An Industry Whose Time Has Come

By Libby Dufour for Equestrian Services, LLC

There's an old joke in the equine industry that says "What's the best way to make a small fortune in horses?" The answer? - "Start out with a large fortune." It's long been an accepted idea that businesses in the horse industry are not run like other businesses - they are emotionally driven instead of economically driven. Many of the people running these enterprises have shunned the business world. They have, in fact, avoided dealing with people by working with animals instead. These factors have lead to a variety of problems in the industry. Many of these businesses are not financially sound, and the "isolation" of barn operators fosters an "old school" mentality which resists change.

Equine businesses often count themselves lucky if they break even. Clearly, this is not a desirable way to run a business. Something needs to change to help the equine industry become a place where merely breaking even is a thing of the past. Equestrian Services has launched a new division - Equestrian Management, LLC and an Equestrian Facility Operational Support (FOS) program to help bring about this change.

The "old school" mentality of barn operation consistently overlooks or under appreciates four main components of running a successful equestrian business: (1) you must fully embrace the idea that this really is a business you are running (2) your success is integrally linked to customer service - this is a service based industry so you will have to learn how to serve clients (3) you must have a business plan - this will help you have a clearly defined vision of what your services are as well as a detailed look at your competition and (4) you will need a solid operational budget detailing your revenue projections as well as your overhead costs.

One of the main obstacles that barn owners face is the lack of time to devise and implement new business strategies. This makes it extremely difficult to effect change. After hearing the same questions asked again and again, we have addressed some of them below.

My barn is losing money. How can I fix that?

Ideally you would want to ensure your business has a sound foundation before a horse ever arrives at your barn. This would include designing an efficient facility that promotes an economical and well organized use of your labor force. As with many businesses, a poor design or sub-standard facility often times will erode profits, and can eventually lead to its ultimate closure. An equine business is no different.

If your barn is struggling, first you will need to make an in-depth assessment of both your program and your existing facility. There may be problems with the existing structures that need to be addressed before the business can become profitable, and unfortunately this can involve the need to spend more money before you can make money. If the ring footing is poor, the arenas were installed incorrectly, the hay barn is located far away, your paddocks are not laid out effectively, your fencing is unsafe and falling down, or you are not maintaining good pasture and forage because you have no pasture maintenance plan, then these are all things that can detract from your efficiency and profit, as well as prevent you from attracting new clients. People will gravitate to a nice facility, and having your facilities in poor condition is a sure-fire way to turn potential clients off. Proper footing, great turn out, good-quality facilities, friendly knowledgeable staff, and professional, experienced, certified riding instructors - these are the benchmarks of a quality program and the components which will attract and sustain an active client base.

After the facilities have been evaluated, a detailed analysis of the available resources should be conducted. A new program should then be designed specifically tailored to your individual barn. Components of an assessment would likely include: examining the number of boarders versus lesson horses; evaluating the existing lesson program; researching local competition to evaluate pricing; developing a marketing strategy, and assessing current staff and responsibilities. Once this assessment is complete, a customized program can be designed for the barn, covering everything from staff to lesson programming to horse care. The program should be designed to maximize profit and efficiency, using criteria specifically tailored to the barn.

I'm interested in opening a barn. I've been around horses for years but I don't know much about them beyond riding. What can I do?

Plan your facility thoroughly. For those just starting out in the equine industry, a successful equine business should be built on paper first then put in the ground. When beginning the planning and design process, it is a good idea to work with a specialist in this industry. By working with someone familiar with the needs and demands of an equestrian business, the facility itself can be designed to most closely meet your specific requirements - which when considering a commercial operation, generally means the most profitable. It is also not hard to appreciate the value of having your facility professionally planned and designed when you consider putting your outdoor riding ring in the wrong place (or even simply building it incorrectly) could represent an additional expense of tens of thousands of dollars.

Once your facility is built, you will want to implement the operational program you designed. To begin offering stalls for boarding and riding lessons, you will need to: find and train staff; devise programs for feed, care and turnout; and perhaps even locate and selecting lesson horses. Equestrian Management offers a variety of arrangements, like the FOS program, that provide turn-key start-ups for barn owners. Another helpful service for first time equine business owners is customizable on-site visits, which can help ensure that a facility is running smoothly, and has the ability to be flexible to the growing and changing needs of facility owners. For novice horse owners and operators, Equestrian Services also offers twenty-four hour support and guidance in the running of a new facility.

My barn manager left and I have no one to run the barn. How can I find a new one quickly and how can I prevent this from happening in the future?

One of the largest problems facing the equine industry is the high turnover rate of employees. A large part of this problem is due to what we like to call the "emotional slavery" mentality. The majority of equine professionals are underpaid, they are overworked, they have no health insurance, let alone vacation time. When a barn operates with a poorly designed program, it is unable to maximize revenues and potential profits. When faced with the possibility (or reality) of losing money, the typical reaction is to cut costs. Nine times out of ten, the cost cutting comes in the form of underpaying and/or overworking the barn employees. People are expected to work with horses because they love horses, not because they deserve make a decent salary that can support themselves and their family. If wages and benefits mirrored other segments of the business community, it would help foster loyalty, pride and ownership. Creating true equine careers where staff are paid a fair, competitive wage for their experience, training and management skills would decrease the turn over rate dramatically. This is much more likely to occur when barns are operating with effectively planned programs.

Because effective programming is not widely practiced, it is not uncommon for a barn to be left in the lurch when a barn manager decides to leave. Without a qualified manager, a barn can quickly turn into a situation where horses are left without necessary care. There have even been situations where a barn has been forced to close because qualified staff was not available to operate it. With the involvement of an outside staffing service, like Equestrian Management, there is always a back-up system of qualified individuals in place should the need arise. If a barn manager leaves or is indisposed, our support staff can arrange a temporary and/or permanent replacement, with no down-time to the barn. This alleviates the stress of worrying about a replacement, while providing stability and security to the patrons of the barn and the horses.

Good help is hard to find. Where can I get qualified people?

It takes comprehensive training and knowledge to be able to run a barn effectively, safely and in a profitable manner. Several nationally recognized equine certification bodies (Such as the Certified Horsemanship Association - CHA (www.cha-ahse.org) and the American Riding Instructors Association - ARIA (www.riding-instructor.com) are recognizing the need to provide a standard for barn managers as well as riding instructors. Although previously the predominant certification has been in riding instruction, both organizations have recently introduced new forms of stable management certification. By requiring barn management and instruction staff to complete one of these certifications, you help to ensure that your staff is not only professional, but has a vested interest in their position. In addition to certification, all Equestrian Management barn managers and instructors have undergone a rigorous screening process with a thorough evaluation of their business and customer service skills. We provide you with candidates who have the service industry skills needed for business, as well as the requisite horse knowledge.

How do I ensure that my program keeps running smoothly?

When a facility has been designed (or redesigned) for optimum use and efficiency, a comprehensive program has been implemented, and a competent, well-trained staff is in place, these components all lend themselves toward a smooth and efficient business. But, as with any service industry, especially those involving animals, the equine industry can be unpredictable. So for those occurrences that can't be predicted, having an outside support provider, like Equestrian Management can offer customized follow-up, evaluation and continued support to make sure that the facility continues to run efficiently throughout the life of the program. We also can be available for twenty-four hour support and assistance, in the event of emergencies or problems. Having employees and a support system specifically tailored to your facility will not only ensure that the barn runs smoothly, but will be a draw for other horse owners to come to the barn.

In the end, the world of horses is a fast-paced and exciting one, which frequently leaves little time for personal assessment and growth. The main purpose of Equestrian Management's FOS program is to create and implement effective and efficient programming for businesses within the horse industry. By working with a company whose services are specifically tailored to your own, you can ensure you are getting the program you need, while not having to sacrifice countless hours of your own time to get it. So the next time you look at your bottom line and think it would look better in black than in red, call Equestrian Management and let us help you make that dream a reality.