The key areas where success is generated:
Lower variable costs % (especially staff) and wise purchasing of feed and bedding
Managing and monitoring fixed costs
Marketing budget is sufficient to provide for customer acquisition and retention
Training of staff
Client experience is positive
Cost and profit analysis
Split your business into units –
– For example, clinics, courses, riding school, livery, riding club, education & training, competitions, shop sales, sponsorship etc.
– Then split these units even further such as:
Full livery, part livery, working livery, DIY, extras (turn outs, fetch ins, skipping out, full livery daily services, extra feed, extra bedding). Riding school can be split into riding lessons, education lessons, camps etc
Competitions can be split into dressage, show jumping, cross country
Education & training by course type
The more you can dice and segment your businesses the more you can allocate costs and forecast profits your cash flow more accurately.
Furthermore, you can write accurate budgets for each business unit which added together produces a more detailed and accurate P&L and cash flow for the business, which will become more accurate every year. This gives you credibility in respect of fund raising and confidence in the future. You can allocate budget responsibility for others in your organisation relating to a whole business unit, or just a single cost line. By creating a more granular analysis you can focus on key costs and business developments to maximise control and monetisation of your facility.
Equine Business Consultancy has a library of blogs and information available online.
Contact us if you want improve your financial results and operational performance.