Horseback riding and horse breeding is a highly popular activity in countries like the U.S. There are around 9 million horses registered for sport and recreation purposes. Not everybody who owns a horse has their own stables; therefore, they need a proper place to keep their horses as well as having the right people taking care of them. This is a business plan that contains all the information required to correctly run a successful horse ranch business.
Horse Ranch Business Plan
A Horse Ranch is a business created to breed and train equines for competitions or for leisure activities. There must be a team of well-experienced professionals to complete this task successfully, as well as having the proper facilities for such purposes. In this section of the business plan you will find the how the horse ranch business works and its main components.
For the horse ranch business, one of the most important aspects is to determine potential customers as well as closest competitors. In this section, a market research report will be presented in order to figure out how to position the company above its competition by understanding what they are currently offering and at which price. It is utterly important to inform people on what the business has to offer, as well as the advantages of it in front of the closest competitors.
On the operational side of the plan for this business in particular, there are important aspects to consider such as having a facility with all the necessary elements such as safe fences, barns with stalls, and each stall must be equipped with water troughs, and areas for feeding and bedding. The ranch must have a riding arena or riding trails. The staff is an important part of this process; they need to be well-experienced (trainers) so they can provide the best preparation for the horses. This section of the business plan presents the operational aspect of the business in detail.
The marketing plan for the horse ranch business will focus in advertising for the right audience in order to pick the most cost-effective strategies. In this part of the plan, we will provide all the steps to successfully create awareness and attract customers to your ranch.
There are different targets to be served by a horse ranch. There is English riding, western riding and farms that can exclusively deal with the breeding and training of stallions or horses in training for competitions such as the Olympics. Another way to exploit the business is by offering training to small children so they can become horseback riders. On the other hand, if the facilities are well kept an attractive to the eye, they can be used for other purposes such as wedding receptions and other kinds of social events. In this section of the plan you will find a list of different market segments your business can tackle in order to become a profitable venture.
The promotional strategies to advertise the horse ranch will be described here and they include putting stands in equestrian competitions, ads on printed publications related to the field, social media presence and traditional ads placed in locations of high interest for horse owners. In the end, word of mouth recommendations will be also a crucial aspect of your business success. Therefore, customer service becomes a promotional strategy by itself.
With over nine million registered horses in the U.S. alone, horse ranch businesses have a lot of market yet to be served. With the correct planning and management, this kind of business can become very profitable endeavors. This chapter presents the financial plan for the horse ranch business including revenue and expenses projections for the next three to five years along with capital requirements to set up the business or expand it.
This section of the business plan outlines the primary sources of income for the business. This kind of business provides a steady income through monthly fees charged for keeping the horses, and for training them. It is very important to create a contract in which the clients will sign up for the services they want their horses to enjoy. Extra services can also be offered and they will, certainly, generate more income. On the other hand, secondary sources such as leasing the place to third parties for events or teaching horseback riding lessons to people can also become important sources of income.
In terms of expenses, maintenance and workers’ wages are one of the biggest ones. Trainers who have years of experience in the field demand a significant fee for sharing their knowledge. Equipment is also another source of disbursements, therefore it becomes important to keep an eye in these expenses in order to remain profitable over time.