Listed below are why four common horse businesses can fail due to poor financial management, unrealistic cash flow projections and business management discipline. Listed with each type of horse business is how equineGenie can assist in helping achieve success.
Horse Boarding Business (equineGenie Stable)
The primary reason most horse boarding businesses fail is poor financial management. Specifically, the failure to calculate the true cost of horse care versus the price charged for board. Many owners set prices based on local competitors rather than their actual expenses. This leads to operations that lose money on every horse. The business fails to calculate accurate costs for feed, bedding, labor, etc. Their management system doesn’t have cost accounting to track every flake of hay and bag of shavings, etc. to ensure accurate pricing.
equineGenie includes cost accounting and tracks operational expenses to help boarding businesses analyze profitability, set accurate pricing, manage supplier costs and control overhead. equineGenie breaks down costs per horse (daily, monthly and yearly) thus moving management decisions from emotional guesswork to data-driven financial choices. Costs are allocated accurately and expenses are split into distinct categories, accounts and subaccounts by expense and their percentage (%) of the total expense to assist in managing and understanding your business’s true operational and financial health.
equineGenie tracks, manages and reports on direct variable expenses – feed, bedding, preventative care ( weight management, vaccination, deworming, dental and farrier services), horse insurance, labor and any expense directly assigned to a particular horse. If a horse is selected or scheduled, the expense is automatically assigned to the horse (feed, preventative care, health care, breeding, training, etc.). If an expense is for a non-selected horse, the expense can be assigned to a horse using a subaccount (tack, special supplements, etc.).
equineGenie tracks, manages and reports on fixed overhead costs (business insurance, property taxes, loans, mortgages etc.). equineGenie tracks, manages and reports on fixed asset capitalization and depreciation (horses, vehicles, equipment, etc.). equineGenie provides date specified and annual income statements and a balance sheet. If you can’t measure it, you can’t manage it! If your boarding business charges more than your competitors, demonstrate to your customers why your charge is worth it! A well-managed business wins!
Horse Breeding Businesses (equineGenie Breeder)
The primary reason most horse breeding businesses fail is poor financial management and unrealistic cash flow projections. Many enter horse breeding fueled by passion rather than structured business planning, leading to undercapitalization and an inability to sustain the high, long-term costs of horse care before generating revenue. Realizing profit on a foal can take three to four years and then you need to know what price generates a profit. equineGenie knows!!!
equineGenie’s cost accounting, direct variable expense and fixed overhead cost management applies to a horse breeding business the same as it does to a Horse Boarding Business.
equineGenie supports realistic cash flow projections by managing and reporting on the use of cash and cash flow daily, monthly and yearly. equineGenie’s embedded AI (artificial intelligent) algorithms for predictive modeling and resource optimization makes sure you have the supplies and other inventoried items on hand when you need them, but not more then you need - ‘Just In Time’. This conserves your cash, minimizes your ‘cash at rest’ and provides accurate supplies’ used expense. equineGenie reminds you when inventoried breeding supplies or other day-to-day supplies need to be replenished contributing to realistic cash flow projections. Scheduled supply consumption like horse feed, bedding, medication etc., are automatically deducted from inventory based on their scheduled consumption. Supplies or other inventoried items that are used periodically are easily deducted and any reorder reminders are automatically adjusted based on use and available inventory.
Horse Training Business (equineGenie Trainer)
The primary reason most horse training businesses fail is poor financial management and treating the operation as a hobby rather than a business. Trainers excel at working with horses but frequently lack the commercial skills needed to manage high overhead costs, unpredictable revenues, and low profit margins.
equineGenie’s cost accounting, direct variable expense, fixed overhead cost management and cash flow management applies to a horse training business the same as it does to a Horse Boarding or Horse Breeding business. equineGenie Trainer also includes the financial and business management of horse showing, racing and eventing.
equineGenie schedules horse training sessions in chronological or calendar format. Multiple training sessions are easily scheduled. Trainers can be identified by horse training specialty for easy selection. The schedule includes the horse to be trained, the trainer, the location and the date and time of the training. equineGenie tracks, manages and reports on your training facility use and its overhead absorption. With one click, equineGenie transfers the training information to a billing log and generates an invoice line item to invoice the horse’s owner for the training. A completed invoice can be emailed to the horse’s owner directly from equineGenie.
Riding Lesson Business (equineGenie Trainer)
The primary reason most horse riding lesson businesses fail is poor business management, specifically treating the business like a hobby rather than a business entity. Because most enter the business out of a deep passion for horses, they frequently prioritize equestrian sport over sustainable financial planning. This fundamental misstep leads to a cascading chain of operational failures. Business owners often keep rates artificially low to keep riding affordable for local families. They guess at lesson prices instead of tracking the exact daily overhead required to maintain a lesson horse.
equineGenie’s cost accounting, direct variable expense, fixed overhead cost management and cash flow management applies to a riding lesson business the same as it does to a Horse Boarding, Horse Breeding or Horse Training business. equineGenie Trainer also includes the financial and business management of horse showing, racing and eventing.
equineGenie schedules riding lesson sessions in chronological or calendar format. Multiple lessons are easily scheduled. Instructors can be identified by lesson specialty for easy selection. The schedule includes the lesson student, the lesson horse, the riding instructor, the lesson location and the date and time of the lesson. equineGenie tracks, manages and reports on your lesson horse and facility use and their overhead absorption. With one click, equineGenie transfers the lesson information to a billing log and generates an invoice line item to invoice the student for the lesson. A completed invoice can be emailed to the student directly from equineGenie.
All the Above Plus all Business Types (equineGenie Pro)
equineGenie Pro includes everything needed to financially manage any type of horse business including the previous four types of horse businesses. equineGenie Pro is for a horse business that includes everything in equineGenie Stable, equineGenie Breeder and equineGenie Trainer plus much, much more.