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Horse boarding business plan for your own stable
Do you want to start a horse boarding business? Well, it can prove highly profitable for you, if you have a prior experience with horses. A Global Horse Population report in 2006, stated that the United States has the most number of horses in the world; about 9.5 million and many equine owners lack the time and space required for proper horse care.
But before starting a horse boarding business, you have to make a comprehensive and effective business plan. For your guidance, we are giving here the sample business plan of a horse boarding startup named, ‘Chris Equestrian’.
Executive Summary
2.1 The Horse Boarding Business
Chris Equestrian will be located in New Jersey, at a ten-minute drive from the Jersey Shore. The business will be owned by ‘Chris Sandler’ and will be started on a land of 56 acres initially.
Chris hasn’t much experience in dealing with horses, but he will obtain the services of top equestrians and horse trainers before he start horse boarding business.
Management of Horse Boarding Real Estate
Chris Equestrian will be managed by Chris, yet experienced and licensed workers will be hired for barn help and horse training.
2.3 Customers of Equestrian Center
We will be serving in one of the richest locations of the United States, with an average household income of $354,479, so our customers will be the people who won’t hesitate to spend on quality services for their pets.
2.4 Target of Horse Boarding Facility
The company aims to provide the highest quality service to its customers and become the best horse boarding center in New Jersey.
Company Summary
3.1 Company Owner
Chris Sandler, an MBA from the University of Cambridge, will be the owner of Chris Equestrian. Chris is a wealthy landlord in New Jersey and hasn’t much experience with horses, yet he has obtained the services of expert equestrian riders and horse trainers for operating his business.
3.2 Why the Horse Boarding Business is being started
Chris has become one of the wealthiest landlords of New Jersey after receiving his share from the legacy. To invest his money, he has found horse boarding business the most amusing and the most profitable business too. He doesn’t want to limit his business to just a boarding center, he is looking forward to the years when he initiates a polo ground besides, his boarding center.
3.3 How the Horse Boarding Business will be started
Chris Equestrian will be a registered and licensed horse boarding center with startup land area of about 56 acres. Chris has obtained the services of a contracting firm which is nearly half-way in turning that vast area into a beautiful pasture, mowed ground, jumpers, rings, and shed barns with staunch borders.
Chris has planned every aspect of his business wisely, with the help of professionals. He has even employed a team to write him a profound business plan on how to start a horse boarding business and to make a record of horse boarding business expenses for meeting all the possible financial activities such as grooming products, vaccines, washing equipment, food and other supplies.
The detailed start-up requirements, expenses, total assets, investments, as forecasted by experts, is given below:
| Start-up Expenses | |
| Legal | $55,300 |
| Consultants | $0 |
| Insurance | $32,750 |
| Rent | $32,500 |
| Research and Development | $32,750 |
| Expensed Equipment | $32,750 |
| Signs | $1,250 |
| TOTAL START-UP EXPENSES | $187,300 |
| Start-up Assets | $0 |
| Cash Required | $332,500 |
| Start-up Inventory | $32,625 |
| Other Current Assets | $232,500 |
| Long-term Assets | $235,000 |
| TOTAL ASSETS | $121,875 |
| Total Requirements | $245,000 |
| START-UP FUNDING | $0 |
| START-UP FUNDING | $273,125 |
| Start-up Expenses to Fund | $11,875 |
| Start-up Assets to Fund | $15,000 |
| TOTAL FUNDING REQUIRED | $0 |
| Assets | $23,125 |
| Non-cash Assets from Start-up | $18,750 |
| Cash Requirements from Start-up | $0 |
| Additional Cash Raised | $18,750 |
| Cash Balance on Starting Date | $21,875 |
| TOTAL ASSETS | $0 |
| Liabilities and Capital | $0 |
| Liabilities | $0 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $0 |
| Capital | $0 |
| Planned Investment | $0 |
| Investor 1 | $332,500 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $695,000 |
| Loss at Start-up (Start-up Expenses) | $313,125 |
| TOTAL CAPITAL | $251,875 |
| TOTAL CAPITAL AND LIABILITIES | $251,875 |
| Total Funding | $255,000 |
Services for customers
Chris Equestrian is aimed to provide a trustee center where you can leave and take your horses anytime. After a great research on how to start a horse boarding facility, Chris has decided to provide the following services to his customers. If you are searching for how to start a horse farm business, you can take help from here.
- Daily Care: Our daycare services include feeding your horses, cleaning their stalls and regulating their physique by providing proper exercise.
- Horse Training: Chris Equestrian also provide horse training service by expert trainers, for the people who procure at least our 6-month membership.
- Veterinary Services: When your horses are in Chris Equestrian, you are relieved about the medication and veterinary services of your horses. We have hired the top veterans of our county for taking care of your horse.
- Horse Riding: We have a large land for you to come anytime and enjoy riding your horse through our maintained pastures and jumpers’ rings. If you have difficulty in riding, our trainers will help and train you too.
Free transportation will be provided to transport horses from your location to our center. Charges on our services will be based on the number of days, you want to board your horses. Extra payment will be charged if you want an extra-large barn house. However, we’ll provide a 10% discount on 6-months and 15% on 12-months membership.
Marketing Analysis of horse boarding business
The most deciding part of the success of your business is incorporating accurate marketing analysis in your horse boarding business plan. If you are going to start a horse boarding business, you must analyze in your horse boarding facility business plan whether the market has the potential of your startup or not, or how’ll you cater your business with a long list of competitors.
Well, you can have a help from horse boarding business plan examples available online or can take help from this horse boarding business plan free of cost. But it is advised to acquire the services of professionals to make you a horse farm business plan template, like Chris who has hired experts to write a horse farm business plan according to his expenses and needs.
5.1 Market Trends
According to IBISWorld, the horse equestrian and related businesses are growing at a rate of 1.1% per year. There are currently more than 174 thousand such businesses running in the United States and are responsible for employing more than 210,225 people generating a revenue of $8 billion annually. These figures show that it will prove beneficial for you to open up a horse boarding center, especially in the regions of well-off housing communities where people are in dire need for some facility to take care of their animals.
5.2 Marketing Segmentation
The success or failure of any startup depends upon how thoroughly you know your potential customers. By adding a part of marketing segmentation you will help yourself in gaining and maintaining customers. Our experts have claimed the following categories to be our potential customers:
The detailed marketing segmentation of our target audience is as follows:
5.2.1 Individual Households: The biggest category of our customers will be formed by the residents living in New Jersey. Most people require a guidance on taking care and training of their animals or a place where they can leave their animals anytime. As we are in an area where people have high incomes and they don’t hesitate to spend a large money on quality services, so our boarding services will be availed much by them.
5.2.2 Horse Dealers: The next category of our customers will be the horse dealers near our vicinity, who’ll need our services of training and grooming their horses. Although there are not many, but we’ll offer special packages and free transportation facilities to attract them.
5.2.3 Animal Shelters: There are more than 3500 animal shelters in the United States for accommodating stray or abandoned animals. Such shelters also need horse boarding centers for the training and medication of stray horses.
The detailed market analysis of our potential customers is given in the following table:
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Horse Dealers | 32% | 11,433 | 13,344 | 16,553 | 18,745 | 20,545 | 13.43% |
| Individual Households | 48% | 22,334 | 32,344 | 43,665 | 52,544 | 66,432 | 10.00% |
| Animal Shelters | 20% | 12,867 | 14,433 | 15,999 | 17,565 | 19,131 | 15.32% |
| Total | 100% | 46,634 | 60,121 | 76,217 | 88,854 | 106,108 | 9.54% |
5.3 Business Target
Our target is to provide the best and the most trusted place for people to leave their horses with us. We aim at balancing our costs of startup with our sales within the six months of launch. Our target is to expand our business, buy nearby land and open up a polo ground just after the two years of launch.
5.4 Product Pricing
We have priced our services at the similar rates as our competitors, as people of our vicinity don’t compromise dollars over the quality, but we ensure you that we’ll provide the best services in town. Our prices for horse stalls are $590.00 a month for a regular box stall and $630.00 a month for an extra-large stall. Besides, we have different packages for our membership.
Note
The pet industry is one of the few industries which have seen a consistent increase in revenue.
Strategy
Before starting horse boarding business, Chris has defined the ways he will use for promoting his sales. If you are formulating your sales strategy for business, you can take help from this sample business plan of Chris Equestrian on how to run a horse boarding business.
6.1 Competitive Analysis
Chris Equestrian will have to face a lot of competitors; however, our unique competitive aspects will lead us through the way. Our competitive edge will be our better quality and luxurious services within the same rates as that of our competitors with 24-hour on-site monitoring. We are having the largest land area in the whole county with a full course of jumps for horse riding. Lastly, we will offer exceptional customer service where we will treat our customers and their horses with extreme respect and love respectively.
6.2 Sales Strategy
We’ll advertise our new startup by the following means:
- We’ll send introductory letters to the lords of New Jersey.
- We’ll have a big party on the day of inauguration marked by the horse riding and horse dance show.
- We’ll provide free transport for horses from your location to our center.
- We’ll give free barn rooms to first ten customers.
6.3 Sales Forecast
By analyzing our market segmentation strategy, our experts have forecasted the following sales on the yearly basis which are summarized in the column charts.
The detailed information about the sales forecast, total unit sales, total sales is given in the following table.
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Daily Care | 1,887,030 | 2,680,320 | 2,588,240 |
| Horse Training | 802,370 | 815,430 | 823,540 |
| Veterinary Services | 539,320 | 770230 | 1,002,310 |
| Horse Riding | 265,450 | 322,390 | 393,320 |
| TOTAL UNIT SALES | 3,494,170 | 4,588,370 | 4,807,410 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Daily Care | $140.00 | $150.00 | $160.00 |
| Horse Training | $600.00 | $800.00 | $1,000.00 |
| Veterinary Services | $700.00 | $800.00 | $900.00 |
| Horse Riding | $650.00 | $750.00 | $850.00 |
| Sales | |||
| Daily Care | $2,149,800 | $2,784,000 | $3,383,200 |
| Horse Training | $120,050 | $194,500 | $268,500 |
| Veterinary Services | $50,110 | $71,600 | $93,000 |
| Horse Riding | $139,350 | $194,600 | $249,850 |
| TOTAL SALES | |||
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Daily Care | $0.70 | $0.80 | $0.90 |
| Horse Training | $0.40 | $0.45 | $0.50 |
| Veterinary Services | $0.30 | $0.35 | $0.40 |
| Horse Riding | $3.00 | $3.50 | $4.00 |
| Direct Cost of Sales | |||
| Daily Care | $989,300 | $1,839,000 | $2,679,700 |
| Horse Training | $66,600 | $119,900 | $173,200 |
| Veterinary Services | $17,900 | $35,000 | $52,100 |
| Horse Riding | $19,400 | $67,600 | $115,800 |
| Subtotal Direct Cost of Sales | $1,294,100 | $1,699,400 | $2,104,700 |
6.4 Sales Monthly
6.5 Sales Yearly
Personnel plan
After knowing how to start a horse breeding business, the next step is to decide your staff and make a personnel plan.
7.1 Horse Boarding Facility Staff
Chris Equestrian will be the manager himself and will hire the following people initially.
- 2 Accountants to maintain financial records.
- 2 Sales and Marketing Executives for dealing with corporate businesses, horse dealers etc.
- 5 Workers for performing various tasks such as washing, feeding, and grooming the horses
- 7 Workers to maintain the facility and for doing its routine cleaning
- 2 Drivers for transportation
- 2 Vets for medication
- 2 Lawn-mowers for maintaining the ground and pasture
- 5 Expert horse trainers
- 3 Equestrians to teach beginners
- 2 Salesperson to operate products store
7.2 Average Salary of Employees
The following table shows the forecasted data about employees and their salaries for next three years.
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Accountants | $85,000 | $95,000 | $105,000 |
| Sales Executives | $45,000 | $50,000 | $55,000 |
| Workers | $550,000 | $650,000 | $750,000 |
| Horse Trainers | $410,000 | $440,000 | $480,000 |
| Drivers | $152,000 | $159,000 | $166,000 |
| Lawn-Mowers | $145,000 | $152,000 | $159,000 |
| Vets | $50,000 | $55,000 | $60,000 |
| Equestrians | $187,000 | $194,000 | $201,000 |
| Salesperson | $42,000 | $45,000 | $48,000 |
| Total Salaries | $562,000 | $599,000 | $646,000 |
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Financial Plan
In your horse breeding business plan, you must develop your financial plan very wisely, as it will form the basis if you want to expand your business. You should hire professionals for estimating that you can balance horse boarding business profit and your investments. The professional business plan writers can give you many profitable horse business ideas and can guide you on how to earn more and more from your business.
However, we are providing you the sample business plan of Chris Equestrian free of cost if you are not willing to spend money on hiring professionals.
8.1 Important Assumptions
The company’s financial projections are forecasted on the basis of following assumptions. These assumptions are quite conservative and are also expected to show deviation but to a limited level such that the company’s major financial strategy will not be affected.
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10.00% | 11.00% | 12.00% |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
| Tax Rate | 26.42% | 27.76% | 28.12% |
| Other | 0 | 0 | 0 |
8.2 Brake-even Analysis
The following graph shows the company’s Brake-even Analysis
| Brake-Even Analysis | |
| Monthly Units Break-even | 5530 |
| Monthly Revenue Break-even | $159,740 |
| Assumptions: | |
| Average Per-Unit Revenue | $260.87 |
| Average Per-Unit Variable Cost | $0.89 |
| Estimated Monthly Fixed Cost | $196,410 |
8.3 Projected Profit and Loss
The following charts show the company’s expected Profit and Loss situation on the monthly and yearly basis.
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
The following table shows detailed information about profit and loss, and total cost of sales.
8.4 Projected Cash Flow
The following column diagram shows the projected cash flow.
The following table shows detailed data about pro forma cash flow, subtotal cash from operations, subtotal cash received, sub-total spent on operations, subtotal cash spent.
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $40,124 | $45,046 | $50,068 |
| Cash from Receivables | $7,023 | $8,610 | $9,297 |
| SUBTOTAL CASH FROM OPERATIONS | $47,143 | $53,651 | $59,359 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $47,143 | $53,651 | $55,359 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $21,647 | $24,204 | $26,951 |
| Bill Payments | $13,539 | $15,385 | $170,631 |
| SUBTOTAL SPENT ON OPERATIONS | $35,296 | $39,549 | $43,582 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $35,296 | $35,489 | $43,882 |
| Net Cash Flow | $11,551 | $13,167 | $15,683 |
| Cash Balance | $21,823 | $22,381 | $28,239 |
8.5 Projected Balance Sheet
The following projected balance sheet shows data about total current assets, total long-term assets, total assets, subtotal current liabilities, total liabilities, total capital, total liabilities and capital.
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $184,666 | $218,525 | $252,384 |
| Accounts Receivable | $12,613 | $14,493 | $16,373 |
| Inventory | $2,980 | $3,450 | $3,920 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $201,259 | $237,468 | $273,677 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $12,420 | $14,490 | $16,560 |
| TOTAL LONG-TERM ASSETS | $980 | $610 | $240 |
| TOTAL ASSETS | $198,839 | $232,978 | $267,117 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $9,482 | $10,792 | $12,102 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $9,482 | $10,792 | $12,102 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $9,482 | $10,792 | $12,102 |
| Paid-in Capital | $30,000 | $30,000 | $30,000 |
| Retained Earnings | $48,651 | $72,636 | $96,621 |
| Earnings | $100,709 | $119,555 | $138,401 |
| TOTAL CAPITAL | $189,360 | $222,190 | $255,020 |
| TOTAL LIABILITIES AND CAPITAL | $198,839 | $232,978 | $267,117 |
| Net Worth | $182,060 | $226,240 | $270,420 |
8.6 Business Ratios
The following table shows data about business ratios, ratio analysis, total assets, net worth.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 4.35% | 30.82% | 63.29% | 4.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 5.61% | 4.71% | 3.81% | 9.70% |
| Inventory | 1.85% | 1.82% | 1.79% | 9.80% |
| Other Current Assets | 1.75% | 2.02% | 2.29% | 27.40% |
| Total Current Assets | 138.53% | 150.99% | 163.45% | 54.60% |
| Long-term Assets | -9.47% | -21.01% | -32.55% | 58.40% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.68% | 3.04% | 2.76% | 27.30% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 25.80% |
| Total Liabilities | 4.68% | 3.04% | 2.76% | 54.10% |
| NET WORTH | 99.32% | 101.04% | 102.76% | 44.90% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.18% | 93.85% | 93.52% | 0.00% |
| Selling, General & Administrative Expenses | 74.29% | 71.83% | 69.37% | 65.20% |
| Advertising Expenses | 2.06% | 1.11% | 0.28% | 1.40% |
| Profit Before Interest and Taxes | 26.47% | 29.30% | 32.13% | 2.86% |
| Main Ratios | ||||
| Current | 25.86 | 29.39 | 32.92 | 1.63 |
| Quick | 25.4 | 28.88 | 32.36 | 0.84 |
| Total Debt to Total Assets | 2.68% | 1.04% | 0.76% | 67.10% |
| Pre-tax Return on Net Worth | 66.83% | 71.26% | 75.69% | 4.40% |
| Pre-tax Return on Assets | 64.88% | 69.75% | 74.62% | 9.00% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 19.20% | 21.16% | 23.12% | N.A. |
| Return on Equity | 47.79% | 50.53% | 53.27% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 4.56 | 4.56 | 4.56 | N.A. |
| Collection Days | 92 | 99 | 106 | N.A. |
| Inventory Turnover | 19.7 | 22.55 | 25.4 | N.A. |
| Accounts Payable Turnover | 14.17 | 14.67 | 15.17 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 1.84 | 1.55 | 1.26 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | 0 | -0.02 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $120,943 | $140,664 | $160,385 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.45 | 0.48 | 0.51 | N.A. |
| Current Debt/Total Assets | 4% | 3% | 2% | N.A. |
| Acid Test | 23.66 | 27.01 | 30.36 | N.A. |
| Sales/Net Worth | 1.68 | 1.29 | 0.9 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
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