What makes a business different from a hobby or passion project? Easy: A business is designed to generate profits. Your equestrian business is no different, whether you’re trying to make an extra $500 a month in horse show money with your hustle or whether you’re generating a six-figure income and making waves in the equestrian industry, every business must have a strong and stable financial foundation at its core in order to operate and grow.
If you don’t know how much money your business is making (or losing), how can you plan, budget, and grow? And without a plan, you’ll end up spinning your wheels and accelerating to overwhelm yourself and run into money troubles, which doesn’t leave much room to hang out with your best four-legged friends.
The goal of your business should be to make money, plain and simple. That doesn’t mean you can’t also positively impact your community, improve people’s lives, be creative and love what you do – it just means you need to keep the numbers in mind while you do it. done. all the things that fuel your passion, so your business can stay financially healthy, you can feel successful, and you can be able to scale, increase your profits, or hire help when the time will come.
Developing a financial base in your equestrian business is just as important – if not more important – than building a great brand or having a killer social media strategy. With the right approach, you box create a stable and profitable business in the horse world. Yes, I know “stable” isn’t sexy (unless we’re talking about a beautifully designed stable full of stalls, of course), but it’s important. Trust me.
The horse world is fair beginning to shift the general mindset towards ideas you can work with horses and run a business based on profitability and ease. It’s time to leave behind the stereotype of overworked, perpetually broke equestrian professionals.
A financial foundation shouldn’t be scary or intimidating. At its core, it’s just about setting up your business to receive, manage, analyze, and spend money with the goal of generating more revenue. It might sound boring, but let’s break it down into something more exciting: the better your financial situation, the more money you’ll have for horses, and the more money you’ll have to be able to scale your business and get money. assistance. so you can do even After of this money and having more time to spend on what you love (which I guess is… horseback riding).
Every section of your business directly or indirectly affects the inflow and outflow of money, and having all the data you need to run your business effectively, as well as understanding how manipulate money coming in so you can eventually do more and have longevity in what you do.
In this month’s finance course published in the On Course library, we’ll explain how to build your financial foundation from the ground up. But before you jump in, here are my top three tips to keep in mind when it comes to finances and your equestrian business:
1. Prioritize profit in your pricing.
If you choose to set an inadequate price due to lack of information or lack of self-confidence, you make it even more difficult for your business to grow. Services and products that are priced to generate profit allow a business to reinvest in the business and support it. Also remember that there is a psychology to pricing: price too low compared to your competitors in the market and your customers won’t see any added value, they’ll wonder what’s wrong with your offer that makes it so much cheaper. It’s one thing to be competitive in your pricing, but it’s another to underprice yourself. Do some market research, then assess what you bring to the table, set your goals, assess your expenses and plans and make sure you have an appropriate profit margin, and price accordingly.
2. Track your financials.
Separate your professional and personal finances…and no, not just a little. Completely separate your personal and professional finances. Open a business bank account or at the very least a separate, full-fledged bank account when you start. This makes tracking your financial information much easier as it is not mixed up. I advise you to create a Quickbooks account from the start and link it directly to your business account and all business credit cards so that every transaction is tracked. If you don’t feel ready for Quickbooks and have few expenses and purchases, you can manually track financial data on an Excel or Google spreadsheet.
Whether you start tracking your finances with spreadsheets or with accounting software, make sure you do. Bullying and lack of available time are often the reason most equestrian contractors don’t do their accounting. Take the time to educate yourself on how to complete your bookkeeping until you can outsource it. If you’re really struggling to manage your finances, hire a bookkeeper as soon as you can and before you take the next step in growing your business. You definitely need to prioritize the financial health of your business above just about everything else.
Bonus point: Tax agencies also appreciate separation and data collection.
3. Read, analyze and actually use the financial information you collect.
The report section of your accounting software? It’s not just for show. This data can tell you a lot about your business and can be the catalyst that helps you strategize for your growth plans, marketing, next offer, pricing and more. This will give you insight into where you can cut expenses, if you need to raise your prices, how much you need to earn each month to reach your goals, if you can afford to hire help, and if there are alarm signals. you have to worry about it. Go through your financial reports at the end of each month and take the time to analyze and reflect deeply at the end of each quarter and at the end of each fiscal year. This data can truly make or break your profitability and can – and should – influence every element of your business strategy.
Accounting is the history of the financial life of your business. How do you want your story to unfold?
NOËLLE FLOYD and On Course Equestrian are organizing an intensive 30-day course, which will begin with a two-day live virtual event, Horses and Money: The Workshop. The live event is happening this weekend, October 22-23. Sign up here for $50 off the workshop using code HN50.