In the past, developers had only two options for running their equestrian facilities.  The first was to hire their own employees.  Many developers are not horse people so this option often is problamatic.  How would you know if the Barn Manager knew what he or she was doing?  When you don't know yourself?  

In addition most Home Owner Associations are not set up to run payroll - they are set up for contract vendors.

The second option was to lease the facility to an outside operator.

Below I examine some current beliefs....

"I can lease out the facility to an operator or concessionaire and my facility will operate effectively. "

Fact: This is possible, but there are a couple of reasons as to why it is unlikely. First, there is a revenue shortfall in virtually all equestrian business models; that is why no big businesses feature a “line” of equestrian riding and boarding facilities. Most people get into horses because they love horses – not because they expect to get rich. And many of those people work with horses because they relate more effectively to horses than to people. Passion often overrides business sense. Without some form of subsidy, sooner or later your operator will realize they are coming up short, and some part of your program or facility operations will start to suffer – which will put your investment at risk. Second, many concessionaires are effectively sole proprietors. What happens if your operator is unable to work for an extended period or has to leave the area? What is the contingency plan to care for that barn full of horses?

When you work with an outside operator, here are some things to consider:

1. Do they have all of the necessary insurance? Liability? Care, Custody & Control? Workers Comp? Can they even get liability insurance? Many insurance companies will no longer insure HOA-owned equestrian facilities.
2. What credentials do they have? Certifications? Education? CPR? First Aid? Do they bring systems and protocols?
3. What is the motivation for this operator to cater to the needs of your community? Chances are there are none. Their sole motivation will be to make enough money to survive. There is much less value to you and your residents in this model.
4. Will they fund a capital replacement fund? Do they care about the facility if they do not own it? Again, since there is no money, they can’t afford to.
5. Understanding there is no money in this business, what corners are they cutting? Generally the corners that are cut involve staffing. Overworking and underpaying –this leads to inconsistent care and, ultimately, a hostile working environment that affects your residents, members and guests.
6. How will your residents provide feedback? And who is ultimately accountable? Generally, in this business, the buck stops with the trainer or, perhaps, the barn manager. What protocols will be in place if the residents are unhappy?

Helpful Hint: We believe success is created through a holistic, sustainable approach – that the needs of the developer, stakeholders, horses, employees and, most importantly, our customers are met from day one, all the way out to 10 or 20 years down the road. The only equestrian model that works and is sustainable is one that operates within a community, resort or a municipality – where everyone shares the cost and the benefits.

Continuity of service is paramount to success.  Equestrian Management, LLC is the first professional equestrian management company in the world.  We can make it work.

Posted by jenniferd at 11:45 AM | Link | 0 comments