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Managing the Equestrian Facility: Answers to Most Commonly Asked Questions



Managing the Equestrian Facility: 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 rather 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, the losing money situation. 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:

(1) you must fully embrace the idea that this is a business,

(2) your success is integrally linked to customer service –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. But, 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 your business has a sound foundation before a horse ever arrives 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 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. It may also prevent you from attracting new clients. People gravitate to a well planned facility. Proper footing, great turn out, good-quality facilities, friendly knowledgeable staff, and professional, experienced, certified riding instructors 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:

(1) examining the number of boarders versus lesson horses;

(2) evaluating the existing lesson program;

(3) researching local competition to evaluate pricing;

(4) developing a marketing plan and strategy, and

(5) 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 starting out in the equine industry, a successful equine business should be designed on paper first then built. By working with a specialist in the equine industry, the facility itself can be designed to most closely meet your specific requirements.

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:

(1) locate and train staff,

(2) devise programs for feed, care and turnout,

(3) perhaps even 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 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. Creating true equine careers where staff is 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. Minimize the potential for this scenario by being a good employer, paying good and fair wages and by creating a great working environment.



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 profitable. Several nationally recognized equine certification bodies including the Certified Horsemanship Association (CHA) http://www.cha-ahse.org/ and the American Riding Instructors Association (ARIA) http://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.

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. Suddenly your business will attract gifted and loyal employees which translate to attracting and keeping dedicated, happy, loyal customers.

About Equestrian Services, LLC and Equestrian Management:

Founded in 2000, Equestrian Services, LLC, plans, designs and manages equestrian amenities for communities and resorts, worldwide. Setting the standard for equestrian facilities, the company offers the only branding opportunities, under the Karen and David O’Connor and John Lyons names, for builders and developers offering equestrian amenities. Equestrian Services provides comprehensive services from feasibility studies to equestrian facility management. Equestrian Management, a division of Equestrian Services, develops the program elements and provides management and staffing of equestrian facilities. Equestrian Services is headquartered in Charlottesville, Virginia. For more information, visit http://www.equestrianservicesllc.com.

This article is reprinted with permission from Equestrian Services LLC, February 2008.



PHOTO Courtesy: Equestrian Services, LLC

 

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