At some point, all professional horsemen realize that they can’t keep every good horse that walks into the barn. Buying and selling horses is part of the business.

Becoming fond of your horses is a terrific benefit of being in the horse business. It is also a financial tie down that can ruin your business. The profitable horseman understands that horses in his or her barn are assets; they aren’t pets.

A horse is either appreciating in value or depreciating in value.

It is either generating income as a lesson horse, brood mare, stallion or is inventory for sale or the horse is an ongoing operating expense. The horse becomes a financial dependent on your business’s welfare roll.

Not only is it an operating expense, it is also an opportunity cost. Think about it, if a horse occupies a stall and generates no income or has little or no potential for future income, it is a thief horse. Unlike a horse thief, a thief horse steals your potential to earn profit from the space and resources it occupies. That stall could be used for:

1. Boarding
2. Horse for training
3. Lesson Horse
4. Brood Mare
5. A speculation horse "bought right"
6. An empty stall for attracting the next opportunity

In economic terms, there is an opportunity cost for every decision you make in your equine business. An opportunity cost is defined as the cost of something in terms of an opportunity foregone.

Said a different way, unlike Yogi Berra’s classic line, “When you come to a fork in the road, take it”, every fork in the road you come upon requires a choice. The road you choose is the path you follow. The road not taken is your opportunity cost since you cannot travel two paths at the same time. Choosing the more profitable path that fits your business vision is the choice to make every time.

This week’s tip is to consider whether or not you have any “thief horses” in your barn and if you do, how to find a new home for them. The horse business is just like any other business in that assets have to produce revenue. If your assets are non- producing, then it’s up to you to make changes.

"Concentration is my motto - first honesty, then industry, then concentration." -- Andrew Carnegie

"Your most precious possession is not your financial assets. Your most precious possession is the people you have working there, and what they carry around in their heads, and their ability to work together." -- Robert Reich

"Let me tell you the secret that has led me to my goal. My strength lies solely in my tenacity." -- Louis Pasteur

Today’s newsletter is a repeat of a previous newsletter. I’m practicing what I preach about spending time working on my business. I ‘m spending a few days near Toronto, Ontario with a group of colleagues in a mastermind group.

See you next week!

I work with Professional Horsemen who are struggling with the business half of the horse business. Just like a top performing horse has a strong foundation, so does a top performing horse business.

If you've had enough with disappointment in your horse business, call or e-mail and we can talk about your business and how I may be able to help you.

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.

Life is short,

Ride hard.

Doug

Need a speaker about the horse business for your horse related organization? Talk to me about talking. Keynotes and workshops available. (716) 434-5371