By Christa Myers
You can make money in horses.
You can make money with horses.
Two very similar statements are quite different.
The latter requires you to invest in an animal that often tries to un-alive when the weather changes. Making money with horses requires you to depend on clients to pay their bills, the clients who very likely blew their board budget at the tack shop this weekend.
Equestrians need to spend time learning how to budget their money, so they can pay their bills on time. Equestrian entrepreneurs need to create businesses that price to profit and maintain their budget. It will likely include open conversations on how to get from A to B but if we talk and listen about the struggles we’re facing, perhaps we can manage to find a solution.
“You need to price for profit”… When I say this, I don’t mean you need to create large profit margins. The label greedy isn’t for business owners who work to make an impact on our industry. You can love working with horses and also be financially stable.
Whether you’re making money in horses or with horses; you need to take your finances seriously in order to create a profitable and stable business.
When it comes to profitability, we must know what we’re spending. Track the expenses you spend on individual horses
As equestrians, we know how important the topline is.
We also know without healthy hooves, we don’t have a horse.
These two lessons learnt in the barn should follow equestrian entrepreneurs into business.
Topline takes on a whole new meaning; the money you’re able to make in horses. The bottom line replaces the hooves, it’s what you’ve managed to keep after handling the money.
Horses aren’t cheap.
There’s no way around that fact.
Even if your business doesn’t directly involve horses, your horse dreams aren’t free.
Expenses can add up quickly, dragging down that hard-earned money when it could be paying bills and yourself.
It’s important to analyze both of these when looking to increase your profit. Increase your sales and your topline rises with it. If you’re not operating sustainably your bottom line will tell you just that. Check these three areas to cut expenses and keep more money for that expected but still surprise, vet bill.
That includes the subscription you promise you’ll use this month.. for the fourth month.
..and not at the tack shop. Inquire about other providers for your expenses and see if you can get a better price.
A budget doesn’t just tell you if you spent over or under in a certain category. It tells you that you need to reallocate your money and create a new plan. Think of it as your coach yelling your next jump after seeing the fear in your eyes.