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The Profitable Horseman's Newsletter The only weekly electronic newsletter published for Professional Horsemen.
November 22, 2006

If you are working long hours for short profits in your horse business, you owe it to yourself to think about making changes. I help professional horsemen find new and better methods to add to the profitability of their businesses.
Welcome New Subscribers!

in this issue
  • There is Something New Every Day in my Blog About the Horse Business

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  • 3 Things You Need to Know About Borrowing Money
  • Need Help With Your Business Borrowing?
  • Others have said
  • Back at the Barn
  • Build the Horse Business You've Always Wanted
  • Speaking about the Horse Business...

  • 3 Things You Need to Know About Borrowing Money

    You may not know this but, lending money is almost as hard as borrowing it. One of the first things I learned in my job as an agricultural lender was figure out how you can get repaid if the loan doesnít work out. Lenders often assume failure first, then consider the chance of success later. It should be the other way around: consider the reasonable likelihood for success first, then what if it fails as a second thought.

    You see, itís easier to get fired as a lender for making loans than it is for not making loans. High risk loans that default equal high risk for ongoing employment for the loan officer. Sorry to be so blunt about it, but lenders care about themselves first and you second.

    Here are three points all professional horsemen should know and understand about borrowing money.

    1. Be exact with the dollars needed and specific with the intended uses for the borrowed money. I recall many farmers who came in my office and asked me about a loan. Iíd ask, ď How much do you need to finance the equipment?Ē

    ďOh, about $ 50,000 to $ 100,000 dollarsĒ was the answer.

    Can you hear the the TV game show buzzer for wrong answer?

    If youíve looked at a loan application, the form has a short blank for a specific loan request. There is no ďaboutĒ mentioned. Lenders canít deal in loose terms like around, about or somewhere near.

    2. Know your numbers. Much like hearing the word about, lenders become nervous and suspecting when the loan applicant is unsure about the numbers of the business. They want to know specifically how you arrived at your projected income, expenses and net income intended to repay the loan you request. Itís OK to have someone else assemble, prepare and package your business numbers. However, itís not OK if you donít understand the methodology of how they were assembled.

    3. Make it easy. You may think itís sometimes questionable, but lenders are human. And human nature is to do the easy things first. They have plenty to do and reworking your sloppy loan application package is not a welcomed task. Your chances for approval are always improved by coming in with a solid, complete and well-documented loan package. Proofread for grammatical errors, spelling and most important, make sure the request makes sense. Just like a tax return, the numbers have to add up correctly. A math error signals the possibility of other errors in the application. Faulty math in the proposal may lead the lender to suspect flawed business practice. Avoid giving the lender any reason to start thinking about reasons to deny your request.

    If you arenít strong with the finances of your horse business, get some help. By doing so, you demonstrate your strength in good business practice. Business owners wear many hats and some of the hats donít always fit well.

    There is nothing wrong with getting assistance with your loan request to make your job of making it easy for the lender, easier for you, too.

    Need Help With Your Business Borrowing?
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    Call or email me about your business loans. We can put together a plan that makes sense for you.

    Others have said

    "You better live your best and act your best and think your best today, for today is the sure preparation for tomorrow and all the other tomorrows that follow." -- Harriet Martineau

    "One of the serious obstacles to the improvement of our race is indiscriminate charity." -- Andrew Carnegie

    "There are no secrets to success. It is the result of preparation, hard work, and learning from failure." -- Colin Powell

    Back at the Barn

    I've had it with the time consuming nuisance of applying water as the solution for dust control in our indoor riding arena. I use a gravity fed water tank mounted on a trailer to apply 250 gallons of water at a time. I'd rather be working with horses than driving in circles applying water. Another problem with water in the cold parts of the U.S. and most of Canada, is the frozen tundra footing that occurs during "deep freeze" periods.

    I'm looking into using magnesium chloride as a method for dust control and am curious if any readers have experience using it, good or bad, and I'm curious about other ways you solve your dust control problems.

    It's a long holiday weekend here in the U.S. as we celebrate Thanksgiving.

    Whether you are in the U.S. or not, every day is a good day to be thankful for the good people and good horses in your life.

    Build the Horse Business You've Always Wanted
    dee oct 06

    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.


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

    There is Something New Every Day in my Blog About the Horse Business

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    herd of horses

    Click on the herd of horses above. They'll take you right to the blog. What's a blog? Click and find out!

    Click on the links below for more information

    Profitable Horseman Web Page

    Past issues of Profitable Horseman newsletter

    Professional Horsemen's Blog- Don't Look Back!

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