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The Profitable Horseman's Newsletter Helping Horsemen with Solutions, Growth and Change in Business
March 17, 2006

Tired of trying to make money in the horse business the old way? I help professional horsemen find new and better methods to add to the profitability of their businesses.

in this issue
  • Announcing New Boarding Profit Calculator and Teleclass
  • Is There Profit in the Boarding Business?
  • Others have said
  • Back at the Barn
  • More Profit in Less Time
  • Getting to the Point

  • Is There Profit in the Boarding Business?
    close 100 bill

    You have heard it. You may have even said it, but how do you know it?

    You donít really know what your true profit or loss in the horse boarding part of your operation is unless youíve taken the time to put your numbers on paper. Now, I know that finding the extra time to create a worksheet on paper or on your computer is close to impossible, but youíll never really know until you do it.

    Even if math isnít your strong subject, I know you have these skills: addition, subtraction, multiplication and division.

    STEP ONE Gather the following:

    1. Cost of hay per horse per day
    2. Cost of bedding per horse per day
    3. Cost of grain and supplements per horse per day
    4. Cost of direct labor per horse per day (untangle specific labor expense for boarding operations from general labor expense by using a stop watch to time each part of the boarding labor sequence: feed, muck, water, turnout, etc.)
    5. Utility costs associated with boarding: water, electric, natural gas, propane/>

    Add up the daily costs and use your results to calculate costs per month per horse for direct expenses. Subtract your direct monthly expenses per horse from your monthly board rate. This is your Gross Boarding Profit.

    Now, if you still have some money left, go to step two. If you're negative with the bucks already, STOP. Raise your board rates and/or reduce expenses and start over.

    Step Two This step takes some 'figurin' but you can do it.

    From your expense records gather the following expenses:

    1. Accounting and legal
    2. Building maintenance
    3. Equipment maintenance
    4. Insurance
    5. Management
    6. Rent
    7. Real Estate Taxes
    8. Other applicable general operating expenses

    Assign a portion of each of the above general expenses that is attributable to the boarding business per month.

    Subtract the sum of the general expenses apportioned to boarding business from your Gross Boarding Profit.

    Congratulations. Now you really know your profit from the boarding business!

    Keep in mind these items about board:

    1. All boarding clients are price sensitive but not all boarders are price focused. Quality of care and facilities are matched to board rate.
    2. Boarding as a business is primary in creating profitable sales of lessons, training, showing and horses, but often secondary in profitability.
    3. Stalls occupied with boarded horses that generate no other income than monthly board, limit your total profitability - no lessons training, showing, etc.

    If all of the above steps drive you crazy, I've developed an easy to use Excel spreadsheet program - a Boarding Profit Calculator - to help you with the process above. Additionally, I offer one on one training along with a group teleclass program on this process. Would you like to know more? Click here.


    Others have said

    "He who builds a better mousetrap these days runs into material shortages, patent infringement suits, work stoppages, collusive bidding, discount discrimination - and taxes." -- H. E. Martz

    "Arithmetic is being able to count up to twenty without taking off your shoes." -- Mickey Mouse

    "Unquestionably, there is progress. The average American now pays out twice as much in taxes as he formerly got in wages." -- H. L. Mencken


    Back at the Barn
    back at barn

    Spring is just around the corner and the red winged blackbirds and Canada geese have been telling me over and over. It's nice to have the silence of winter broken by their loud mouths.

    I didn't need any more reminders of the season change since the extra mud and shedding horse hairs make things obvious.

    What a difference a few more degrees of temperature and an increased altitude for the sun make for moods in the barn for four legged and two legged creatures.

    Life is short.

    Ride hard.

    Doug


    More Profit in Less Time
    Deewochagall

    I show Professional Horsemen how to use 8 key strategies to build a business that creates more profit in less time. Call me and we can talk about how your business can benefit.

    If you know other horsemen who would enjoy this newsletter, please forward it to them! I am on a quest to tell 1000 people what I do and I need your help.

    The purpose of this publication is to help professional horsemen also be Profitable Horsemen.


    Getting to the Point
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    I write another weekly newsletter about the business of life. Curious? Click here


    Announcing New Boarding Profit Calculator and Teleclass
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    I don't know about you, but I don't have enough time to get everything done in a day. Whenever I can find a shortcut, I take it.

    Time is money and your time is valuable. That's why I developed an easy to use Microsoft Excel Spreadsheet to help professional horseman understand what their true profit is on the horse boarding enterprise of their business.

    Click here to learn more about this new program to make your "figurin" a snap.

    Click on these links for more information

    Past issues of Profitable Horseman newsletter

    My blog. Bet I can make you look! Click here.



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