Do you want to start horse boarding business?

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 horse 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 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.

2.2 Management

Chris Equestrian will be managed by Chris, yet experienced and licensed workers will be hired for barn help and horse training.

2.3 Customers

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 the Company

The company aims to provide the highest quality service to its customers and become the best horse boarding center in New Jersey.

Horse Boarding Business Plan - 3 Years Profit Forecast

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 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 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.

Horse Boarding Business Plan - Startup Cost

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

The pet industry is one of the few industries which have seen a consistent increase in revenue. 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:

Horse Boarding Business Plan - Marketing Analysis

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 CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
Horse Dealers32%11,43313,34416,55318,74520,54513.43%
Individual Households48%22,33432,34443,66552,54466,43210.00%
Animal Shelters20%12,86714,43315,99917,56519,13115.32%
Total100%46,63460,12176,21788,854106,1089.54%

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.

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, 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.

Horse Boarding Business Plan - Unit Sales

The detailed information about the sales forecast, total unit sales, total sales is given in the following table.

Sales Forecast   
Unit SalesYear 1Year 2Year 3
Daily Care1,887,0302,680,3202,588,240
Horse Training802,370815,430823,540
Veterinary Services539,3207702301,002,310
Horse Riding265,450322,390393,320
TOTAL UNIT SALES3,494,1704,588,3704,807,410
Unit PricesYear 1Year 2Year 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 CostsYear 1Year 2Year 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

Horse Boarding Business Plan - Sales Monthly

6.5 Sales Yearly

Horse Boarding Business Plan - 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 Company 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 1Year 2Year 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

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 professionals 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 1Year 2Year 3
Plan Month123
Current Interest Rate10.00%11.00%12.00%
Long-term Interest Rate10.00%10.00%10.00%
Tax Rate26.42%27.76%28.12%
Other000

8.2 Brake-even Analysis

The following graph shows the company’s Brake-even Analysis

Horse Boarding Business Plan - Brake-even Analysis

 Brake-Even Analysis 
Monthly Units Break-even5530
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

Horse Boarding Business Plan - Profit Monthly

8.3.2 Profit Yearly

Horse Boarding Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Horse Boarding Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Horse Boarding Business Plan - 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.

Horse Boarding Business Plan - 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 ReceivedYear 1Year 2Year 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
ExpendituresYear 1Year 2Year 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   
AssetsYear 1Year 2Year 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 CapitalYear 1Year 2Year 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 1Year 2Year 3INDUSTRY PROFILE
Sales Growth4.35%30.82%63.29%4.00%
Percent of Total Assets
Accounts Receivable5.61%4.71%3.81%9.70%
Inventory1.85%1.82%1.79%9.80%
Other Current Assets1.75%2.02%2.29%27.40%
Total Current Assets138.53%150.99%163.45%54.60%
Long-term Assets-9.47%-21.01%-32.55%58.40%
TOTAL ASSETS100.00%100.00%100.00%100.00%
Current Liabilities4.68%3.04%2.76%27.30%
Long-term Liabilities0.00%0.00%0.00%25.80%
Total Liabilities4.68%3.04%2.76%54.10%
NET WORTH99.32%101.04%102.76%44.90%
Percent of Sales
Sales100.00%100.00%100.00%100.00%
Gross Margin94.18%93.85%93.52%0.00%
Selling, General & Administrative Expenses74.29%71.83%69.37%65.20%
Advertising Expenses2.06%1.11%0.28%1.40%
Profit Before Interest and Taxes26.47%29.30%32.13%2.86%
Main Ratios
Current25.8629.3932.921.63
Quick25.428.8832.360.84
Total Debt to Total Assets2.68%1.04%0.76%67.10%
Pre-tax Return on Net Worth66.83%71.26%75.69%4.40%
Pre-tax Return on Assets64.88%69.75%74.62%9.00%
Additional RatiosYear 1Year 2Year 3
Net Profit Margin19.20%21.16%23.12%N.A.
Return on Equity47.79%50.53%53.27%N.A.
Activity Ratios
Accounts Receivable Turnover4.564.564.56N.A.
Collection Days9299106N.A.
Inventory Turnover19.722.5525.4N.A.
Accounts Payable Turnover14.1714.6715.17N.A.
Payment Days272727N.A.
Total Asset Turnover1.841.551.26N.A.
Debt Ratios
Debt to Net Worth0-0.02-0.04N.A.
Current Liab. to Liab.111N.A.
Liquidity Ratios
Net Working Capital$120,943$140,664$160,385N.A.
Interest Coverage000N.A.
Additional Ratios
Assets to Sales0.450.480.51N.A.
Current Debt/Total Assets4%3%2%N.A.
Acid Test23.6627.0130.36N.A.
Sales/Net Worth1.681.290.9N.A.
Dividend Payout000N.A.