Table of Content

    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.

    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 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.

    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

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    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:

    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 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.

    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 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

    Horse Boarding Business Plan - Sales Monthly

    6.5 Sales Yearly

    Horse Boarding Business Plan - Sales Yearly

    Any questions? Get in Touch!

    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

    Horse Boarding Business Plan - 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

    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 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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