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Developing the Equestrian Community Model: Great Idea, But How?
By Michael & Jennifer Donovan, Equestrian Services, LLC
Equestrian community living has been around for decades. California, always the community-living trendsetter, began designing and planning these equestrian communities in the 1970s. Designed after successful golf-community living, this concept offers a community a new theme for people with similar interests to live and interact around a common element – the horse.
Today, as golf courses reach saturation levels, many developers have adopted a new anchor for their developments – the equestrian amenity. The growth of the equestrian community model has skyrocketed at staggering rates, and at last count, there were nearly 350 equestrian communities in the United States, all planned or in the process of being built within the last five years.
The following is a list of key points and questions community builders and developers should address to ensure success of their equestrian community. With appropriate planning and support, savvy builders and developers can tap into this growing market.
- Consider and address all the program-specific requirements in a community-based equestrian facility. We know from experience that there is no “one-size-fits-all” model when designing an equestrian community, unlike other amenities such as golf, where there are standard offerings for the golfer. The diversity of horse activities, from dressage and eventing, to reining and western pleasure riding, as well as the different equipment and riding environment each requires, will all need to be considered.
- Are the amenity capital costs in line with your development pro forma? Although requiring far less capital investment than a comparable golf amenity, does the equestrian amenity make overall financial sense? Cost basis for the land, number of lots and demographic of your buyer all play a part in determining potential ROI. Additionally, in a slow real-estate market, the increase in sales-pace obtained from offering a properly-designed and executed equestrian amenity can add significant value to a project. Performing a feasibility study will allow you to evaluate the benefit that an equestrian amenity can bring to your project.
- Consider the costs to run this operation on a monthly basis. Recognizing that all community-based equestrian amenities operate at a deficit, they must be subsidized, either through an HOA assessment or a club-membership program. Assess its operational feasibility and address these issues early on in the planning phase. A thorough understanding of these costs is paramount to the long-term sustainability of an equestrian amenity.
Identify who will manage and/or operate the equestrian facility. Consider hiring a professional equestrian management company who can provide years of quality experience with a talented, trained staff offering exceptional service to the residents and their horses. The previous options – allocating a current staff person unfamiliar with the equestrian lifestyle in a community setting, or leasing the facility to an outside operator unfamiliar with the overall objectives and needs of the community and the developer (and only interested in serving their own agenda) – have failed time and again. An organization dedicated to hospitality-based equestrian management will bring the best expertise, long-term, and will ensure both today’s and tomorrow’s objectives are met.
Today’s equestrian buyers are hungry for these developments. However, they are also leery and need assurance. Continuity of service is critical after many equestrian models failed in the past. However, with such high demand for living the equestrian community lifestyle, this market has unmet needs of which a savvy developer can take advantage. By approaching the equestrian amenity development similarly to designing a golf amenity, including proper planning, design, implementation and management, there is an opportunity to set an exceptional standard in equestrian living and successfully enter an exciting market.
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Managing the Equestrian Business:
Answers to Most Commonly-Asked Questions
There’s an old joke in the equine industry: “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 run differently from other businesses. They are more emotionally-driven than economically-driven. Many of the people running these enterprises have a preference to work with animals, rather than other people. However, 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 operate in the red, meaning they lose money. Clearly, this is not a desirable way to run a business, and changes need to be made to help the equine industry become a place where, at a minimum, you are breaking even - and that includes paying yourself a salary you can live on.
The “old-school” mentality of barn operation consistently overlooks or under-appreciates four main components of running a successful equestrian business:
- You must fully embrace the idea that this is a business;
- Your success is integrally linked to customer service – you will have to learn how to serve clients;
- You must have a business plan – this will help you to have a clearly-defined vision of what your services are, as well as a detailed look at your competition; and
- 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. However, we have addressed some of them below.
My barn is losing money. How do I make my barn profitable?
Ideally, you would want to ensure that your business has a sound foundation before any horses arrive at your barn. This includes designing an efficient facility that promotes an economical and well-organized use of your labor force. As with many businesses, a poor design or substandard facility will oftentimes erode profits, and it can also 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. It may also prevent you from attracting new clients. People gravitate to a well-planned facility. Proper footing, great turn-out, high-quality facilities, a friendly, knowledgeable staff, and professional, experienced, certified riding instructors are the benchmarks of a quality program, as well as the components that 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:
Running the numbers, running the numbers, running the numbers!
And include everything – all expenses, including your own time;
- Examining the number of boarders, versus lesson horses;
- Evaluating the existing lesson program;
- Researching local competition to evaluate pricing;
- Developing a marketing plan and 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 (with the understanding that profit margins are always low) 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 starting out in the equine industry, a successful equine business should first be designed on paper, then built. By working with a specialist in the equine industry, the facility itself can be designed to most closely meet your specific requirements. Understand all the opportunities and challenges before you launch into your business. Do you appreciate the fact that you’ll be making a lifestyle choice? Do you appreciate that you won’t get rich running an equine business? What about land costs? Capital improvement costs? Maintenance? Responsibility? Liability? Spending most of your time managing other people? If you are still saying yes – then proceed.
Once your facility is built, you will want to implement the designed operational program. To begin offering stalls for boarding and riding lessons, you will need to:
- Design your lesson program;
- Run the operational numbers to see what your staffing needs will be;
- Locate and train staff;
- Devise programs for feed, care and turn-out, emergency protocols (human and equine), etc.;
- Realize there is not much money in boarding – to help off-set your operational costs, you’ll want to offer a robust lesson program; therefore, you’ll need to locate and select lesson horses.
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 greatest issues facing the equine industry is the high employee-turnover rate. So many equine professionals are underpaid, overworked, have no health insurance, and get minimal 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 10, the cost-cutting comes from under-paying and/or over-working the barn employees. People are expected to work with horses because they love horses, not because they deserve to make a decent salary that can support themselves and their family. Creating true equine careers, where staff is paid a fair, competitive wage for their experience, training and management skills would decrease the turnover 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. Minimize the potential for this scenario by being a good employer, paying good and fair wages, and by creating a great working environment.
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 will all lend themselves towards a smooth and efficient business. Suddenly, your business will attract gifted and loyal employees, which will translate to attracting and keeping dedicated, happy, loyal customers.
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In the News
Equestrian Services, LLC is making headlines and bylines again. We have been featured in two great articles - "Communities Pony Up" in The Crittenden Resort Report (PDF) and "Developers Build Equestrian Communities" in The Denver Post.
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New European Sponsored Rider
EQSV Awards Annual Sponsorship to European Equestrian Trainer/ Rider Didier Kempter
First European Equestrian Sponsorship Recipient is also a Certified John Lyons Trainer
(Charlottesville, VA – April 2008) − Equestrian Services LLC, the company setting the standards for planning, designing and managing equestrian amenities for resorts and communities worldwide, is pleased to announce that Belgium professional equestrian trainer/rider Mr. Didier Kempter has been selected as the first European recipient of Equestrian Services’ annual sponsorship. The sponsorship, established in 2004, recognizes one equestrian each year and demonstrates the company’s support of riders in achieving their equestrian dreams.
“Equestrian Services is committed to offering a sponsorship that recognizes riders for their achievements, their willingness to promote the equestrian sport through professionalism, and for their kind treatment of horses, safety and equestrian leadership capabilities,” said Jennifer Donovan, founder of Equestrian Services, LLC. “We are pleased to sponsor Didier, a professional trainer specializing in horse education who will introduce the John Lyons Signature concept to Europe. Didier is also the first Belgian/European trainer certified by John Lyons.”
For more than 25 years, John Lyons, known as “America’s Most Trusted Horseman,” has taught and inspired people to work with and strengthen their relationship with their horses. After having a successful show career and gaining practical horse knowledge on his Colorado cattle ranch, John began giving training clinics and symposiums two decades ago, which blossomed into world-renowned status. In 2005, Didier attended an intensive six-month certification and training program at the Lyons' facility in Colorado. He returned to Belgium as a Certified Lyons Trainer.
“I’m honored to be the first European recipient of the Equestrian Services sponsorship,” said Didier Kempter. “In 2003, my passion for horses convinced me to turn to new training and educational methods, including training with John Lyons. I’m thrilled to bring the Lyons knowledge to Belgium and introduce the John Lyons Signature concept throughout Europe.”
John Lyons said, “It is wonderful that Didier has been recognized by Equestrian Services. My wife Jody and I recommended Didier for the annual sponsorship for showing his equestrian leadership and willingness to be a John Lyons Signature ambassador in Europe. He is bringing a level of excellence and quality to horse owners and horse lovers throughout Europe.”
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Signature Equestrian Facilities – Come Experience the Difference!
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The Signature Experience - O’Connor & John Lyons Signature Equestrian Facilities
Quality Facilities
Quality Horse Care
Hospitality Style Staff & Concierge Services
Welcoming to all Riding Disciplines
Come experience the Signature Difference! |
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O'Connor Signature News:
Equestrian Olympians Karen and David O'Connor Speak at Ribbon-Cutting Event for The Oaks at Lake City
Eventing Champion Theodore O'Connor, the 2007 USEF Horse of the Year, Made a Surprise Appearance at the Ceremony; More than 250 Equestrians, Horse Lovers and Potential Residents Attend The Oaks of Lake City, FL, Equestrian Dedication
(LAKE CITY, FL, March 12, 2008) - The Oaks of Lake City (www.theoakslakecity.com), a new ruralism, residential community, hosted a ribbon-cutting ceremony attended by more than 250 people, including equestrians, horse enthusiasts, nature lovers and potential residents on Monday, March 10, celebrating the world’s first exclusively-branded O’Connor Signature equestrian facility. Associated with renowned equestrian Olympians Karen and David O’Connor, the community, which combines the best of rural living with the best of suburban living, features a 33-stall custom barn; a David O’Connor-designed cross-country course, and other equestrian amenities.
Highlights of the March 10 event included a formal ribbon-cutting ceremony, an interior/exterior tour of the barn and its amenities, and tours of the land and lots for sale. Karen O’Connor, named Equestrian of the Year by the United States Eventing Association (USEA) for her 2007 equestrian achievements, and David O’Connor, current president of the United States Equestrian Federation (USEF), made a special dedication during the ceremony. As a symbol of good luck, the O’Connors hung a silver-engraved horseshoe over the barn entrance.
Following the ribbon-cutting ceremony, Karen and Eventing Champion Theodore O'Connor, the 2007 Farnam®/Platform® USEF Horse of the Year, “christened” the Oaks cross-country course for the crowd. Theodore O'Connor was recognized from among all USEF breeds and disciplines as the nation's most exceptional horse in 2007.
“The ribbon-cutting ceremony was our opportunity to share with equestrians from near and far, area residents and potential home purchasers our excitement about The Oaks of Lake City community,” said Brad Dicks, Owner, Dicks Realty. “We are pleased to bring the world’s first O’Connor Signature branded Equestrian Facility to Florida, Lake City and Columbia County.”
The event also featured a formal welcome to Shelley Van den Neste, the new general manager and riding director for The Oaks’ equestrian facilities. With more than 17 years of experience managing public, commercial and residential community equestrian facilities, Shelley is also an accomplished rider, instructor and coach, with achievements including a graduate with “distinction” from the United States Dressage Federation (USDF) L program for judges in training, as well as USDF Bronze and Silver medals. She has also coached riders to achieve their Bronze and Silver medals in the dressage discipline. Additionally, Shelley has riding, teaching and showing experience, as well as accomplishments in other disciplines, such as Regional and National championships in saddleseat, Western pleasure, hunt-seat and equitation.
Located in Northern Florida - northwest of Gainesville and west of Jacksonville - the O’Connor Signature at The Oaks features the following special characteristics and amenities:
More than 348 acres of open space and parks;
- More than 40 acres of fenced pasture;
- 234 home sites, including 136 equestrian estate lots, with access to concierge-style services offered at the central facility, as well as 98 traditional lots;
- 76-acre Gold O’Connor Signature competition-quality equestrian center;
- A custom 33-stall barn;
- Outdoor arena;
- Covered arena and covered round pen;
- David O’Connor-designed cross-country course;
- Strategically-located Equestrian Recreation Areas (ERAs);
- 15 miles of looped multi-use trails for hiking, jogging and walking, which meander throughout the community;
- Dog park.
The Oaks was designed in partnership with Dicks Realty of Lake City, the O’Connors, and Equestrian Services, LLC, the company setting the standards for planning, designing and managing equestrian amenities for resorts and communities worldwide. The construction of the 1,222-acre community is modeled on successful golf-industry branding and management concepts, similar to communities that boast an Arnold Palmer or Jack Nicklaus golf course. In addition, the community features superior amenities and facilities for the equestrian and nature lover alike. It provides an opportunity for residents to enjoy country living only 35 minutes from Gainesville, which was nominated “The Best Place to Live in the USA” in 2007 by USA Today.
“Equestrians can be assured that the equestrian staff, trained and certified by us, will provide the finest services to assist our horses and riders within the community,” said David O’Connor. “We know that horse people wish to be near their horses, and the Oaks will be an equestrian paradise for the horse lover.”
Nearly two million people own the 9.2 million horses in the United States, with another two million people involved as equestrian volunteers or engaged in the equestrian lifestyle through family affiliation, according to the American Horse Council Foundation (AHCF).
For more information about The Oaks of Lake City, please visit www.TheOaksLakeCity.com.
About The Oaks of Lake City:
The Oaks of Lake City is a new ruralism community, which encompasses the best of rural living with the best of suburban living. Devoted to equestrians and nature lovers, The Oaks' grand 1,222-acre, O’Connor Signature equestrian community provides an opportunity for residents to enjoy country living without the fuss. Custom designed in partnership with Dicks Realty, equestrian Olympians David and Karen O’Connor, and Equestrian Services, LLC, The Oaks boasts superior amenities and facilities for the equestrian and nature lover alike.
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Submit a Question:
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 profitably. Several nationally-recognized equine certification bodies, including the Certified Horsemanship Association (CHA) and the American Riding Instructors Association (ARIA), are recognizing the need to provide a standard for barn managers, as well as for riding instructors. Although the predominant certification has historically 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 are helping to ensure that your staff is not only professional, but also has a vested interest in their position.
One of the most important questions I would ask a potential barn manager or instructor candidate is this: “If you had to choose only one field, would you rather work with horses or people all day?” If they answer “horses” – I know that they have no place in a business that is ultimately about serving people. Horses are not the clients or customers – people are, and many in the industry have forgotten this. This is a customer service (people) oriented business. Find instructors who love teaching children - the type that would be teaching first grade if they weren't giving riding lessons. Find barn managers that love people and have good business and people-management skills. Be sure to ask the right questions when you are searching and interviewing – contact the organizations above, as well as colleges that have equine studies programs. Many of these colleges have added equine business management to their curriculums.
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