Horse Boarding Operations - What is Involved?

My Horse University and eXtension’s HorseQuest welcome you to this live Webcast.

Horse Boarding Operations: What is Involved?

Kristen WilsonExtension Horse Specialist

University of Maryland Extension

Meet our presenter:

Kristen WilsonExtension Horse SpecialistUniversity of Maryland Extension

Jennifer ReynoldsUniversity of Maryland

Question facilitator:

(American Horse Council, 2005)

U.S. Horse Industry

• Goods and services valued at $38.8 billion

• 460,000 FTE jobs annually

• 9.2 million horses

• 4.6 million people are involved in the industry (not including spectators)

Facts To Consider

• Requires a considerable amount of knowledge and experience

• May result in a loss of privacy on the farm

• Must be able to deal with a variety of personalities

• Liability issues may be a major concern

• Expect to work 365 days/year

Is There A Need?

1. Current horse population

2. Current boarding operations and spaces occupied

3. Demand in area and the growth potential of the industry

What’s Involved?

• Daily care of horses• Pasture management• Building and facility maintenance• Equipment maintenance• Customer service• Personnel management

• Payroll• Insurance and liability issues• Accounts payable and receivable• Marketing• Inventory control

Are You Prepared?

1. Why do you really want to do this?

2. What are the goals for the business?

3. Define success

Business Plan

A business plan is a document that summarizes the operational and financial objectives of a business and contains the detailed plans and budgets showing how

the objectives are to be realized

Parts of a Business Plan

1. Services Offered

2. Marketing Plan

3. Customer Service

4. Resources Needed

5. Safety Concerns

Parts of a Business Plan

6. Nutrition/Feeding Requirements

7. Health Program

8. Contracts & Agreements

9. Finances

10. Legal and Risk Issues

Part 1: Identify Services Offered

• Types of boarding services:

– Pasture Board

– Stall Board

• Think outside of the box!!

– Extra Benefits

– Additional Services

Extra Benefits / Additional ServicesExtra Benefits• Vet Care• Grooming• Holding fee for farrier or vet• Care of sick/hurt horses• Blanketing• Clipping• Tack cleaning

Additional Services• Riding lessons• Riding facilities• Horse training• Breeding services• Hauling horses• Horse sales• In-house horse shows• Field trips• Birthday parties• Lecture series

Part 2: Marketing Plan

• Location, location, location• Techniques:

– Logo, sign– Business cards– Website– Advertising in local publications– Open houses– Flyers

Part 3: Customer Service• Facility should make

favorable impression on clients

• Remember your clients are the people and the horses

• Be ready to deal with multiple personalities

• Communicate!!• Be available and have

additional staff as needed

Part 4: Identify Resources Needed

• Fencing

• Pasture

• Facilities

• Customer Needs

Fencing

• Type of fencing safe for horses• Should be sturdy, visible and durable• 4 ½ to 5 feet high• Bottom of fence and gaits should be 8 –

12 inches off the ground• No sharp edges, narrow corners or

projections

Types of Fencing to Consider

Pasture

• Stocking Rates• Utilize sacrifice area• Rotational grazing systems• Management considerations:

– Avoid over or under grazing– Soil Test, fertilize and lime as needed– Identify weeds and poisonous plants– Choose plant species wisely

Facilities

• Housing requirements– Run-in shed – 90 to 150 sq ft per

animal– Stall – 12ft x 12ft

• Flooring• Ventilation• Manure Management

– Composting vs. Hauling Away

Customer Needs

• Clean restroom facilities in barn

• Telephone

• Space for tack and equipment

• Area for riding

• Landscaping / Aesthetics

Part 5: Safety Concerns• Inspect and evaluate frequently• Establish barn rules and post them• Recommended practices:

– Safety trainings– Regular maintenance of facilities and

equipment– Install fencing around perimeter of property– Fence hazardous areas– Store chemicals in secure areas

Common Barn Rules1. No smoking.2. No dogs.3. Clean up poop left by your horse.

4. Don’t use others’ property.5. Close all gates and stall doors.6. Respect hours of operation.7. All children must be supervised.8. No speeding in the driveway!9. All riders must sign a release form before riding.10. Wear an ASTM/SEI certified helmet.

(Stable Management Magazine, August 2010)

Part 6: Nutrition Requirements

• Feeding program should be tailored to meet nutritional requirements of each horse

• Management tips:– Establish and maintain feeding schedule– Horses consume 2 to 2.5% of b.w./ per day– At least 50% of diet should be from forages– Provide fresh water

Part 7: Health Program

• Generally responsibility of horse owner• Establish an emergency plan of action• Management tips:

– Require health certificate, negative coggins test and isolate new horses

– Vaccination program– Deworming program– Record keeping

Part 8: Contracts & Agreements

• Have written contracts and agreements

• Boarding agreement should include:– Description of horse– What services are included– When fees and charges must be paid– List who is responsible for each area of horse care– Termination– Risk of loss– Right of lien – Waiver of liability

Part 9: Finances

• Decide on rates of services

• Identify expenses

• Develop a sample budget

• Bookkeeping

Rates of Service

• Dependent on industry and market demands

• Price realistically

• Use caution when bartering or offering “in kind” compensation to employees

General Expenses

• Feed• Hay • Bedding• Labor costs• Pasture management

costs

More Expenses To Consider

• Utilities• Insurance• Advertising• Office Supplies• Taxes• Licenses and fees• Accountant fees• Horse trailer expense

• Payroll taxes and benefits• Workman’s comp• Maintenance and improvements to

equipment and facilities• Vehicle expense • Mortgage / Rent

Budget

• Unique to your operation and location

• Costs differ depending on business location and availability of supplies

• Keep business goals and objectives in mind

• Stick to budget

• Research! Research! Research!

Sample Budgets

• Virginia Tech - http://pubs.ext.vt.edu/446/446-048/446-048.html

• Penn State University – http://agalternatives.aers.psu.edu/Publications/horses.pdf

Bookkeeping

• Record every transaction

• Take time to categorize each transaction

• Track income and expenses

• Re-evaluate the financial situation often

Part 10: Legal & Risk Issues

• Insurance

• Licensing

• Form of Business Entity

• Environmental and Zoning Regulations

Insurance: Things to Consider

• Financial stability of the business• Value of horses• Level of risk• Level of personal involvement• Likelihood of experiencing a covered

loss while insured

Insurance Policies• Commercial liability

• Fire and theft

• Property

• Care, custody and control policy

• Individual horse policies

• Workers’ Comp

MDA –Licensing Policy

• MHIB inspects and licenses stables

• Five or more horses rule

• Fee: $125

• Contact information:

www.marylandhorseindustry.org

(410) 841 - 5861

Business Entity

• Several forms of doing business

• Becoming a corporation ensures:– Separates business from personal

assets

– Only operation’s assets are at risk

– Lower taxation rates on income

Environmental and Zoning Regulations

• County Zoning Ordinances– Restrictions on land use, horse density, horse

facilities including shelter requirements, manure disposal, horse disposal, etc.

– Contact County Planning and Zoning Office

• Soil and Water Conservation Plan

• Nutrient Management Plan

Conclusions• Profits can be low

• Hard work and dedication

• Business mentality

• Re-evaluate what your doing often

• Continually educate yourself

• Success doesn’t happen overnight

• “It’s not necessarily a good living, but it’s a good lifestyle.”

Helpful Resources

Complete Guide for Horse Business

Success (2nd Edition)

by Janet English

Horsekeeping on a Small Acreageby Cherry Hill

Additional Resources

Soil Conservation Districthttp://www.nrcs.usda.gov/wps/portal/nrcs/main/national/home

eXtension Horses –http://www.extension.org/horses

Land Grant Universities

State Horse Industry Board and/or Horse Council

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