform is meant more for organic engagement (and is not as heavily used for paid advertising)
• Pinterest Advertising - 175 million monthly users and most effectively reaches the female audience. Pinterest is great for promoting products without "promoted". The promoted pins have a way of blending right in.
• LinkedIn Advertising - 227 million monthly users and is geared towards the B2B market and generates the highest quality leads. Great platform for recruiters, high-end products and services that will help businesses

It's important to first define your goal/objective so that you don't waste time and money into the wrong platform:

Here are some different questions to ask yourself as it relates to your goals:

• Do I want to simply drive brand awareness?
• Do I want to drive users to my website to gather information?
• Do I want to increase sales and get my customer to take action?

From there, choose the platform that targets your audience best and start experimenting!

Learn more about social media advertising ➜ here .

Founder Andy Hayes talks about mastering FB ads and the pixel:

The biggest bang for your buck will likely be mastering Facebook and it’s platform - which we all know is pay for play, so you’ll have to come up with a small amount of budget to start for marketing.

We’ve spent countless hours (and paid numerous coaches) before we cracked the code that works for us on Facebook, but it is working really well for us now.

Some of the most important things to know when it comes to FB Ads:

• Start with retargeting (that’s showing ads to people who already know you but did not purchase). Master this - and start building information on your Facebook Pixel - before you do anything else
• Once you have that down, try working with the 1% “Lookalike” audience to prospect for new customers. This may take awhile because your pixel audience is small, so try layering on interests - 1% Lookalike and your largest competitor, for example. Don’t use interest-only targeting until you master this.
• Great photography and videography is key, as is smart copy. Research what’s out there in your industry and constantly test - what works for one company may not work for other people.
• Make sure you have good offers. For example, we have a $5 trial for our subscription, which converts affordably - if we promoted our subscription with the standard $30 front charge, it wouldn’t be as cost-effective.

🏃🏼‍♀️ How To Run Your Horse Breeding Business

How To Retain Customers For Your Horse Breeding Business

Retaining customers is one of the most effective ways to grow your horse breeding business.

Oftentimes, it's easy to find yourself focusing on generating new customers, vs retaining your current ones.

Look at it this way - you are 60-70% more likely to sell a new product to an existing customer than you are a new customer.

That's not to say that finding new customers and revenue streams is not important, however, the easiest (and most inexpensive) source of new revenue is right there in front of you.

Here are some ways you can retain customers for your horse breeding business:

• Responding to comments on social media
• Send discounts (or freebies) to loyal customers
• Provide valuable content, for free
• Write a hand written thank you note
• Provide awesome customer service and build relationships with customers

To find out more tips and tricks on retaining customers, check out this article ➜ here

Diversify Your Product Line

Adding new products to your business is a great way to expand into new markets and grow your business.

It's important to note that adding new products and diversifying may not be in the cards for you right this moment, and that's okay. You can always consider it down the road.

Here are some reasons you may want to considering adding/diversifying your product

• Meeting the needs of your customers
• Establish yourself as a top provider in your industry and stay ahead of the game with competition
• Resistance to downturns/trends fading
• Create new revenue streams

Provide Great Customer Service

Providing exceptional care and creating relationships with clients is a great way to build your reputation and retain customers.

Whether you are an online business or a physical business, it's highly important to communicate with customers and make them feel like they are the priority.

Just remember: customer service represents your brand, values, vision and YOU as a person.

Authenticity

As a brand, you want to deliver an experience that authentic, honest and transparent.

Don't make the mistake of giving your audience less credit than they deserve.

Be Authentic

If you go around chasing every trend and only focused on yourself and money, you’re going to lose very quickly.

There have been many times where we have been tempted to do this but stayed true.

Sure we sacrificed sales, but we kept our integrity, played the long game and people saw and appreciated that, and really began emotionally investing in the brand.

Build a Referral Program

Word of mouth is one of the best ways to get the word out about your business and acquire new customers. Especially when you are starting out, it’s important to build a solid referral program to encourage existing customers to help you find new ones.

A great way to do that is by offering a reward (ie. credit on your service or cash) to customers that refer you to their friends and family.

A fantastic referral program will help with clout, credibility, and establishing yourself in the space.

Word of Mouth

The most tried and true way to grow a horse breeding business is through word of mouth - some entrepreneurs would say it's more important than all social media.

Why you should focus on word of mouth:

• Consumers trust word of mouth above all other forms of marketing
• 92% of consumers believe recommendations from friends and family over all forms of advertising
• 64% of marketing executives indicated that they believe it is the most effective form of marketing

Learn more about word of mouth in our guide: 30 Ways Founders Grow Their Business ➜

How To Crush The Sales Process For Your Horse Breeding Business

You may find yourself in a spot where you're ready to hire a few (or many) salespeople to support the sales conversion process.

Regardless if you have one or thirty salespeople, it's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

Mike Korba, co-founder of User.Com walks us through the entire sales process and which teams are responsible for what:

User.com Sales Process

Each user and account is qualified with a specialist. For business leads, they are handled by the sales team, and if they are qualified we give them a demo, more than often at the end of their fourteen-day trial. If they’re happy they’ll add a payment, and get an account manager, so a customer support and success team who will help implement the solution and to use the technology.

Sometimes, users will convert naturally on their own, after using the freemium product and finding it to be something that they will find beneficial.

After they convert, we help with onboarding , give them some personalized tips for their specific business or industry to grow plus all kinds of support, for whatever they need - something we take huge pride in.

The team is right now more than 30 people, with more than half working on the IT and product side, and the rest are in three teams: Support, Marketing, and Sales who all work together very closely.

We put together the best resources on the internet to help you start your horse breeding business.

• Starting & Running Your Own Horse Business, 2nd Edition: Marketing strategies, money-saving tips, and profitable program ideas: Mary Ashby McDonald
• The Business And Law Of Horses: A Guide For The Small Horse Owner And Breeder

Web Resources

• Set Up A Successful Horse Breeding Business
• Starting A Horse Breeding Company – Business Plan Template
• Just The Job - A Career In Equine Breeding And Stable Procedures

Case Studies

• How Much Does It Cost To Start A Horse Breeding Business? (In 2024) 1 of 6
• 42 Trending Horse Breeding Businesses [2024] 2 of 6
• 335 Equestrian Instagram Bios For Horse Lovers 3 of 6
• 64 Marketing Ideas For A Horse Breeding Business (2024) 4 of 6
• 29 Pros & Cons Of Starting A Horse Breeding Business (2024) 5 of 6
• 5 Horse Breeding Business Success Stories [2024] 6 of 6

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How to Write a Horse Breeding Business Plan

Starting a horse breeding business is a huge undertaking and you will likely need to add other services to sustain a reliable cash flow. If you plan to include additional services such as boarding and training, your horse breeding business plan needs to reflect those added services. A basic business plan consists of the following parts:

Executive Summary

The executive summary is a snapshot of your entire business plan. It should briefly summarise what is presented in the entire plan. It is usually written last after your research is complete, and the other sections are written.

Your Business

Here is where you introduce your company. What is its name? What products and services will you offer? For example, Horses and More has been established to provide thoroughbred breeding services to the region of Queensland. It will also offer boarding and training services to complement the breeding services. After describing the product and services in detail, consider including vision and mission statements. These two statements help you identify the focus of your business and lets investors or lenders know why you want to open the business.

This section is where you show investors or lenders that you’ve done your homework. You outline the overall Australian horse-breeding market and then narrow the discussion to the local market in which you will be competing. For example, an economic impact study of the nation’s thoroughbred racing industry reveals it is worth $9 billion and provides more than 70,000 full-time jobs. Queensland’s horse breeders are among the segment of Australian horse breeders with growth potential.

You should include the market trends in your location area as well as Queensland as a whole. You will need to focus on the areas of horse breeding and equine services that you will include in your business plan . Be sure to highlight any areas that may be of concern over the next three to five years.

Your Products and Services

List all the products and services you plan to offer. Be as specific as possible. If you are going to specialise in a particular breed, discuss why. If you are offering boarding and training services, outline what those will include and how you plan on pricing them. For example, will you price by the hour for training or in four-hour increments? Be specific to make sure you have accounted for everything in your pricing model.

The Competition

If you are planning on offering both equine services and horse breeding, discuss the competition in both areas separately and then in combination. Your business will likely have to compete in all three markets. You need to identify what your primary market will be in the first few years of operation. If you plan to expand your business outside your local market, you will need to include competitors in the other markets.

SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities, and threats. The purpose of an analysis that focuses on these four areas is to help you take a close look at your business plan. Here are some questions you need to answer as part of your SWOT Analysis.

• What are your strengths? Do you have experience in horse breeding? Have you worked in an equine facility? Are you going to offer boutique services that will set you apart?
• What are your weaknesses? Be honest about them. Investors and lenders know every business has flaws. If you try to hide them, they will assume you aren’t being honest, or you haven’t done your analysis.
• What opportunities do you see for your business? Do you qualify for special programs such as the QTIS ? Is there a niche market that your business can fill?
• What threatens your business? Some of these threats may be outside your control. You can’t control natural disasters, but you can control your response to them. If your location experiences floods or fires, be sure to include them in your analysis. What about competitors?

These questions are a starting point for a SWOT analysis. You may not include the details of everything you identify, but the process is an excellent way to assess your business’ potential for success.

Marketing and Sales Plan

Promoting your business is crucial to its success. If your business is like most, customers are not going to flock to your doors the minute you open for business. How do you plan to let people know you exist? Although you may be tempted to spend money on brochures or print advertising, consider a website and social media. An online presence is the best way to build a business. It is today’s word of mouth.

Operational Plan

Do you have the facilities to breed, board, and train horses? Are you renting or leasing facilities? Did you purchase land? How will you find ongoing breeding stock? For your equine services, what are your hours? Will owners be able to contact you after hours? What arrangements will you make for veterinarian services? One of the best ways to write an operational plan is to imagine what a workweek would look like?

Organisational Plan

An organisational plan gives the structure of your company, and it identifies key personnel. The concept behind an organisational plan is to specify who will be responsible for what. If you are going to use outside resources such as legal and accounting services, you need to note those in your plan. As part of the organisational plan, identify the number of people you plan to hire in each position. How many trainers will you need? Who’s going to clean the stalls?

Financial Plan

Three numbers are essential for a horse breeding business plan. Once you have those numbers, you can look at what additional information is needed to convince investors or lenders to give you financing.

• Break-even – Look at your monthly expenses. If you haven’t put together a budget, now is the time to do so. Total the monthly expenses for the first year. That is the amount of money you need to cover expenses, i.e. break even.
• Cash Flow – A budget is the only way to know how much money you need each month. Estimate the income per month. How do you plan to cover the shortfall?
• Profit/Loss – Create a profit-loss statement from the information used to find your break-even point and your monthly cash flow to generate a profit-loss statement. Be realistic. Most investors don’t expect a profit in the first year of business.

Once you have completed your financial plan, you are ready to make a funding request. Based on the data in your business plan, determine the amount of funding needed. Be sure to include superannuation costs. For help, contact us.

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Horse Businesses: How do Horse Farms and Riding Stables Make Money?

Posted on Published: April 27, 2021  - Last updated: May 16, 2021

How do horse farms and riding stables make money? Ask just about any horse owner how much money they make from their horses and you’re likely to get a pretty big laugh before an answer of “absolutely nothing”. Horses, horseback riding, and equestrian hobbies are known to be some of the most expensive hobbies a person can have, so how is it that horse farms and riding stables could possibly be profitable?

In this article, we will explore some of the models by which horse farms, riding stables, and other equine businesses make money.

Types of Horse Businesses and How They Make Money

Riding stables..

Riding stables are horse farms that exist primarily to provide a service to customers. Most horse riding stables offer horseback riding lessons and also provide housing for other people’s horses – called boarding.

Riding stables make money by: charging money for horseback riding lessons and charging money for taking care of other people’s horses.

Primary expenses of horse riding stables: a riding stable needs to purchase and provide housing and care for horses used for riding lessons. A horse riding stable must also pay for liability insurance if a rider is injured, as well as employing a riding instructor and support staff.

Horse breeding farms

Horse farms that focus on breeding horses for sale operate differently than a horseback riding lesson business. Breeding farms make money by creating more horses and selling them.

Primary income: the sale of foals and weanlings (young horses)

major expenses: a horse breeding business is responsible for the care and feeding of their breeding stock, as well as significant veterinary costs associated with breeding.

Depending on the breed of horse that is being bred, and the quality of the bloodlines, income produced by horse breeding can vary dramatically – with foals of some breed and bloodlines selling for $500 while foals of another breed and bloodline’s foals may sell for over $10,000! Generally, the income produced by a horse breeding business is relative to the amount of money that can be invested in high-quality and well-bred breeding stock.

How horse trainers make money

Horse training is an especially difficult horse business model to make money from. Unlike breeding and riding operations which can be fairly easily scaled (i.e. made larger and bigger without the business owner investing equally large amounts of time), horse training businesses generally require a huge time investment for the owner/operator and for that reason tend to be less profitable.

Horse training businesses generate income through charging horse owners for training services and for boarding while the horse is kept at the trainer’s facility.

Major expenses: time investment, liability insurance.

Horse training can also be a risky horse business model because of the high likelihood of injury on the part of a horse trainer at some point during their career. A horse training business is too often built around one horse trainer’s ability to work with horses. In this business model, if an injury sidelines the trainer’s ability to work with horses, the entire business model can collapse. Horse businesses like riding stables and horse breeding farms are less dependent upon one individual.

Making a Business Plan for a Horse Business

Even though horse businesses can be among the most challenging types of businesses to turn a profit, with good business management and creativity it’s possible. The Small Business Administration offers a good template for a business plan that can be adapted to horse businesses. 

Many horse enthusiasts want to dive headfirst into a horse business like owning a horseback riding stable or a breeding farm without understanding the business fundamentals behind owning a horse-related business. If you’re considering breeding horses or opening a riding stable, surround yourself with good resources to help your business thrive.

You don’t need a business degree to thrive in business, but a few classes on business management can save a lot of headaches and potential heartbreaks. Here are some tips:

• Check your local community college for courses on business management,
• Reach out to a local Chamber of Commerce for advice
• Seek out a business incubator. Business incubators are organizations designed to support new small business owners as they set out on new endeavors. By offering a mentor or coach, free tax advice, and help with appropriate licensing, a business incubator can help your business start on the right foot so that your horse business thrives.

Maximize Horse Business Income through Diversification

Although above, we have outlined three common models by which horse businesses make money, the most profitable equine businesses are those that can combine multiple income streams. For example, while paying only one farm mortgage and one liability insurance policy, a farm can exist as both a breeding operation and horseback riding stable- while also bringing a horse trainer on as an employee to offer horse training services. Even more additional horse business income can be gained through adding any of the following services:

• Pony parties (horse themed birthday parties on your farm or on location for a fee)
• Horseback riding camps for kids
• Horse themed retreats for adults
• Developing a working student model – where some of your barn’s labor is performed by students
• Content creation (can you make educational videos about your horse business for YouTube or your own blog? Success in this area can help support a horse business)
• Selling equipment to riders wholesale – while you may not want to open a full-scale tack store, if you have riders coming for horseback riding lessons, you have an entire market of people who need to buy helmets and other riding equipment. Purchasing these items wholesale and selling them at a profit can provide additional income.
• Horse retirement boarding – if you have acreage in a low cost of living part of the world, you may be able to make a profit by offering “horse retirement boarding”. This arrangement allows people from areas where it is very very expensive to board a horse (like New York, Florida, California, and other coastal areas) to retire their show horses to a safe, inexpensive home for the final years of their life.
• Boarding for short-term travel boarding – if your farm is located near a major highway or interstate, you may be able to boost income by offering stalls or corrals with a per-day rate. Many horse owners travel across the country for shows, trail rides, and equestrian events. These travelers are often looking for a place to unload their horses during multi-day journies. If you have a space that can be converted to housing for humans and rented per night as a bed-and-breakfast or Airbnb, you can boost your profit even further.
• Hosting events. If you’ve invested in a good arena – especially a covered arena – you can bring in an extra profit by renting the facility to event organizers for horse shows, rodeos, and livestock events.
• Wedding venue. Rustic weddings are still chic, and if your horse business has the right aesthetic, you may be able to host weddings in your barn, hay barn, or even a pasture with an idyllic view.

All of these are great ways to supplement the income of horse businesses so that your horse business makes a profit and stays in business long-term, helping to promote equestrian hobbies and provide access to horses for people in your region.

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Buying a Thoroughbred racehorse is not a complicated process. But like many new matters, there needs to be enough planning and thought process beforehand to be sure you understand your goals, budget, timelines and overall objectives.  The best way to accomplish this is to develop a business plan. It doesn’t have to be a complicated plan. A simple document that establishes key elements of your horse ownership will do the job.  But many new Thoroughbred owners forget that their ownership should be approached as any business and having a plan is critical to your success. Manage your equine investments as you would manage any other investment or business activity, including exercising good, sound business judgment.

• Lay out your objectives from the start

Establish your budget

Lay out your timetable

Decide where you plan to race & what type of racehorse you plan to own (colts, fillies, classic runners, claimers, etc)

Evaluate your ability to invest at the level you prefer and if you have any doubts about your ability to participate at this level, scale back. You can always move up once you learn more about the game.

Identify how & where you will purchase your racehorses

Decide if your horses will be insured

Select a qualified advisor(s) that understands your objectives.

Always establish what fees (if any) your advisor(s) charge for their services

Be rational not emotional and remember Thoroughbred ownership is a business

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BUSINESSPLANFOR

How to start a horse breeding business plan.

If you love horses and cannot do without riding sometimes, then you can also consider turning your hobby into a lucrative enterprise. If you like to be around horses or you like to take care of foals and horses, you can build a horse-breeding business or a ranch and make quite a bit of money. What does the horse-breeding business really mean?

A horse breeding business is about training foals until they mature and become horses for sale. Some of the ways you make money here is by buying foals, training them to maturity and then selling them to people. A fully mature horse is quite expensive; some people sell up to $10,000 or more if it is a racehorse.

Some of the ways to make good money from your horse breeding business include the following: renting horses after they have been trained as racehorses in your breed. Also, you can make money by renting out horses to professional riders.

Some horse owners may not have the space and time to train their personal horses and will not mind paying for a ranch to care for them. Your ranch may charge horse owners weekly or monthly for the care of the horses.

How can you start your own horse breeding business? Here is a horse breeding business plan and the necessary steps.

A horse breeding Business plan

1. garner experience.

You don’t need special training to start a horse training business, but the experience of how to take care of the horses is very important. The best way to get such experience is to work with an intern at a ranch; he will help you acquire all the necessary knowledge to run your own ranch.

2. Source for Capital

A horse breeding business is a capital intensive business, as you need money to buy or lease a large piece of land for your ranch. You need capital to buy the foals, and they are not cheap, as well as equipment to maintain the ranch. The best way to raise capital to build a ranch is through a loan from the bank or an angel investor.

Keep in mind that the profits do not start coming in as soon as you start the business because it takes a few years for the foals to grow into adult horses. Therefore, you need to come to a payment agreement that will give you enough time to pay.

3. Renting a land space

You need enough space to be able to run this business; the horses must be at least 1,000 square meters away from each other and there must also be enough space to train the horses. Therefore, look for good pasture land that will serve as a ranch.

If you can build outside the property, the better; if not, you have to make sure to make a long term agreement with the owner. You can consider the following when looking for a space; weather conditions, water source, and a ranch site that is free of dangerous animals that could be harmful to horses

4. Construction of the Ranch

Then, you have chosen the perfect place for your ranch, it is time to build the ranch. You can employ the services of a building construction company to manage the project. Remember that the fence should be high enough to prevent the horses from wandering off, or an authorized person from coming to take it away, while the stables should be warm enough to keep the horses warm during cold nights and also well ventilated.

5. Buy all the necessary equipment

When your ranch is ready, you need to purchase the necessary equipment to care for the horses before you buy them. They include; buckets, shovel, shovel and horse fodder. Source for suppliers who can supply you with fodder in bulk quantities as needed because horses eat a lot. Also, arrange for horse supplements to be added to the fodder.

6. Employers Workers

Additional hands are needed to help run the ranch; some will clean the stables or stalls, some will take the horses out daily for training, and others for feeding. Horses need to be cared for sufficiently, so experience working on previous ranches will be an added bonus for your business.

7. Buying Colts

It is advisable that you go with a veterinarian to check the foals to make sure they are free of disease and that they are of the best species. Order the number of foals you need to initially manage the ranch and remember to ask for the type of horses that are popular and on demand in your area before making your purchase.

8. Hire a Veterinary Doctor

You should hire a veterinarian to take care of the horses when they develop any kind of illness or for check-ups. Horses are prone to illness in their early stages of maturity, and the service of a veterinarian is very helpful.

9. Advertise your Ranch:

Some of the ways to advertise your ranch include:

Horse Racing Events: Some of the best places to advertise your business include: printing flyers announcing your ranch and sharing it at horse racing events. Tell people about your business and use the Internet. Because such an event is for horse lovers; you are likely to find some people who are in need of a place to buy good horses.

Local Business Newspapers: You can also advertise your ranch in the local newspapers to help you get targeted traffic.

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Horse Training Business Plan Sample

SEPT.21, 2014

Horse training business plan for starting your own business own

A business plan for horse training is very important for the success of a venture as specialized businesses like this require not only significant investment for finance but also for land, equipment, and trained personnel. It can also be hard to make sure that the business ends up as a success as it has a relatively smaller target market.

Folks who are naturally drawn to the horse training business are often animal lovers that want to turn their passions into a business. However, this business requires much more than a person’s ability to care for a horse. Hence, you must develop a comprehensive business plan for angel investors who would offer funds for the startup.

You may use this horse training business plan sample designed for Majestic Gallops as a reference point. It will address your queries about starting a horse boarding business plan .

Executive Summary

Majestic Gallops caters to the needs of different horses through specialized training and breeding programs through which the horses can get maximum benefit. In this horse training business plan template, you will find tips related to starting and running a horse business.

2.1 The Business

Majestic Gallops began as a part-time interest and effort while Brianna Holland, the owner, completed her studies side by side. Focusing on horse breeding and training, Majestic Gallops will try its best to fulfill client requirements for top training of their favorite equines.

2.2 Management of horse training business

Because of changes in Pennsylvania’s thoroughbred racing program, the demand for quality services has increased dramatically. Developing a business plan helps a business owner to think about the business in more overall terms concerning finances and logistics as well. This horse training schedule template highlights the importance of strategic planning, documentation, and specialization, which are the keys to a horse training business’s success.

2.3 Customers of horse training business

Irrespective of whether you have a business consulting services company or a working on a business plan for pet photography , you need to know who your target audience is. Majestic Galloping has the following customer groups as its target market:

• Horse Owners
• Riding Clubs
• Horse Buyers

2.4 Business Target

The long-term objective of the company is to be included in the best 10 horse training facilities in both the US and Pennsylvania. Defining goals for the business will answer most of the questions regarding how to start a horse training business, as it will help you analyze what steps you need to take to meet those goals.

Company Summary

3.1 company owner.

The owner Brianna Holland, being formally educated in equine science, has also worked within the equine industry for over 20 years.  Majestic Galloping was officially formed as a thoroughbred facility two years ago.

3.2 Reason For Starting the Business

A horse training business can prove to be very lucrative provided that you love equines with a passion to train them. A lot of people own horses but don’t have the time or skill needed to train them. Since Brianna spent her childhood in the countryside and also has a great love for equines, starting a business catered to horses was a natural step for her.

3.3 How the horse training business will be started

Compiling a horse training facility business plan is the setting stone for a company. It requires an analysis of all the available and needed factors of production. It highlights the steps necessary to start a business, listed below as a part of the horse training business plan sample.

Step1: Organize your ideas

Your horse training business plan should look atthe startup of the business through a minimum of five years of projections to consider all income and expenses your business will create. This helped Majestic Galloping to set up successfully and present its plan to its stakeholders such as lenders, attorneys, financial advisers, etc.

Step2: Define your Mission Statement

A mission statement highlights the inherent values of a company as well as the goals it wants to achieve, both short-term and long-term.  For instance, a pet hotel business plan would have a mission statement to provide utmost care to the pets their owners are boarding. This is not something crucial to the legalities of a business but it is an essential part of a company’s brand identity. Majestic Gallops’ mission statement is to provide top-notch training to every horse on board.

Step3: Brainstorm ideas for your Marketing plan

To develop a marketing plan that fulfills all the requirements of your business, you will need to understand both your target market and all of your competitors. In this horse training business plan sample, you will find the marketing strategies developed for Majesty Gallops that will last the business at least for the next five years.

Step4: Establish a Web Presence

Today, having a web presence as one of the sales strategies in your horse trainer business plan is essential. Web presence will help Majestic Gallops’ business connect with horse owners and buyers from different demographics and increase sales potential.

Step5: Build your resources

Another important item that you should focus on while developing a new business is to find helpful resources which can help with business logistics such as an accountant or a lawyer.

This sample business plan for horse training gives an overview of personnel management that will guide you on how to sort your resources.

Services of horse training business

Before starting a horse business, you must streamline the services you are planning to offer. This helps position your brand correctly and effectively reach out to potential customers. Under this sample business plan for horse training, Majestic Gallops will provide the following services:

• Boarding Facilities

Under its horse training and boarding business plan, Majestic Gallops aims to provide a trusted center where you can leave and take your horses anytime. Free transportation will be provided to transport horses from your location to our center. The facility will charge its customers based on the number of days they want to board their horses.

• Breeding and raising horses

Equine breeders plan horses’ mating or assisted reproduction in improving or maintaining specific breed characteristics over several generations or produce offspring with desired traits, like speed, strength, color, or behavior.

• Horse Training

Using a comprehensive horse trainer business plan, Majestic Gallops will hire the training experts to assist horse owners. Horse owners usually love riding their equines but have neither the patience nor the skill to actually train their horses. Thus, they need a business to cater to this need.

• Consultancy services

Majestic Gallops will offer consultancy services for new owners or those returning to the joy of horse ownership later in life. Consultancy services will focus on developing and managing horses to optimize health, well-being, and safety.

Marketing Analysis of horse training business

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5.1 Market Trends

The horse industry forms a huge part of the US’s economy as it engages 4 million people and there are about 9 million horses in the US alone that needs care and training regularly. A few decades ago, only the affluent and wealthy could afford horses. However, now, even people with an average income of $60k-$70k own horses. Given the market trends, the idea to start a horse business is a good idea.

5.2 Marketing Segmentation

Common characteristics of a market segment include interests, lifestyle, age, gender, etc. It is essential to identify them to determine your target market. In this sample equine business plan powerpoint, the following are the customer groups that are identical to those identified while starting dog training business plan :

5.2.1 Horse owners

Majestic Gallops will target horse owners who lack the expertise needed to train their horses. Our professional staff will help train the horses that are fit for riding and are accustomed to listening to the owner’s command. We use a equine business plan that is holistic.

5.2.2 Riding Clubs

Various riding and saddle clubs in the city will purchase their horse from our horse farm. We will be well-known for having top-notch breeds available at our boarding facility. We will negotiate with these clubs while starting an equestrian business

5.2.3 Sportsmen

All those who want to do horse riding by profession will come to us for consultancy services. We will offer comprehensive advice on what sort of breeds suit them the most and what steps they need to take for the well-being of their horses – that will lead them to win the races.

5.2.4 Horse Buyers

Regardless of their profession and interests, horse buyers from various areas visit to check out the crossbred and pure-bred horses we have in our boarding. We will advise them on what breed suits them the best and then help them purchase amongst the best options. Horse buyers are important customer groups for equine business plans.

5.3 Business Target

• Expand our boarding facility by 15% in 2 years
• Acquire resources for various cross-breeding techniques within one year of business operations
• Capture 25% of the market share within two years of operation
• Sign contracts with all of the leading riding clubs in the city

5.4 Product Pricing

To gain the needed customers for the first few months of our business and increase attention, equestrian center business plan employs an introductory pricing strategy. But time, pricing will adjust with the market rates.

Marketing Strategy of horse training business

Marketing is the backbone of every business as it is the thing that generates the finances needed to run the business and scale it. Since marketing is vital to the survival of a business, Majestic Gallops will take multiple routes towards the use of this asset.

To engage the market, Majestic Gallops will analyze its customer base as well as its competitors to gain insights into the best ways to penetrate the market. This will help the business do well not just in Pennsylvania but also in the general equine market of the US. These details will be a part of the horse training business plan for Majestic Gallops.

6.1 Competitive Analysis

• As per this equine business plan sample, Majestic Gallops will invest in employees that put customer satisfaction at the top.
• Our programs are specialized for each horse so that they can get the best support and training for the best results.
• Our expanded facility will offer world-class amenities in a conveniently accessible location for local and East Coast regional commutes. Our location is our equestrian facility business plan’s USP.
• We will provide excellent customer support to engage in a long-lasting business-customers relationship. We will also try to cater to all of our customer’s requirements in the best way possible.

6.2 Sales Strategy

This horse training business plan sample includes the following sales strategies:

• Ensure that the business has exposure in the horse training industry
• Ensure that the customers can easily find the business on the web and in other directories
• Engage in direct marketing
• Advertise the business on social media, through posters, newspapers, magazines, etc.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan of horse training business

Since the business requires trained personnel to care for horses, Majestic Gallops will either hire competent people who can adequately train horses or train employees themselves for the best service. Hiring trained employees comes at a cost, as mentioned in this horse business plan, but the business will try to achieve a balance.

7.1 Company Staff

Under this business plan for horse training, these positions will be hired for:

• Training Instructors
• Barn Farriers
• Customer Care Executives

7.2  Average Salary of Employees

Financial plan of horse training business.

As per this horse training business plan sample, Majestic Gallops will build on its profits by scaling up the business. One way of expansion would be to offer more services in the current business. Another way is to open more branches of Majestic Gallops across the US. Majestic Gallops currently only provides services so it can also be expanded for more revenue by including inventory and long-term care services.

This information on the horse training business plan helps financial investors decide whether they want to invest or not. Majestic Gallops horse riding business plan is quite like a business plan of dog walking .

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.6 Projected Balance Sheet

8.7 business ratios, other ideas for revenue generation.

Besides animal instruction and selling tack and suppliers, stable owners have other options for increasing revenue. For example, some owners buy and sell horses, in addition to instructing riders. In that case it is important to identify the breeds and sources, and where they will be sold.

Another option is to train the animals, as well as riders, for recreational riding or for participation in equestrian events. To earn extra money, there are also trainers who travel and personally compete in events for money, and they use the experiences to enhance marketing. Being professionally recognized is valuable to the marketing efforts. Customers must put a certain amount of trust in trainers and like knowing the trainer has been recognized by others as professional and competent.

It is important to consider each operational detail with great care when preparing the marketing strategy for horse training. How much insurance is needed? Who will manage the website design and maintenance? Who will maintain social media sites? Is there room for expansion in a few years? Who will provide the veterinarian services in the event an animal develops a medical issue?

• How do I start a horse training business plan?

Becoming a horse trainer usually requires specialized training or a degree related to equine care and sciences. Once you fulfill this requirement, you can work on your business plan for horse training with the help of a business consultancy firm. Its like starting a doggie daycare business plan .

• How to write a business plan for a horse training?

This horse training business plan sample gives an idea of what headings to take care of while writing a plan. You may refer to a business plan writing expert to take care of the details.

Download Horse Training Business Plan Sample in pdf

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Horse Training Business Plan

Start your own horse training business plan

Ereidi Farm

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

The Company Ereidi Farm began as a home-based part-time endeavor while the owner raised her young child.  Her many years in the industry made her well suited for the services offered by the farm.  Ereidi Farm functions as a quality thoroughbred breeding and training farm specializing in highly individualized care programs designed for each horse’s needs.  Ereidi Farm has always focused on its clients and their equine investments and genuinely enjoys assisting clients.

Our committment to our clients is long term, our focus has never ended at the point of sale – we are absolutely committed to the success of our clients and we go above and beyond the normal practices when providing our clients with all the information they require to make knowledgeable, informed decisions concerning their bloodstock investments.  Due to the demand for our services, our farm is planning on relocating to a larger facility and is now in the process of incorporating to better facilitate the accounting end of the business management.

The Product Ereidi Farm provides the following services to its market: breaking and training of young racehorses, broodmare care, and rehabilitative care for injured racehorses.  Our programs are individualized and no horse is pushed through a program just to get the job done.  Horses graduating from our programs are confident, fit, healthy and relaxed about the work, they are winners!!  We offer exceptional care for pregnant and foaling mares.  We will except high-risk mares – our farm has had a 100% live foal ratio every single year despite foaling out older and problem mares, we take very good care of these special ladies!  Our rehabilitative services have horses from all states of the region arriving at our farm for post-operative work and therapy.

The thoroughness of our care insures that these athletes recover completely with minimal complications.  All of the horses rehabilitated by the farm have gone on to useful careers, many returning to racing and running in improved form.  Our home-grown sales reflect the owner’s knowledge of equine genetics; horses from the farm’s breeding program have won races at their very first asking and have posted bullet works in training.  They are bright stars and have done a fabulous job representing the farm and their owners.  Most importantly we provide “Full Circle” service for our clients.  Our committment to their success is long lasting and at a depth not found in the racing community at large.  Their success is our success and we are deeply aware of this need within the industry.

The Market The thoroughbred industry continues to grow in the United States.  The racing industry within the state of Pennsylvania is poised for an explosive period of growth within the next year as slot machine legislation is approved and passed.  The demand for Pennsylvania-bred horses is on the rise as is the need to raise and train these individuals.  Pennsylvania is focused on becoming the premier racing state in the country, surpassing all other states in its purse and bonus monies awards, this is attracting large numbers of horses to Pennsylvania and the need for facilities to house them is growing rapidly.

This growth, coupled with the deterioration of traditionally strong racing state programs has caused a flurry of activity as owners of breeding and racing stock within these declining states seek to relocate their investments.  We have targeted these owners as well as brand new investors and Pennsylvania owners looking to upgrade their programs as clients for our expanded farm.  Our marketing programs are focused on promoting using the venues that are commonly used by those in our target market.  These programs are designed to bring potential clients to our farm, the location where sales are most frequently completed.  We realize that technology is absolutely necessary in today’s markets and we have embraced its use happily and with success.

Financial Projections Our farm has started out small for specific reasons, we are now looking forward to an expansion that will allow us to utilize all of our skills.  The owner’s husband is currently the parts and service director at his place of business, responsible for $13.3 million dollars of parts and service sales annually and maintaining a large inventory.  He has 65 employees reporting to him.  He will be mentoring the owner on the financials.

In summary, the financial projections represent the growth that will occur upon the relocation of the farm to its new world class facility.  They represent the planned growth that is possible with the securing of a facility that is large enough to accommodate the ever-growing needs of the marketplace.  We expect profits for two reasons: 1) we are timing our market expansion at a critical time, just as the Pennsylvania thoroughbred industry enters its largest growth phase in its history and 2) our services to clients and their bloodstock is exceptional, it is simply world class.

1.1 Keys to Success

A well-targeted marketing plan utilizing modern technologies as well as traditional formats.

Providing a quality facility that is attractive to our clients.

Following through on delivering the quality of service that our marketing and facility images promise.  Ereidi Farm has built its reputation by exceeding our client’s expectations.  Our attention to detail and our commitment to our clients remains unsurpassed within the industry.

1.2 Mission

The purpose of  Ereidi Farm is to increase our clients’ opportunities for successful thoroughbred investment by providing word class quality, individualized care and training programs at a safe facility which is staffed by caring, experienced personnel.  Everyone at Ereidi Farm has a deep commitment to our clients.  We believe that constant communication, unquestionable integrity and our ability to provide “Full Circle” services are the hallmarks of the success and growth of our farm.

1.3 Objectives

• Secure financing to purchase a turn-key facility that is located on a parcel of land in a developing area.  The facility must represent real value, selling for less than its cost to build and having a location that is targeted for long-term growth and development, thus increasing the value of the land. Land parcel must be suitable for other uses than farming to provide long-term development options.  Interstate access, both locally and regionally must be excellent.  Land must be located in an area that has required support structures in place suitable to a horse farm.
• Close sale on current farm facility to generate approximately $300,000 of capital to reinvest into business expansion.
• Achieve break-even status within one year of relocating to the larger facility.
• Maintain a comfortable net profit into the second and third years.

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Company summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">.

Ereidi Farm, Inc.  is a subchapter S corporation (incorporation is in progress at this time) currently located in Schwenksville, Pennsylvania.  Ereidi Farm began as a part-time business when its owner’s only child was a toddler.  Ereidi Farm’s owner has worked within the horse industry for over twenty years and the services offered by the farm are in high demand.

Due to changes in Pennsylvania’s thoroughbred racing program, the demand for quality services has escalated dramatically.  After the planned purchase of our new facility is complete, we will relocate to Pine Grove, Pennsylvania.  The farm offers exceptional “Full Circle” services to owners and breeders of thoroughbred bloodstock.  Our specialty is our highly individualized training and care programs with a strong focus on client communications and education.  We are committed to the success of our clients’ thoroughbred investments and go above and beyond the normal requirements to secure the best opportunities for our clients and their horses.

2.1 Company Ownership

Ereidi Farm was formed as a sole proprietorship by its current owner, Heidi Trimbur.  Current growth patterns of the farm have made it prudent to incorporate and its new subchapter S corporation status is now pending.  The business remains a private entity, held by its owner.

2.2 Company History

The owner of Ereidi Farm, in addition to being formally educated in equine science and management, has worked within the equine industry for over 20 years.  Ereidi Farm was officially formed as a thoroughbred facility three years ago.  The farm, despite being a part-time venture at start-up, as the owner’s child was a toddler, held close to the break-even point in its first year.

Second year sales were directly affected by the events of September 11, 2001 as the Fall yearling thoroughbred sales began on September 10th of that year.  Despite this loss, Ereidi Farm came back strong in 2002, generating a profit and sales have been profitable in 2003 with the farm’s largest sales quarter in the Fall.

The need for expansion has become obvious as the farm has had to turn clients away due to lack of space at its current location.  With the pending growth of Pennsylvania’s thoroughbred industry poised to enter an extremely lucrative period, expansion strategy and its timing have become top priorities of the farm.

Ereidi Farm specializes in providing highly individualized services to the thoroughbred racehorse industry.  These services include breaking and training of youngsters with a personalized, non-production line type of focus; broodmare management and foaling, we specialize in high-risk pregnancies and older mares; boarding for youngsters with daily attention and handling; and intensive care, post-operative rehabilitative service for recovering race horses.

Ereidi Farm breeds and sells a few quality Pennsylvania-bred foals per year and offers consulting and genetic services for those new to the industry and/or developing their own breeding programs. 

Market Analysis Summary how to do a market analysis for your business plan.">

Ereidi Farm’s largest market segment will be owners of quality thoroughbreds who do not reside in Pennsylvania.  As racing purses and breeding fund monies begin or continue to decline in several traditionally strong racing states, owners are searching for more profitable venues in which to place their horses.  This coupled with the anticipated growth in purse and bonus monies available to Pennsylvania-breds and in Pennsylvania races, has made this state an attractive possibility for owners relocating their bloodstock to more lucrative markets.

This trend is beginning to reveal itself in statistical data.  Pennsylvania has increased its U.S.  Foal Crop share (2.7%) and is now in the top ten of all producing states.  The average stallion book size has also increased and Pennsylvania now is ranked in the top ten for stallion book size.  Top ten states posting a decrease include:  California, Texas, Maryland, Oklahoma and Illinois, indicating declines in their racing programs.  Neighboring New Jersey has also posted a decline (-38.1%) reflecting the health of the industry within its borders.  Ereidi Farm has received many requests for boarding and foaling services from residents of Maryland and New Jersey reflecting the need of residents from these states to relocate their thoroughbred operations.

Research indicates that today’s thoroughbred owner is most likely to fit the following profile:  male (special note: women thoroughbred investors are on the rise although they usually invest in ownership through partnerships); average age is 45+, lower than previous years supporting overall national salary statistics and many more owners are pooling their resources and forming partnerships; income in excess of $90,500 per year; is a knowledgeable investor and takes a business approach to thoroughbred investing; focus is on quality not quantity and understands and expects to pay for better quality services; over 80% utilize the Internet and its resources.

Pennsylvania provides great opportunity for new or migrating investors as our state’s historical position of thoroughbred production and racing has been one of “low end” quality.  These facts make Pennsylvania an opportunity zone for those with quality bloodstock programs and for those who can offer quality services and facilities to accommodate incoming horses.   

4.1 Market Segmentation

Ereidi Farm has targeted the following markets for its growth strategy:

• Potential clients who are currently breeding and racing their horses in states with declining racing and breeding programs.  These clients are not only looking to relocate, they are used to spending more per horse than the traditional Pennsylvania thoroughbred owner.  States with declining racing programs will have declining Foal Crop share percentages as owners relocate their mares to more lucrative states. Declining US Foal Crop share is present in: California (-26.6%), Texas (-12.4%), Louisiana (-19.0%), Maryland (-35.8%), Oklahoma (-39.6%), Illinois (-35.4%), New Jersey (-38.1%), Virginia (-32.9%).  These figures correspond directly to overall racing programs and conditions within each of these states.  Thoroughbred owners within these states have been specifically targeted by Ereidi Farm.
• Pennsylvania thoroughbred owners who are looking to upgrade the quality of their racing and breeding programs.  Small owners who fail to upgrade their programs within the state will get squeezed out by incoming competition, upgrading will become key to staying in business. Pennsylvania has begun to prepare for the upgrading that slot machines will have on racing purses within the state by bringing in new, better quality stallions.  Pennsylvania is now in the top ten for Distribution of Active Stallions and Mares Bred, standing 103 stallions in 2002, breeding 1,009 mares in 2002 posting an average book size of 9.8% (increasing from 2001’s 8.5%).
• New thoroughbred investors/partnerships represent great opportunities and investors are comparing state programs.  Pennsylvania scores high posting not only increasing purse monies but also substantial owner/breeder/stallion owner awards.  The breeder of any registered Pennsylvania-bred foal earns 20% to 30% (depending on state stallion stands in) residual income from the bonus program if a foal finishes first through third in any Pennsylvania race, not including stakes races. The owner of the horse at the time of racing is eligible for an additional 40% in bonus awards and the stallion owner (if a registered Pennsylvania stallion) receives a 10% bonus – all residual income! Ereidi Farm will specifically market to non-thoroughbred owners with incomes in excess of $90,500 who are professionals with investment backgrounds.  We have attracted several new clients this way including non-U.S.  residents.

4.2 Target Market Segment Strategy

Ereidi Farm provides a high-end type of quality and service within our industry, it is therefore imperative that we define, locate and attract clients who have the funds available in which to purchase our services.  Understanding the historical flow of regional racing is important to client recruiting.

The better regional racing stables traditionally raced on the New York, New Jersey and Maryland circuit.  Horse that could not win in these states were shipped to the “low-end” racing circuits (i.e., smaller purse sizes) of Pennsylvania and West Virginia.  Because horses racing in these “low-end” states did not earn as much money, their owners did not have the means to pay higher prices for services, hence most farms in Pennsylvania (there are some exceptions) focus on price before quality and rely on quantity numbering to reach their quotas.

As our standards for acceptable care are quite different from the traditional Pennsylvania farm, it was most important to define and locate clients who would meet our defined “ideal client” profile.  Our clients are well-educated professionals, they utilize Internet resources to stay current with industry changes and trends.  They expect outstanding service and are willing to pay for it.

Upon securing financing for our expansion, Ereidi Farm is prepared to roll out its marketing campaign.  We will target our client base through the use of:  Internet advertising of sites frequently visited by our clients, our website, print advertising in selected magazines and national newspapers, industry sales, seminars and trade shows, business-to-business contacts, organizational memberships and open houses at our facility.

4.3 Service Business Analysis

The thoroughbred industry in the United States is the largest in the world, offering 55,127 yearly races (2001).  Japan is ranked second with 23,820 races and Australia third with 21,218 races.  Thoroughbred racing as an entertainment choice is growing.  Pari-mutual handle on thoroughbred racing in the United States topped $15 billion for the first time last year according to the statistics contained in the 13th edition of The Jockey Club Fact Book released 02/07/03.  Handle on U.S.  races in 2002 reached $15,062,131,835.  (including separate pool first reported in 2000), an increase of 3.5% against 2001.  This marked the ninth consecutive year of growth in handle.

U.S.  purses, meanwhile, advanced 0.6% in 2002 to $1,074,247,738.  The bulk of the increase was derived from states whose tracks offer expanded forms of gaming, namely Delaware, Louisiana, New Mexico and West Virginia.  Pennsylvania will join this list upon the passing of current slot machine legislation and its purse sizes will increase as will the number of thoroughbreds racing for the increased purse offerings. 

In addition to purse offerings, owners and breeders have another source of income and this income is residual.  The Pennsylvania Horse Breeders Association (www.pabred.com) manages the Pennsylvania Breeding Fund Program.  This program distributes more money, on a per foal basis, than nearly every other state-bred program now in operation.  Currently, it distributes approximately $9.5 million annually with specific percentages being awarded to owners, breeders and stallion owners.

These specific percentages are awarded to the human connections of the horses finishing first, second or third in Pennsylvania races.  The criteria for qualifying for these residual income awards are simply that the horse must be a registered Pennsylvania-bred foal.  To be a registered Pennsylvania-bred foal, a mare must foal in the state of Pennsylvania and meet residency requirements.  This has increased the demand for quality foaling and boarding facilities within the state.  Awards are based off of percentages from purse monies earned and they are a very attractive incentive to draw clients from outside of Pennsylvania.

Pennsylvania racing is poised for a lucrative and dramatic growth period, smart investors are positioning themselves within the state, preparing to capitalize on the new purse structure that slot machines will provide.  This has already lead to a shortage of stall space at tracks and farms throughout the state as well as increased demand for quality services and programs.

Ereidi Farm realizes that market entry into any expanding market is always time critical, it is our intention to be properly positioned to absorb the expanding growth as it occurs within our state.  Research indicated that most of the expected growth will occur as outside owners enter Pennsylvania.  These owners have already been targeted as those most desired by our farm, it is our strategy to have completed our relocation prior to this time in order to better provide the services the incoming owners will be searching for.

4.3.1 Competition and Buying Patterns

Pennsylvania has many small farms operating with a “Price is Vital” philosophy.  These farms were created to service the traditional Pennsylvania thoroughbred owner.  It is not our intention to run our facility in this manner, our focus has always been on exceptional quality care and outstanding customer service.

Pennsylvania does have a few large farms that do market themselves as being full service facilities.  A few of them do attempt to market to our intended client base.  These farms include:  Pin Oak Stud, Xanthus Farm, Reigle Heir Farm, Castle Rock Farm and Swatara Farm.  Of these, only Pin Oak Stud positions itself as a full service facility, the others are focused on the stallion and breeding market.

One of the most frequent comments we hear from our clients is how happy they are with the care their horses receive while at our farm.  We exceed their expectations.  Another frequent comment is how comfortable our clients feel talking with us.  Their focus is on the quality of our programs and our business relationship.  Price has not been an issue for our clientele as they understand the cost of delivering world class care and service.  These are the driving factors our clients consider when making decisions about where to send their horses.

Strategy and Implementation Summary

Ereidi Farm will focus its expansion on the following markets:  Thoroughbred owners and breeders in state racing programs that are in decline, Pennsylvania thoroughbred owners and breeders that realize they must upgrade their current stock in order to remain competitive and new potential first time owners, usually in the form of partnerships.

Attracting these clients will be done using modern technology (i.e., Internet and website resources) as well as specifically defined print advertising.  We will make ourselves more present at public venues where our potential clients gather.  Locations such as public thoroughbred sales, seminars, racetracks and trade shows have been targeted.

Our farm has been built on its reputation for exceeding clients expectations on the care of their horses and providing outstanding customer service.  These are and will remain the hallmarks of our farm.

5.1 Competitive Edge

Ereidi Farm’s competitive advantage is multi-faceted.  We are different from our competitors for the following reasons:

• Our people :  We invest in quality, client-focused people and provide them with opportunities for continued learning and skill utilization.  Our people are well-informed, engaging and embrace the Ereidi Farm “Full Circle” service philosophy. 
• Our programs : Our programs are comprehensive and individualized.  No detail is overlooked and no horse gets lost in a “production line” type of program.  Our intensive management practices have made us a number one choice for difficult youngsters and “high risk” pregnant mares. The results are tangible:  Untrainable horses have gone on to the races and our farm has a 100% live foal percentage for every year.  Our programs consistently exceed our client’s expectations, it is the number one reason our current facility is full to capacity.
• Our “Full Circle” service :  We genuinely love what we do and enjoy sharing with others!  We build long-lasting relationships with our clients through constant communication and our abilities to procure the information and resources clients need to make knowledgeable decisions regarding their thoroughbred investments.  We adhere to a high level of integrity and make sure we deliver as promised.
• Our facilities and location :  Our expanded facility will offer world class amenities in a conveniently accessible location for local and East Coast regional commutes.

5.2 Sales Strategy

Our marketing programs are designed to create a desire for new potential clients to contact us and schedule a visit to our farm as most sales within our industry are closed upon visual inspection of the facilities, personnel and current horses in training.

Our sales strategy therefore is to provide our clients with an immaculate, safe facility, staffed by knowledgeable, service-oriented people that allows them the opportunity to thoroughly inspect the quality of our programs and the health and condition of the horses in our care.  We permit inspections during training hours and our clients are always welcome.  These details, coupled with outstanding references and recorded results make closing the sale at a profitable margin possible and pleasant for all parties.   

5.2.1 Sales Forecast

Sales forecasting is based on the yearly cycle of the demand for each particular service.  Training requests will increase as the Fall months arrive and grow steadily into the Winter when they will stabilize.  Broodmare services will begin to climb as Winter approaches and the foaling season begins (late Winter through Spring).  The boarding of weanlings, yearlings and rehabilitative horses (classified together as Other in the sales charts) will begin to grow as the Fall months commence.

Our home-grown sales always occur during the fall months, it is the time of year when the market is actively looking to buy.  The dramatic rise is sales reflects the expansion of our facility.  Horses require lots of space and our current facility cannot handle a large number of horses.  This expansion will enable us to make our services available to a larger group of clients and we will gain more market share. 

5.3 Marketing Strategy

Our top marketing strategy is an ecstatic client!

Ereidi Farm’s owner has extensive experience in developing marketing campaigns, direct mail campaigns, editing communications and utilizing technology.  Our target market consists primarily of: Thoroughbred owners and breeders based outside of Pennsylvania, currently in deteriorating state racing/breeding programs; Pennsylvania thoroughbred owners and breeders who realize they must upgrade their programs to remain competitive in our state’s changing market; new investors in the thoroughbred industry, usually working within a partnership to minimize cost and risk while realizing a set quality level.

We will rely heavily on technology to generate awareness of our expansion, utilizing the Internet to reach those potential clients who are known Internet users.  Our farm utilizes digital imaging, it was the number one reason for our increased sales in the past twelve months.  Specific Internet sites in which to advertise our expansion have been identified and our farm maintains its own website.

We are building an e-mail mailing list to mass market at high speed.  Selected print publications have been targeted to reach those in deteriorating racing states as well as potential new investors.  We will increase our presence at industry sales, seminars and trade shows, continue to build our-business-to-business network and provide open houses (open farm days) for interested individuals to visit our farm.

5.4 Milestones

The accompanying table lists important program milestones, with dates and managers in charge, and budgets for each.  The milestone schedule indicates our emphasis on planning for implementation. 

What the table doesn’t show is the commitment behind it.  Our business plan includes complete provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings to discuss the variance and course corrections. 

Web Plan Summary

The owner of Ereidi Farm built and maintains the farm’s website.  The site was created to provide an Internet presence that represented the farm through digital images and text.  Our farm site provides the viewer with actual images of the horses in our care and gives them a visual comparison, easily accessible when they are shopping for services.

The text gives us the opportunity to share our philosophy on horse care and condition plus supporting our sales photographs.  Ereidi Farm has attracted new clients through its website.  Due to our viewing audience, construction was done with overall ease of use in mind.  We plan on adding digital video to the site in early fall of 2003, just in time for the sales and training seasons.  Our Web address is: www.ereidifarm.net  – Welcome!

6.1 Website Marketing Strategy

As our expansion occurs, the search engines will be reviewed and updated as will direct links to our site from other targeted sites.  As viewers visit our site, their addresses will be utilized on our e-mail direct mail list.

All print advertising will feature the Web address as will all communications.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The current management team consists of the owner and her husband.  As expansion occurs we will expand our personnel as required beginning with a training manager to oversee the actual training of the horses.

As growth continues we will need to expand management opportunities into the broodmare, young stock, financial and maintenance areas.  Long-term development might include a Stallion manager as well.  All will report to the owner and the owner will maintain an in-depth contact with all horses on the farm as well as the clients themselves.

7.1 Personnel Plan

The Personnel table indicates the number of employees required during the initial expansion.  This table will grow as the farm fills with client horses.

Additional employees that will be added during the expansion phase will be:  additional grooms, exercise riders, maintenance workers, broodmare specialists and office workers.  A stallion manager and specially skilled stallion grooms will be long-term additions.

Financial Plan investor-ready personnel plan .">

Ereidi Farm is intending to grow its cash profits by expanding to a larger turn-key facility.  Although more expensive to purchase, a turn-key facility of world class quality allows the immediate generation of cash flow at the higher end of the market.  The facility we are purchasing does not require the additional expenditure of capital resources to be fully functional, it is ready for business.

Our farm sells a service and does not maintain an inventory.

We operate on a “Cash Only” basis and choose our clients accordingly.  It is very rare that we except payments of any type although we may do so when selling one of our home-grown foals to a well-known and trusted client.  Our cash only approach allows us to maintain sufficient cash on hand and not waste valuable time and resources collecting amounts due.

At this time, the owner’s husband supplies additional capital as needed from his current job.  He will continue in his current employ.

8.1 Important Assumptions

Important assumptions concerning the thoroughbred market and Ereidi Farm’s targeted market include:

The thoroughbred market industry in Pennsylvania will continue to grow.  The added slot machine legislation will cause a dramatic growth spurt in racing programs within the state, quickly causing an increase in the demand for services within the state.

Statistics will continue to indicate the decline of racing programs in traditionally strong racing states.  Owners of bloodstock within these distressed states will actively seek out new locations in which to relocate their horses and operate a profitable, quality stable.

New owners will invest in the industry, they will be reached by large industry umbrella operations such as the NTRA and TOBA.  (National Thoroughbred Racing Association and Thoroughbred Owners and Breeders Association) respectively.

Our targeted markets will continue to post personal income growth despite fluctuating economic conditions.  They will continue to invest in non-traditional “exotic” investments such as thoroughbred racehorses.

8.2 Break-even Analysis

Break-even assumptions are as follows: 

• Per unit cost is based off of one horse with total start up-units equal to 33 horses.
• Variable costs include: salaries, advertising, maintenance and office expenses.
• Fixed costs include: mortgage/loan, taxes, insurance, utilities and cost to keep 33 horses.

Break-even calculations are shown in the following table and chart.

8.3 Projected Profit and Loss

Our planned expansion realizes a profit after total expenses are deducted from gross profit.  As growth occurs, expenses increase accordingly, however our net profit also continues to grow.  This reflects the typical cost of doing business in the horse industry as a whole.

8.4 Projected Cash Flow

Ereidi Farm is a “Cash Only” type of business.  Although we do accept payments for the horses we raise and sell, the rest of our business is cash based in order to increase cash flow and limit the farm’s liabilities.   

8.5 Projected Balance Sheet

The balance sheet in the following table shows sufficient growth of net worth, and a sufficiently healthy financial position.  The monthly estimates are included in the appendix.

Please note that specific variable and fixed expense categories have intentionally been left blank as these expenses are already figured into our “cost-per-horse” expense.

8.6 Business Ratios

Business ratios for the years of this plan are shown below.  Industry profile ratios based on the Standard Industrial Classification (SIC) code 0752.0102, [Breeding services, horses: racing and non-racing], are shown for comparison.

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