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Extreme Veteran
Posts: 306
| I'm starting to look into starting a boarding / training facility. And since you are all quite knowledgeable in the business I thought I'd ask your input. So THANK YOU in advance.
I have found a facility I am interested in starting a business in. It's been vacant for quite sometime but it's in my opinion the perfect set up. I heard from others that the previous owner had passed while the place was still in business. I would need to come up with a business plan and apply for a business loan. This is something I really do not know a whole lot about.
FACILITY:
Main Barn:
24 large box Stalls
60'x200' indoor arena
Tack Room
Feed Room
Wash Stall
Bathroom
Laundry Room
Lunch Area
Large Office
Viewing Lounge
Apartment upstairs (2bedroom, 1 bathroom, kitchen, dining, fireplace, living room)
Additional Barn with 29 stalls
3 car garage
3br Rambler Home
40 Acres
Oval dirt Track
Multiple Pens with shelters
I am a graphic designer so I can do all my own advertisement.
Plans for income:
Boarding
Feed Sales
Horse Training
Open Riding
Lessons
Raindrop treatments
Clinics
Rent Home or Apartment
Your thoughts? Your experiences?
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  That's White "Man" to You
Posts: 5515
 
| Do not go into debt for this venture. If you can do it without borrowing it would probably work, but horse business rarely make enough to service their debt. |
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The Resident Destroyer of Liberal Logic
 
Location: PNW | Whiteboy - 2015-03-05 1:55 PM
Do not go into debt for this venture. If you can do it without borrowing it would probably work, but horse business rarely make enough to service their debt.
Exactly this!!!
And start your prices higher than you think. It's much easier to lower your prices than raise them. |
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The Resident Destroyer of Liberal Logic
Location: PNW | And work with a good attorney and a good CPA. They are worth the $$ when starting up a business |
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 Expert
Posts: 2457
| Whiteboy - 2015-03-05 1:55 PM Do not go into debt for this venture. If you can do it without borrowing it would probably work, but horse business rarely make enough to service their debt.
There is a reason why FSA won't underwrite equine loans very often, if ever. They will loan for enterprises that utilize cattle, sheep, pigs, other livestock ....
If you are dead set on doing this ... You might want to write the loan as a housing loan and explore options on operating loans through a commercial bank to buy feed and improvements. It will still look good to develop a business plan and go in there (the bank) knowing exactly what you want/need. |
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That's White "Man" to You
Posts: 5515
| lindseylou2290 - 2015-03-05 2:19 PM Whiteboy - 2015-03-05 1:55 PM Do not go into debt for this venture. If you can do it without borrowing it would probably work, but horse business rarely make enough to service their debt. There is a reason why FSA won't underwrite equine loans very often, if ever. They will loan for enterprises that utilize cattle, sheep, pigs, other livestock ....
If you are dead set on doing this ... You might want to write the loan as a housing loan and explore options on operating loans through a commercial bank to buy feed and improvements. It will still look good to develop a business plan and go in there (the bank) knowing exactly what you want/need.
The business plan exercise is good for you regardless. But when people come in to see me about borrowing money. The first thing I want to know is if they have ran the numbers on paper so they could see if there actually is money in it. On the financial side of it, start with your ideal projections and then cut your income by half and double your expenses. That will get you pretty close to what most horses business really do. If it still cash flows...then you may really have something! |
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Extreme Veteran
Posts: 306
| I guess not really borrowing money for the business itself. The property is listed at $283,000 I would live there. It's a little steep for my current income. Especially if I plan on quitting my job and running a barn full time. |
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Hungarian Midget Woman
Location: Midwest | Noooooooooooooooooo!
if you have to rely on boarders to make your mortgage payment, don't do it.
Eta: saying this because I've seen so many of my friends get stuck trying to get the non-payers off their property.
Not only that, dealing with boarders is no picnic.
Edited by barrelracr131 2015-03-05 3:05 PM
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That's White "Man" to You
Posts: 5515
| 3Kis**** - 2015-03-05 2:40 PM I guess not really borrowing money for the business itself. The property is listed at $283,000 I would live there. It's a little steep for my current income. Especially if I plan on quitting my job and running a barn full time. Where is this located?
It actually sounds like a pretty good price from my perspective.
Edited by Whiteboy 2015-03-05 3:23 PM
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Extreme Veteran
Posts: 306
| Wisconsin |
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 Not Afraid to Work
Posts: 4717
| 3KissHit - 2015-03-05 3:13 PM
Wisconsin
Where in Wisconsin? Could you host events there? Is there a strong community for horse-related activities? |
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Expert
Posts: 2457
| Whiteboy - 2015-03-05 2:32 PM lindseylou2290 - 2015-03-05 2:19 PM Whiteboy - 2015-03-05 1:55 PM Do not go into debt for this venture. If you can do it without borrowing it would probably work, but horse business rarely make enough to service their debt. There is a reason why FSA won't underwrite equine loans very often, if ever. They will loan for enterprises that utilize cattle, sheep, pigs, other livestock ....
If you are dead set on doing this ... You might want to write the loan as a housing loan and explore options on operating loans through a commercial bank to buy feed and improvements. It will still look good to develop a business plan and go in there (the bank) knowing exactly what you want/need.
Right you are - The financial Projections and Enterprise Budgets are what will help you rationalize the make it or break it point for yourself ... Cash Flows are monthly projections based on Enterprise Budgets that break down the epenses and incomes for different parts of the business. You can get real darn close to determinging your break evens and if they are even rational. |
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Extreme Veteran
Posts: 306
| Centrally located. There is a large horse community in the area. Not many indoors around so it might be a hot spot for winter riding. It could host events. Not especially large ones but clinics, playdays, dog shows, ect. |
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Extreme Veteran
Posts: 306
| Are there any success stories out there? haha.
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 Elite Veteran
Posts: 1119
| Is it a "pretty" enough setting that you could host weddings and events of that nature? |
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Extreme Veteran
Posts: 306
| I don't think so. Its not all that pretty haha! |
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 Bulls Eye
Posts: 6443
Location: Oklahoma | I have managed large boarding facilities in California. You will be married to the property. Forget about having a life. I was up watering arenas at 5am and dragging arenas by 6am so when the barn opened at 7am there were fresh dragged arenas. Feed check at 7:30 as the horses started getting fed at 7. I did checks on the horses every hour. My phone rang off the hook day and night. I lived on the property and my pay was my housing which was a 1 bedroom apartment in the middle of the property. Only other income coming in was from holding horses for the vet/farrier, lunging and turnouts, riding, blanketing and feeding supplements. I have a business plan saved somewhere on my computer. |
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 Can You Hear Me Now?
Location: When you hit the middle of nowhere .. Keep driving | Is there a way of making other income on the side at the site besides equine related? We are targeting sheep but have space in the plans for horses as well. It's a lot easier to get financing if it's for other type of livestock, even if it's only a small number to start. I agree with boarders, I watched a friend of mine chase all over the area after her boarders. I do board (1 currently) but only ever a few at a time and don't depend on it, it's extra. |
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 Googly Goo
Posts: 7053
| Whiteboy - 2015-03-05 3:00 PM 3Kis**** - 2015-03-05 2:40 PM I guess not really borrowing money for the business itself. The property is listed at $283,000 I would live there. It's a little steep for my current income. Especially if I plan on quitting my job and running a barn full time. Where is this located?
It actually sounds like a pretty good price from my perspective.
It does to me also. If you could lease it, it would sound even better.
Does it currently have any earnings or would you be starting from scratch? |
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Extreme Veteran
Posts: 306
| It wouldn't be an extremely large operation. At max 15 boarders I'd say. I'd mainly like to buy, train, sell and take in outside training horses but for extra income take in boarders since I have the space. I could also hold open arenas. People around here aren't picky. In the area that the place is located its about 70 miles from the cities Minneapolis / St Paul. People will board farther away because its cheaper. I was looking for boarding with an indoor a few years ago. The place had a 60x60 unheated indoor arena with rock hard ground. The fences were that white tape electric fencing and most were hanging and broken. They had one stall for sick or injured horses and the barn was a mess. They were booked with people waiting at $350 for outside boarding. They said none of their boarders lived within 30 miles of the facility. |
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