I’ve seen and heard about some very thorough and detailed vettings that have taken place on horses before money changes hand on a sale. The savvy purchaser understands that no matter how experienced he is in evaluating horses, the professional opinion of a veterinarian is a good investment of time and money. What the skilled veterinarian easily sees from years of observation and testing can be the piece of information that makes the difference to the purchaser. What horseman can afford the risk of thousands of dollars of investment without a solid evaluation of the animal being purchased?

Isn’t it ironic that a professional horseman who understands the value of a thorough exam of a horse for investment often ignores the value of a thorough vetting of their horse business investment? I’m talking about a surface and x-ray analysis of the income sources for the horse business and the associated expenses. This usually occurs only once a year as the professional hurriedly glances over the income and expenses on the tax return, sighs at the number on the bottom line and scribbles a signature on the form before mailing just in time to beat the filing deadline.

If you vetted your business regularly with your partner, your management team or a knowledgeable outsider, you would be examining the following parts of your business:

1. The net profit of the boarding operation on a per stall basis
2. Review of current boarding, lesson and training fees and comparison with the rest of the market
3. The profit generated from the training performed
4. The average lesson income earned per hour
5. Commissions earned on the sale of horses
6. Net profit earned from sale of horses bred and raised by you
7. Anticipated expenses for the next 18 months for capital expenses: trucks, trailers, tractors, farm equipment, buildings, school horses, breeding stock

Additionally, your vetting will include an inspection and evaluations of

1. Your three year business vision
2. Your customer service and relations program
3. Your sales program
4. Your marketing plan
5. Your personal balance of life between work, rest and play

Your decision to be involved professionally, full or part time, in the horse business is a serious one. It’s as serious as investing $50,000 in a horse. The profitability of your horse business not only affects your financial health, it affects your physical and mental health every day along with the relationship with your family, your customers and your horses.

With calendar year businesses, the numbers are just about ready now for the tax preparer. Isn’t now the time to thoroughly vet your business for fiscal healthiness?

"Think of nothing but business and dispatch that business quickly." -- Aldous Manutius

"Close scrutiny will show that most 'crisis situations' are opportunities to either advance, or stay where you are." -- Dr. Maxwell Maltz

"Drive thy business or it will drive thee." -- Benjamin Franklin

Welcome to the new subscribers from the Blue Seal Love Your Horse Equine Seminar in Hamburg NY. I had the pleasure of talking about making money in the horse business at the seminar this past Saturday. If you live nearby, I will be speaking at other Blue Seal sponsored dealer seminars: 6:30 P.M., Monday, Feb 20, 2006, Thiele, Inc, 7485 Shawnee Road N. Tonawanda,NY (716) 692- 4400. Tuesday, Feb 21, 2006 Genesee Feeds, 3860 West Main Street, Batavia,NY (585) 344-3231 and Wednesday February 22, 2006, Worth W. Smith, Olean, NY Contact Name:  Nate Smith 716-372-6400 Call for registration, details and location on these three meetings.

At the seminar, I learned about non structural carbohydrates and how they affect horse nutrition. Not being much of a chemistry wiz, I finally figured out that a non structural carbohydrate is something like a twinkie. Tastes good, but you shouldn’t eat too many of them.

The crowd in Hamburg was attentive and interested in what I had to say as well as the other speakers. What I really liked about the group was that they laughed at my jokes; horsemen and horsewomen with a finely tuned sense of humor.

Life is short.

Ride hard.

Doug

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.

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