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My Horse University and eXtension’s HorseQuest
                 welcome you to this live Webcast.


Horse Boarding Operations:
    What is Involved?
          Kristen Wilson
        Extension Horse Specialist
     University of Maryland Extension
Meet our presenter:
                 Kristen Wilson
                 Extension Horse Specialist
                 University of Maryland Extension



Question facilitator:   Jennifer Reynolds
                        University of Maryland
U.S. Horse Industry
• Goods and services valued at $38.8 billion

• 460,000 FTE jobs annually

• 9.2 million horses

• 4.6 million people are involved in the
  industry (not including spectators)

              (American Horse Council, 2005)
Facts To Consider
• Requires a considerable amount of
  knowledge and experience

• May result in a loss of privacy on the farm

• Must be able to deal with a variety of
  personalities

• Liability issues may be a major concern

• Expect to work 365 days/year
Is There A Need?
1. Current horse population

2. Current boarding operations
   and spaces occupied

3. Demand in area and the
   growth potential of the
   industry
What’s Involved?
• Daily care of horses    • Payroll
• Pasture management      • Insurance and liability
• Building and facility     issues
  maintenance             • Accounts payable and
• Equipment                 receivable
  maintenance             • Marketing
• Customer service        • Inventory control
• Personnel
  management
Are You Prepared?
1. Why do you really want to do this?

2. What are the goals for the business?

3. Define success
Business Plan

  A business plan is a document that
summarizes the operational and financial
objectives of a business and contains the
detailed plans and budgets showing how
    the objectives are to be realized
Parts of a Business Plan
1. Services Offered

2. Marketing Plan

3. Customer Service

4. Resources Needed

5. Safety Concerns
Parts of a Business Plan
6. Nutrition/Feeding Requirements

7. Health Program

8. Contracts & Agreements

9. Finances

10. Legal and Risk Issues
Part 1: Identify Services Offered
• Types of boarding services:
  – Pasture Board
  – Stall Board

• Think outside of the box!!
  – Extra Benefits
  – Additional Services
Extra Benefits / Additional Services
Extra Benefits                       Additional Services
•   Vet Care                         •   Riding lessons
•   Grooming                         •   Riding facilities
•   Holding fee for farrier or vet   •   Horse training
•   Care of sick/hurt horses         •   Breeding services
•   Blanketing                       •   Hauling horses
•   Clipping                         •   Horse sales
•   Tack cleaning                    •   In-house horse shows
                                     •   Field trips
                                     •   Birthday parties
                                     •   Lecture series
Part 2: Marketing Plan
• Location, location, location
• Techniques:
  – Logo, sign
  – Business cards
  – Website
  – Advertising in local publications
  – Open houses
  – Flyers
Part 3: Customer Service
• Facility should make
  favorable impression on
  clients
• Remember your clients are
  the people and the horses
• Be ready to deal with
  multiple personalities
• Communicate!!
• Be available and have
  additional staff as needed
Part 4: Identify Resources Needed


• Fencing

• Pasture

• Facilities

• Customer Needs
Fencing
• Type of fencing safe for horses
• Should be sturdy, visible and durable
• 4 ½ to 5 feet high
• Bottom of fence and gaits should be 8 –
  12 inches off the ground
• No sharp edges, narrow corners or
  projections
Types of
Fencing to
 Consider
Pasture
•   Stocking Rates
•   Utilize sacrifice area
•   Rotational grazing systems
•   Management considerations:
    –   Avoid over or under grazing
    –   Soil Test, fertilize and lime as needed
    –   Identify weeds and poisonous plants
    –   Choose plant species wisely
Facilities

• Housing requirements
  – Run-in shed – 90 to 150 sq ft per
    animal
  – Stall – 12ft x 12ft
• Flooring
• Ventilation
• Manure Management
  – Composting vs. Hauling Away
Customer Needs
•   Clean restroom
    facilities in barn
•   Telephone
•   Space for tack and
    equipment
•   Area for riding
•   Landscaping /
    Aesthetics
Part 5: Safety Concerns
• Inspect and evaluate frequently
• Establish barn rules and post them
• Recommended practices:
  – Safety trainings
  – Regular maintenance of facilities and
    equipment
  – Install fencing around perimeter of property
  – Fence hazardous areas
  – Store chemicals in secure areas
Common Barn Rules
1. No smoking.
2. No dogs.
3. Clean up poop left by your horse.
4. Don’t use others’ property.
5. Close all gates and stall doors.
6. Respect hours of operation.
7. All children must be supervised.
8. No speeding in the driveway!
9. All riders must sign a release form before riding.
10. Wear an ASTM/SEI certified helmet.
              (Stable Management Magazine, August 2010)
Part 6: Nutrition Requirements
•    Feeding program should be tailored to meet
     nutritional requirements of each horse

•    Management tips:
    –   Establish and maintain feeding schedule
    –   Horses consume 2 to 2.5% of b.w./ per day
    –   At least 50% of diet should be from forages
    –   Provide fresh water
Part 7: Health Program
• Generally responsibility of horse owner
• Establish an emergency plan of action
• Management tips:
  – Require health certificate, negative coggins test and
    isolate new horses
  – Vaccination program
  – Deworming program
  – Record keeping
Part 8: Contracts & Agreements
• Have written contracts and agreements

• Boarding agreement should include:
  –   Description of horse
  –   What services are included
  –   When fees and charges must be paid
  –   List who is responsible for each area of horse care
  –   Termination
  –   Risk of loss
  –   Right of lien
  –   Waiver of liability
Part 9: Finances

• Decide on rates of services

• Identify expenses

• Develop a sample budget

• Bookkeeping
Rates of Service
• Dependent on industry and
  market demands

• Price realistically

• Use caution when bartering or
  offering “in kind” compensation
  to employees
General Expenses

•   Feed
•   Hay
•   Bedding
•   Labor costs
•   Pasture management
    costs
More Expenses To Consider
•   Utilities               • Payroll taxes and
•   Insurance                 benefits
•   Advertising             • Workman’s comp
•   Office Supplies         • Maintenance and
•   Taxes                     improvements to
                              equipment and
•   Licenses and fees         facilities
•   Accountant fees         • Vehicle expense
•   Horse trailer expense   • Mortgage / Rent
Budget
• Unique to your operation and location
• Costs differ depending on business
  location and availability of supplies
• Keep business goals and objectives in
  mind
• Stick to budget
• Research! Research! Research!
Sample Budgets
• Virginia Tech -
  http://pubs.ext.vt.edu/446/446-048/446-
  048.html
• Penn State University –
  http://agalternatives.aers.psu.edu/Publicat
  ions/horses.pdf
Bookkeeping
• Record every transaction

• Take time to categorize each transaction

• Track income and expenses

• Re-evaluate the financial situation often
Part 10: Legal & Risk Issues

• Insurance

• Licensing

• Form of Business Entity

• Environmental and Zoning
  Regulations
Insurance: Things to Consider
•   Financial stability of the business
•   Value of horses
•   Level of risk
•   Level of personal involvement
•   Likelihood of experiencing a covered
    loss while insured
Insurance Policies
• Commercial liability

• Fire and theft

• Property

• Care, custody and control
  policy

• Individual horse policies

• Workers’ Comp
MDA –Licensing Policy

• MHIB inspects and licenses stables
• Five or more horses rule
• Fee: $125
• Contact information:
     www.marylandhorseindustry.org
     (410) 841 - 5861
Business Entity
• Several forms of doing business

• Becoming a corporation ensures:
  – Separates business from personal
    assets
  – Only operation’s assets are at risk
  – Lower taxation rates on income
Environmental and Zoning Regulations

• County Zoning Ordinances
  – Restrictions on land use, horse density, horse
    facilities including shelter requirements,
    manure disposal, horse disposal, etc.
  – Contact County Planning and Zoning Office

• Soil and Water Conservation Plan

• Nutrient Management Plan
Conclusions
• Profits can be low
• Hard work and dedication
• Business mentality
• Re-evaluate what your doing often
• Continually educate yourself
• Success doesn’t happen overnight
• “It’s not necessarily a good living, but
  it’s a good lifestyle.”
Helpful Resources
          Complete Guide for Horse Business
                Success (2nd Edition)
                  by Janet English



Horsekeeping on a Small Acreage
         by Cherry Hill
Additional Resources
                  Soil Conservation District
http://www.nrcs.usda.gov/wps/portal/nrcs/main/national/home

                     eXtension Horses –
              http://www.extension.org/horses

                  Land Grant Universities

     State Horse Industry Board and/or Horse Council
Give us your feedback!
• You will receive a survey by email. Please take
  a few minutes to give us your feedback on this
  webcast. It will help us to better serve you!
Upcoming Webcasts
• Managing Live Horse Events
  March 27 | 7PM EDT

• Tractor and Machinery Safety
  April 24 | 7PM EDT

• Pasture Rotation
  May 1 | 7PM EDT
Thank you for attending this live web presentation!




                For more information about
            My Horse University please visit us at:
               www.myhorseuniversity.com




info@myhorseuniversity.com | www.myhorseuniversity.com | 517-353-3123

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Horse Boarding Operations - What is Involved?

  • 1. My Horse University and eXtension’s HorseQuest welcome you to this live Webcast. Horse Boarding Operations: What is Involved? Kristen Wilson Extension Horse Specialist University of Maryland Extension
  • 2. Meet our presenter: Kristen Wilson Extension Horse Specialist University of Maryland Extension Question facilitator: Jennifer Reynolds University of Maryland
  • 3. U.S. Horse Industry • Goods and services valued at $38.8 billion • 460,000 FTE jobs annually • 9.2 million horses • 4.6 million people are involved in the industry (not including spectators) (American Horse Council, 2005)
  • 4. Facts To Consider • Requires a considerable amount of knowledge and experience • May result in a loss of privacy on the farm • Must be able to deal with a variety of personalities • Liability issues may be a major concern • Expect to work 365 days/year
  • 5. Is There A Need? 1. Current horse population 2. Current boarding operations and spaces occupied 3. Demand in area and the growth potential of the industry
  • 6. What’s Involved? • Daily care of horses • Payroll • Pasture management • Insurance and liability • Building and facility issues maintenance • Accounts payable and • Equipment receivable maintenance • Marketing • Customer service • Inventory control • Personnel management
  • 7. Are You Prepared? 1. Why do you really want to do this? 2. What are the goals for the business? 3. Define success
  • 8. Business Plan A business plan is a document that summarizes the operational and financial objectives of a business and contains the detailed plans and budgets showing how the objectives are to be realized
  • 9. Parts of a Business Plan 1. Services Offered 2. Marketing Plan 3. Customer Service 4. Resources Needed 5. Safety Concerns
  • 10. Parts of a Business Plan 6. Nutrition/Feeding Requirements 7. Health Program 8. Contracts & Agreements 9. Finances 10. Legal and Risk Issues
  • 11. Part 1: Identify Services Offered • Types of boarding services: – Pasture Board – Stall Board • Think outside of the box!! – Extra Benefits – Additional Services
  • 12. Extra Benefits / Additional Services Extra Benefits Additional Services • Vet Care • Riding lessons • Grooming • Riding facilities • Holding fee for farrier or vet • Horse training • Care of sick/hurt horses • Breeding services • Blanketing • Hauling horses • Clipping • Horse sales • Tack cleaning • In-house horse shows • Field trips • Birthday parties • Lecture series
  • 13. Part 2: Marketing Plan • Location, location, location • Techniques: – Logo, sign – Business cards – Website – Advertising in local publications – Open houses – Flyers
  • 14. Part 3: Customer Service • Facility should make favorable impression on clients • Remember your clients are the people and the horses • Be ready to deal with multiple personalities • Communicate!! • Be available and have additional staff as needed
  • 15. Part 4: Identify Resources Needed • Fencing • Pasture • Facilities • Customer Needs
  • 16. Fencing • Type of fencing safe for horses • Should be sturdy, visible and durable • 4 ½ to 5 feet high • Bottom of fence and gaits should be 8 – 12 inches off the ground • No sharp edges, narrow corners or projections
  • 18. Pasture • Stocking Rates • Utilize sacrifice area • Rotational grazing systems • Management considerations: – Avoid over or under grazing – Soil Test, fertilize and lime as needed – Identify weeds and poisonous plants – Choose plant species wisely
  • 19. Facilities • Housing requirements – Run-in shed – 90 to 150 sq ft per animal – Stall – 12ft x 12ft • Flooring • Ventilation • Manure Management – Composting vs. Hauling Away
  • 20. Customer Needs • Clean restroom facilities in barn • Telephone • Space for tack and equipment • Area for riding • Landscaping / Aesthetics
  • 21. Part 5: Safety Concerns • Inspect and evaluate frequently • Establish barn rules and post them • Recommended practices: – Safety trainings – Regular maintenance of facilities and equipment – Install fencing around perimeter of property – Fence hazardous areas – Store chemicals in secure areas
  • 22. Common Barn Rules 1. No smoking. 2. No dogs. 3. Clean up poop left by your horse. 4. Don’t use others’ property. 5. Close all gates and stall doors. 6. Respect hours of operation. 7. All children must be supervised. 8. No speeding in the driveway! 9. All riders must sign a release form before riding. 10. Wear an ASTM/SEI certified helmet. (Stable Management Magazine, August 2010)
  • 23. Part 6: Nutrition Requirements • Feeding program should be tailored to meet nutritional requirements of each horse • Management tips: – Establish and maintain feeding schedule – Horses consume 2 to 2.5% of b.w./ per day – At least 50% of diet should be from forages – Provide fresh water
  • 24. Part 7: Health Program • Generally responsibility of horse owner • Establish an emergency plan of action • Management tips: – Require health certificate, negative coggins test and isolate new horses – Vaccination program – Deworming program – Record keeping
  • 25. Part 8: Contracts & Agreements • Have written contracts and agreements • Boarding agreement should include: – Description of horse – What services are included – When fees and charges must be paid – List who is responsible for each area of horse care – Termination – Risk of loss – Right of lien – Waiver of liability
  • 26. Part 9: Finances • Decide on rates of services • Identify expenses • Develop a sample budget • Bookkeeping
  • 27. Rates of Service • Dependent on industry and market demands • Price realistically • Use caution when bartering or offering “in kind” compensation to employees
  • 28. General Expenses • Feed • Hay • Bedding • Labor costs • Pasture management costs
  • 29. More Expenses To Consider • Utilities • Payroll taxes and • Insurance benefits • Advertising • Workman’s comp • Office Supplies • Maintenance and • Taxes improvements to equipment and • Licenses and fees facilities • Accountant fees • Vehicle expense • Horse trailer expense • Mortgage / Rent
  • 30. Budget • Unique to your operation and location • Costs differ depending on business location and availability of supplies • Keep business goals and objectives in mind • Stick to budget • Research! Research! Research!
  • 31. Sample Budgets • Virginia Tech - http://pubs.ext.vt.edu/446/446-048/446- 048.html • Penn State University – http://agalternatives.aers.psu.edu/Publicat ions/horses.pdf
  • 32. Bookkeeping • Record every transaction • Take time to categorize each transaction • Track income and expenses • Re-evaluate the financial situation often
  • 33. Part 10: Legal & Risk Issues • Insurance • Licensing • Form of Business Entity • Environmental and Zoning Regulations
  • 34. Insurance: Things to Consider • Financial stability of the business • Value of horses • Level of risk • Level of personal involvement • Likelihood of experiencing a covered loss while insured
  • 35. Insurance Policies • Commercial liability • Fire and theft • Property • Care, custody and control policy • Individual horse policies • Workers’ Comp
  • 36. MDA –Licensing Policy • MHIB inspects and licenses stables • Five or more horses rule • Fee: $125 • Contact information: www.marylandhorseindustry.org (410) 841 - 5861
  • 37. Business Entity • Several forms of doing business • Becoming a corporation ensures: – Separates business from personal assets – Only operation’s assets are at risk – Lower taxation rates on income
  • 38. Environmental and Zoning Regulations • County Zoning Ordinances – Restrictions on land use, horse density, horse facilities including shelter requirements, manure disposal, horse disposal, etc. – Contact County Planning and Zoning Office • Soil and Water Conservation Plan • Nutrient Management Plan
  • 39. Conclusions • Profits can be low • Hard work and dedication • Business mentality • Re-evaluate what your doing often • Continually educate yourself • Success doesn’t happen overnight • “It’s not necessarily a good living, but it’s a good lifestyle.”
  • 40. Helpful Resources Complete Guide for Horse Business Success (2nd Edition) by Janet English Horsekeeping on a Small Acreage by Cherry Hill
  • 41. Additional Resources Soil Conservation District http://www.nrcs.usda.gov/wps/portal/nrcs/main/national/home eXtension Horses – http://www.extension.org/horses Land Grant Universities State Horse Industry Board and/or Horse Council
  • 42. Give us your feedback! • You will receive a survey by email. Please take a few minutes to give us your feedback on this webcast. It will help us to better serve you!
  • 43. Upcoming Webcasts • Managing Live Horse Events March 27 | 7PM EDT • Tractor and Machinery Safety April 24 | 7PM EDT • Pasture Rotation May 1 | 7PM EDT
  • 44. Thank you for attending this live web presentation! For more information about My Horse University please visit us at: www.myhorseuniversity.com info@myhorseuniversity.com | www.myhorseuniversity.com | 517-353-3123