Is There Profit in the Horse Boarding Business?

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

You don’t really know what your true profit or loss in the horse boarding part of your operation is unless you’ve 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 you’ll never really know until you do it.

Even if math isn’t 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.