Low barrier to entry – high earnings opportunity
Let’s look at some numbers first:
According to industry figures there are 3,100,000 former riders who would like to get back in the saddle up from 2.7m in 2015 so there is great potential. This suggests a renewed interest in the horse riding in GB.
1 in 3 people in Britain have an interest in equestrianism.
There are 1.8m regular riders now which is the highest level for a decade, not forgetting the 3.1m referred to above!
It is estimated there are around 5m ex-rider households illustrating the size of the pool of potential returners that could come back to riding in the future.
Riding for leisure is the key reason for riding horses.
Combined with finding no-where to ride or having lost access to a horse, the issue of access is more visible for ex-riders wanting to return but cannot. Within this statement, the need to access safe riding is uppermost.
The biggest desire to return to riding is in 25 to 34-year-old age group. That said the growth in riders under 16 has also grown by 28%.
Gross profit margins of 70-80%
Advantages for a farm over normal commercial enterprises
Skilled in land and animal management
Availability of buildings
Skilled in maintenance of land, buildings, fencing, tracks
Use of own crops for forage and straw, or easy access to markets
Often based in areas that link bridleways and other riding routes
Able to link with other diversification services such as farm shop, holiday lets etc
Planning – Farm conversion for animal use, which also benefits the community and provides access will be looked upon favourable in many cases
Finance – Depending on the site, equestrian diversification can be a relatively cost effective process, and its scalable for future growth
Access to skills and training – Animal management skills usually exist and the equine and customer skills can be provided and introduced by EBC.
Privacy – This depends on the services offered. DIY livery is the least intrusive, through to full livery plus riding school which has more intensive customer interaction. With right placement of the facility and right level staff, this can be minimised in almost every occasion.
Lack of relevant business skills – Provided by EBC
Lack of market research and marketing skills – Provided by EBC
I have personally overseen the conversion of a dairy into an equestrian centre.
It is successful and its profitable
Wide ranging opportunities can be exploited in this sector and margins are high for well managed facilities. A well thought out business plan and cash flow forecast linked to a sales and marketing plan will deliver profitability in a short time frame.
Equine Business Consultancy has a depth and breadth of experience in all financial, commercial, operational and compliance matters in this sector. We can advise on any single aspect or a whole project. Our services can include a full or part managed service solution from start up, growth through to the mature phase of the business.
The first call is not chargeable so do contact us. We are client focussed and we will always advise on the best solution for your business based on your vision. You are in control.
Over the last seven years, my wife Jo and I have built up a very successful enterprise that we are proud of www.reinandshine.co.uk We made our own mistakes and learnt a lot on the way.
But when we started there was no help anywhere, from anyone in the riding centre market. A few marketing people but no real insider business knowledge specifically for riding establishments. Well now there is. Visit our website www.jamesg62.sg-host.com