4 minute read
Covid-19 Slammed the Barn Door Shut for Cash Flow in Horse Businesses
What Can You Be Doing Right Now to Save Your Business?
By Doug Emerson, The Profitable Horseman
This article, intended for this summer issue, is being written while the world is in the throes of the Covid-19 crisis. I’m optimistic the spread of the virus has since slowed as you’re reading this.
Horse business owners everywhere are overwhelmed, confused and angry with the state of the economy. With most horse businesses shut down for lessons, training, horse showing, horse sales and just about everything else, the only revenue coming in is for horse boarding. And boarding income is in jeopardy as some customers will have difficulty making payments. These past long weeks you know too well it’s difficult to control fear and maintain optimism for the future.
As the business world struggles to recover from so much lost income, it’s clear to me all horse business owners will need to have an attitude shift from business as usual to business for survival. Sadly, some businesses will be closing before the end of the year.
Part of your attitude shift includes instead of always working in your business doing things like giving riding lessons, training horses and selling horses, you’ve got to make time to work on your business. Working on your business means: studying numbers, projecting finances and making and implementing tough decisions.
Granted, the daily news paints a bleak, depressing economic picture. But remember, at some point in the past, you controlled your fear and doubts and made a decision to be running your own horse business. Your self-confidence gave you the courage to compartmentalize fear of failure.
This is the same self-confidence that allows you to start a young horse under saddle, to teach beginning students how to ride and be responsible for the well-being of 24 boarded horses.
There is no shame in closing a marginally profitable or losing business. This applies to all businesses. Consider what has happened to brick and mortar retail stores as a result of online shopping. The convenience of online shopping, killer discounts and free delivery are obstacles the absolutely best of the best retailers cannot overcome. This will be the time some horse business owners decide to cut their losses and go out of business.
This will also be the time some horse business owners study where they are, develop the tactics on how to improve, adjust and move forward.
Thankfully, your horse business model will not be replaced by online businesses.
Horse owners will still need places to board, students will need riding instruction, horses will need training and sale horses will need to be matched up with sellers and buyers. Compared to other businesses, horse businesses are very difficult to scale or franchise.
Each horse business has a personality, which is its own uniqueness, to offer. And fortunately, uniqueness allows differentiation from competitors. While horse businesses can be similar, none are identical largely due to the human element of the owner, employees and customers. Consider a grain, beef or dairy farmer who produces a commodity product for a market price. Commodity products are difficult to distinguish from one another.
You are not a commodity! Each horse business is distinguishable from other horse businesses. Identify and capitalize on your strengths.
As you start analyzing your business, separate each enterprise individually: Boarding, lessons, training, horse sales, horse shows, summer camps, breeding and all other enterprises.
Answer these questions:
• What Do I Do? ° Describe each enterprise and its purpose
• Why Do I Do It? ° Explain what motivates you to offer this service • How Can I Do It Better? ° Elaborate on what will improve the enterprise. • Should I Stop Doing It? ° Discuss honestly, without consideration of profitability, what you strongly like about and strongly dislike about the enterprise. • If I Stop, Do I Need To Replace It? ° Being busy with many things doesn’t mean you’ll have a more successful business. Renewed focus on the other parts of your horse business may make more sense than dabbling in new enterprises. This is hard work. It’s even harder when you do it alone. Get a trusted friend to listen to your answers who can hold back judgment. Answer the five questions for all of your horse enterprises in person or over the phone with your trusted friend.
You absolutely need to hear yourself speak as you gather your thoughts and put them in sentences. Clarity and direction for action will result.
Do it now.
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About the author: Doug Emerson, the Profitable Horseman, consults, writes and speaks about the horse business. He enjoys working with groups of professional horsemen and women in workshops to help them improve their profitability. Find out more at www.ProfitableHorseman.com
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