Are you about starting a horse breeding farm? If YES, here is a complete sample horse breeding farm business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a horse breeding farm. We also took it further by analyzing and drafting a sample horse breeding farm marketing plan template backed up by actionable guerrilla marketing ideas for horse breeding farms. So let’s proceed to the business planning section.
Starting a horse breeding business is a hard business that can be quite lucrative once certain factors are in place. This business is not only hard but risky because not only do you require courage, you will also require having enough money that will sustain the business for a long time and also about horses, their genetics and what kind of breed you will want to concentrate on; this is a business that requires intense knowledge, practical experience and expertise.
You also must have great passion for the business that will enable you sustain the business for a long time especially when you might encounter frustrating periods.
It is very essential before starting this business that you seek the services of a reputable consultant who has thorough knowledge and expertise of the business you intend going into so as to offer expert advice on how best you should run your business and strategies that are likely to work for you in helping to not only achieve your intended goals and objectives but to also sustain your business for a long time to come.
The business consultant will not only look at your business concept but will also determine how much financial resources you are going to need to run your business and if it will even be worthwhile to start the business at all.
The other thing you will need is a business plan. A business plan is a document that allows investors know if you are serious about your business and if it will be a profitable venture for them and for you. Below is a sample horse breeding farm business template for you;
A Sample Horse Breeding Farm Business Plan Template
1. Industry Overview
The horse industry has an economic impact of $112.1 billion, with over 9 million horses in the united states of America, and has more than 7 million Americans involved. Out of this 7 million Americans, over 4 million are horse owners, service providers, volunteers, employers and employees, while millions more participate as spectators.
The direct economic impact of the horse industry on the United States is $39 billion annually with the multiplier effect on the economy amounting to $102 billion; and according to the United States of Equestrian Federation, the median income for horse owning households was $60,000.
Out of the over 4 million people involved in the horse industry, with 2 million horse owners, only 238,000 are involved in breeding. The remaining are involved in competing, and other activities. According to facts, 1 out of every 63 American has a direct involvement with horses.
The direct jobs provided by the industry amounts to 460,000, and spending by employees and suppliers in this industry generate an additional job that directly affects 1.4 million jobs. The tax paid by this industry to all levels of government amounts to $1.9 billion.
70% of horse owners live in communities that have a population of at most 50,000 people or less. However, it is worthy to note that every state in the United States of America has horses and that 45 out of the 50 states have at least 20,000 horses each.
This industry produces goods and services of $38.8 billion that has a direct impact amounting to $101.5 billion on the economy of the United States of America. The industry employs over 700,000 people directly with part-time and seasonal employees amounting to over 400,000.
Globally, more than 100,000 Thoroughbreds are produced annually with only a few actually being groomed into maturity. The top 10 breeding countries account for 87% of all the Thoroughbreds foaled every year.
2. Executive Summary
Gallop Horse Breeders, LLC is a leading and standard horse breeding farm that will be located in Dallas – Texas, USA and will be involved in the breeding of quality horses for our customers and the various purposes they intend to use the horses for.
We also apart from our core service, will offer other services as well in order to meet up with the various requirements by our clients whilst also gaining a huge share of the market.
Our location here in Dallas – Texas is very strategic as we are close to various race courses and other horse sports-related activity centers. This will afford us the opportunity to be able to network effectively and raise the much needed awareness for our horse breeding farm especially as we intend to raise some of our horses to participate in these races.
Our vision is to be known and referred to as the top provider of quality bred horses both foals and mature horses here in Dallas – Texas as well as all over the United States of America. To achieve this, we intend to invest in and hire the best professionals and ensure that we have also created the right environment for the horses we intend to breed as well.
We are running a business that is transparent and according to world’s best practices. This means that all our clients will be told all the truth upfront about any horse or foal they are interested in. This means that we will be very careful about the kinds of horses we breed and also how we care for them so as keep our reputation as the best horse breeding farm in the industry.
We know how important having the right publicity is to our kind of business, and so we have made plans towards that by ensuring that we will groom certain horses that will bring the right publicity for our farm. We will also partner with renowned trainers, and horse riding sports personalities as well as famous race courses so as to garner the right publicity for Gallop Horse Breeders, LLC.
We have sourced for and hired the best and competent professional staff, who do not only understand the industry thoroughly but also are committed to our vision and will work hard to ensure that we attain our desired goals and objectives.
Our staff will always undergo trainings that will not only enhance their skills but will enhance their productivity for the farm.
We intend to ensure that our employees are well paid better than similar start-ups such as ours across the entire industry. This we believe will make them put in their best into the farm. We will also ensure that we make the farm conducive enough for all our staff.
Our employees will also be trained in ensuring that all our customers receive excellent customer care, this is so that we can retain a high level of loyal clients that will help refer us to others. Finally, our owners, John and Jack McGuire have grown up in the ranch all their lives and have worked with their father in caring for and breeding horses.
Both have more than 20 years experience in this business. Also, John has over 10 years managerial experience, while Jack has several certifications in equestrian management. The two men have what it takes to ensure that the farm achieves its intents and purposes.
3. Our Products and Services
Gallop Horse Breeders, LLC has been established to breed foals and groom them to maturity in order to fulfill the needs of our various clients here in Dallas – Texas. However, we do not intend to just breed horses, we intend to ensure that we create multiple sources of income in addition to our service.
We will also offer intangible services such as consultancy services and trainings. Our intention here at Gallop Horse Breeders, LLC is to make profits as is legally permissible under the laws of the United States of America. Therefore some of the products and services that we intend offer are;
- Sale of mature horses
- Hiring horses out for racing purposes
- Hiring out horses to professional horse jockey players
- Training personal horses for individuals
- Consultancy and Advisory Services
4. Our Mission and Vision Statement
- Our vision is to be referred to as the top provider of quality bred horses both foals and mature horses all over the United States of America.
- In achieving our vision, our mission is to ensure that we seek out only quality horses that are registered, a purebred with good bloodlines. We intend to also build a solid business structure that will allow us achieve our goals and objectives more easily.
Our Business Structure
Building a business structure is very vital especially if we intend to build a standard horse breeding farm here in Dallas – Texas. Our plans are that we get it right from the beginning by going the extra mile o ensure that we get competent and hardworking professionals in all the available positions in our company.
In employing the right people to work with us in achieving our goals and objectives, we intend to source for and hire only those that are not only ready and available but also ensure that they are committed to helping us reach our intended goals and also have the necessary experience in this industry that will allow us succeed.
Our wide range of products as well as the services we intend to offer will lead us to hiring more than a conventional horse breeding farm would.
All our employees will be suitably paid and allowed to undergo continuous training that will not only see their skills enhanced but also allow them be more productive. Below therefore is the business structure we intend to build at Gallop Horse Breeders, LLC;
- Chief Executive Officer
- Farm Manager
- Horse Trainer
- Veterinary Doctor
- Human Resources and Admin Manager
- Sales and Marketing Team
- Purchasing Manager
- Truck Driver
- Customer Service Executives
- Security Guard
5. Job Roles and Responsibilities
Chief Executive Officer
- In charge of making all the right decisions that will affect the farm
- Reviews already made decisions and removes or modifies ineffective ones
- Meets with worth clients on behalf of the farm
- Identifies prize horses on behalf of the farm
- In charge of all that concerns horses on the farm
- Ensures that the standard of the farm is maintained at all periods
- In charge of grooming the horses and carrying out the necessary training
- Knows which horses to break and which needs more time
- In charge of checking the medical conditions of the foals that are brought to the farm
- Carries out medical check-up from time to time on all the horses at the farm
- Treat sick horses and refer complicated cases to a veterinary clinic
Human Resources and Admin Manager
- In charge of sourcing for the right employees on behalf of the farm
- Drafts and implements policies that would affect the employees and their welfare in the workplace
- Ensures that all administrative functions work well and that paperwork is effectively handled on behalf of the farm
Sales and Marketing Team
- Carries out direct marketing and sales on behalf of the farm
- Drafts marketing strategies and policies in line with the company’s core values
- Researches new markets in order to gain new clients for Gallop Horse Breeders, LLC
- In charge of sourcing for trusted vendors and suppliers on behalf of the farm
- Ensures that the right breed are purchased on behalf of the farm according to company’s policies
- Prepares contract and purchase documents and reviews same on behalf of the farm as at when due
- Prepares all the accounting information and statements on behalf of the farm
- Ensures that all tax documents are correctly prepared and submitted to the tax authorities as at when due
- Ensures that the farm stays true to its re-payment plan so as to be free from debts
- Handles the transportation of foals and horses to and from the farm
- Ensure that the horses arrive at their destination on time
- Carries out light maintenance on the truck as at when due
Customer Service Executives
- In charge of attending to clients physically, online and via phone calls and ensuring that they get the right information at all times
- Is updated about industry trends as well as company policies in order to give customers the right information at all times
- Keeps an accurate customer database on behalf of Gallop Horse Breeders Farm
- Patrols the property and ensures that predators and intruders have not entered the farm
- Checks the perimeter of the farm and determine what security measures will suit the farm
- Carries out any other duty as might be determined by the farm manager
- Ensure that the premises is kept clean at all times and that cleaning supplies are always in stock
- Ensures that the horses stalls are cleaned as at when due with the right supplies
- Carry out any other duties as might be determined by the farm manager
6. SWOT Analysis
In determining if we are well suited to start and run this business, we intend to hire reputable business consultants to help look through our business concept and determine if it would be worthwhile for us to start this business, run and also compete favorably against other competitors here in Dallas – Texas as well as round the United States of America.
Due to this, the business consultant took a strict look at our business and took stock at our strengths, weaknesses, opportunities and threats that we were likely to be exposed to here in Dallas – Texas as well as round the United States of America. Below is a SWOT analysis that was conducted on behalf of Gallop Horse Breeders, LLC;
There are several strengths that are available to us and they are the fact that we are careful about the sort of horses we are breeding here at Gallop Horse Breeders, LLC. Also, we sourced for and hired only competent and professional employees who understand the business and are willing to work to ensure that we attain our goals and objectives.
We are also strategically located and are easily accessible to all our customers. Finally, our owners, Jack and John McGuire have the necessary experience to ensure that we attain our goals and objectives.
There are several weaknesses that are likely to crop up when we start or run this business. Some of our weaknesses are that we are not starting off with a huge capital as we would have liked, this has therefore affected certain aspects of our business, such as marketing and not getting the amount of employees that would run all the various services that we intend to offer.
There are several opportunities that exist for us in this industry as there are more activities that require the use of horses, thereby ensuring that there will always be demand for horses. Also, opportunities are available at sporting events, fairs and sporting activities to allow us network with potential clients.
There are certain threats that we expect to be exposed to while running our horse breeding farm here in Dallas – Texas. First, the fact that we are located here in Texas means that we would be facing a whole lot of competition from already established horse breeding farms as well as start-ups.
Also, our business is likely to be affected by a downturn of the economy, which will cause customers to spend less. We however have certain strategies in place to combat whatever threats we are likely to face.
7. MARKET ANALYSIS
- Market Trends
Horses are used for a whole lot of activities and according to a study, these horses are used for a number of activities such as racing, showing, competition, breeding, sport, work, recreation and a whole lots of other activities. These other activities can be referred to as farm and ranch work, polo, carriage horses, police work, and certain informal competitions.
This therefore shows that the industry is highly diverse as it combines rural activities of breeding, training, riding and maintaining of these horses to the urban activities of horse shows, racetracks, public sales as well as other such activities.
Even though there is a huge misconception about horses and the industry is mainly for wealthy people, several studies have dispelled have dispelled this fact as statistics show that 34% of those who owned horses have a household income that is less than $50,000, 46% horse owners have a household income of between $25,000 to $75,000, while only 28% have an annual income of over $100,000.
The trend as regards horses is that it is best for them to be outdoors; this is why starting a horse breeding business is not only hard and capital intensive but also risky as well. Horses cannot be kept in stalls always, and so need to be out for training and for other purposes as well.
8. Our Target Market
There is a wide range of customers available to us here at Gallop Horse Breeders, LLC. Our location here in Dallas – Texas, is very strategic and will therefore ensure that our target market will be easily reached.
We have conducted a thorough market research that will enable us have an idea of what we should expect from our target market so as to allow us draft the right strategies. From our research, it is evident that we are in business to cater to the following people;
- Race courses
- Horse sports men and women
- Other horse breeding farms
Our competitive advantage
Our intention of starting a business is to ensure that we produce and breed quality horses for use by our different customers for various purposes and be the preferred horse breeding farms for all our customers here in Dallas – Texas and all over the United States of America.
We intend to offer various services that will enable us gain a huge share of the target market at the expense of our competitors. Another competitive advantage is that our facility is of a high standard that will ensure that the qualities of our services are high.
We intend to employ competent and professional employees that have vast experience and are also attuned to our policies to our management team and also ensure that our policies are well implemented. We also intend to source for and employ only the best employees that are ready and committed to ensuring that we achieve our intended goals and objectives. All our employees have an excellent customer service culture.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Gallop Horse Breeders, LLC has been established with the aim of maximizing profit in the equestrienne and horse industry here in Dallas – Texas with the intention of providing the intended products and services to our wide range of customers. Gallop Horse Breeders, LLC will therefore generate income via the following products and services;
- Sale of mature horses
- Hiring horses out for racing purposes
- Hiring out horses to professional horse jockey players
- Training personal horses for individuals
- Consultancy and Advisory Services
10. Sales Forecast
One certain fact is that there will always be use for horses either for sports, recreation or some other purposes, which means there will always be a demand.
Our location in Dallas – Texas means we are strategically positioned in order to be able to take on the available market locally as well as nationally all over the United States o America. Our strategic positioning also means that we will generate enough revenue before the end of our loan repayment year.
Our act comes from the critical evaluation that we have conducted on the horse breeding market here in Dallas as well as all over the United States of America. Our analysis has led us to come up with a sales forecast after analyzing our chances in the industry.
Our analysis was based on certain facts and assumptions that were gathered from similar start-ups such as ours and located here in Dallas – Texas. Below therefore is the sales projection for Gallop Horse Breeders, LLC based on certain assumptions and facts;
- First Fiscal Year-: $250,000
- Second Fiscal Year-: $350,000
- Third Fiscal Year-: $700,000
N.B: The above low sales projections come from the fact that we won’t have bred horses to a standard where they will be sold but that our revenue would come from other sources of income that we would have created.
Also, the sales projections are based on the several assumptions such as there won’t be any major economic downturn and that there would not be an arrival of any major competitor within our location during the period of these sales projections.
It should be noted that should there be any changes in the above factors, it would affect the sales projections, and might lead to an increase or decrease in figures.
- Marketing Strategy and Sales Strategy
There are several factors that are important when it comes to marketing a horse breeding farm. Even though marketing is very important for every business, it is more important for a horse breeding farm business because lack of marketing the business will lead to people not being aware of the business and invariably loss to the business.
However, in order to have the best strategies or the business, it is best to conduct a thorough market survey that will allow one know what the target market requires and how best to penetrate the market and gain a huge share of customers as well as favorably compete against other competitors in the same location.
In order to perform a credible market survey, information and data has to be utilized from not only similar start-ups but also already established horse breeding arms in and around the locality.
For this purpose, we are seeking the services of a reputable marketing consultant who has a thorough understanding of the market to help us develop marketing strategies that will help our business gain a large share of the available market here in Dallas – Texas and throughout the United States of America.
We also have empowered our marketing team to collaborate with the marketing consultant and ensure that the strategies drafted are in line with our core values and principles as a business.
We understand the huge role technology has come to play in today’s world especially for businesses such as ours. We would make massive use of the internet to promote and raise awareness about our horse breeding farm. We will promote certain promising foals and bloodlines so as to stimulate the interest of existing and potential customers in our horse breeding farm.
Finally, below are some of the strategies we would adopt in order to market our products and services at Gallop Horse Breeders, LLC;
- Throw a grand opening party when launching our business in order to stimulate interest and raise awareness for Gallop Horse Breeders, LLC
- Introduce our horse breeding farm formally by sending letters and brochures about our farm to famous racecourses, horse sports men and women and also other stakeholders in the industry
- Attend fairs, auctions and events in order to mingle with other horse owners while also marketing our horse breeding farm
- Advertise Gallop Horse Breeders, LLC in local based newspapers, and on local radio and television stations
- Engage in direct marketing and sales
- Ensure that our horse breeding farm in listed on offline and online directories
11. Publicity and Advertising Strategy
Having the right publicity is very vital for our business because as a horse breeding business, we need to be visible at all times if we intend to not only generate revenue that would boost our bottom line but also be able to favorably compete against other competitors whilst promoting Gallop Horse Breeders, LLC.
In order to ensure that we draft the right publicity strategies, we intend to hire the services of a brand consultant that understands the horse market and is experienced enough in promoting brands of our kind to our target market.
We intend to build on several publicity strategies that will not only promote our brand beyond the borders of Dallas – Teas but also positively communicate Gallop Horse Breeders, LLC round the whole United States of America. Some of the platforms we intend adopting to effectively promote Gallop Horse Breeders, LLC are;
- Effectively use our social media platforms to actively raise awareness and stimulate interest about our farm. We will use platforms such as Facebook, LinkedIn, Twitter, Instagram and other popular platforms to engage our audience
- Participate in and sponsor certain social events, sporting activities and fairs here in Dallas – Texas and nearby cities as well
- Install bill boards in strategic locations all around Dallas – Texas
- Distribute handbills and fliers about our farm in target areas
- Place adverts in local newspapers, as well as on radio and television stations
- Ensure that our truck is well emblazoned with our logo and that our staff wear customized tee-shirts especially during certain functions and events
12. Our Pricing Strategy
In setting a price for our horses, it would depend on a whole lot of factors such as the quality of the breed, the bloodline and what purpose the horse will be used for. We are aware that our prices will also vary depending on if the customer intends to buy or hire our horses. We would create a strategy that would allow for a blanket pricing depending on what package our clients are looking for.
However, due to the fact that we are just starting out in this business and in order to attract more customers to our business, we intend to for the first few months when our horses are mature give out discounts and other incentives to our various customers.
Because we would be offering other services and products during this period, we would like to state that even though we would run on a low profit margin during the few months that we would be offering this discount, but we would not run at a loss at any time.
- Payment Options
Due to the fact that we would be offering several services here at Gallop Horse Breeders, LLC; we intend to ensure that we give our various customers the options of having different payment policies that will suit them. The payment options that we will therefore make available to all our clients include;
- Cash payment
- Payment via check
- Payment via bank draft
- Payment via credit card
- Payment via online payment portal
In view of the above, our payment options were chosen after careful deliberations and will work conveniently for us and our customers without any hitches.
13. Startup Expenditure (Budget)
Starting up and running a standard horse breeding farm business can be very capital intensive due to the several things that the bulk of the capital will be going into spending. For a start, one would need to spend most of the capital on purchasing foals, paying salaries as well as utility bills.
Also, much of the capital will go into building certain facilities, purchasing a land (if the entrepreneur doesn’t have one) as well purchasing a truck that will be used. The key areas where we intend to spend the bulk of our start-up capital on are;
- Total fee for registering Gallop Horse Breeders in the United State of America – $750
- Obtaining certifications, licenses and zonal permits as well as accounting software – $1,250
- Cost of hiring a business consultant here in Dallas – Texas – $3,000
- Insurance coverage (general liability, property insurance, workers’ compensation) – $5,000
- Cost of building several facilities (stalls, barns, paddocks, offices) for use at the farm – $30,000
- Marketing promotion expenses (general promotion expenses and grand opening promotion expenses) – $30,000
- Operational cost for the first three months (employees’ salaries, payment of utility bills) – $100,000
- Start-up expenses and purchases and medical expenses – $20,000
- Other start-up expenses (stationeries, phones, computers, business cards, signage, tools and equipment) – $5,000
- Cost of launching a website – $1,000
- Cost of throwing a grand opening party – $5,000
- Miscellaneous – $9,000
From the above breakdown, we would need the total amount of $200,000 to be able to run a standard horse breeding farm here in Dallas – Texas.
It should however be noted that the bulk of the start-up capital will be used to build several facilities on our land, pay employees and utility bills for a certain period of time and also purchase the necessary tools and equipment that will make sure we are able attain our desired goals and objectives.
Generating Funding / Startup Capital for Gallops Horse Breeders Business
Gallop Horse Breeders, LLC is owned and operated by two brothers, Jack and John McGuire. The land on which they intend to use for this business has been in the family for decades and due to this, they do not intend to bring in any eternal investors to partner with them on starting up their horse breeding farm.
This decision has limited the sources where they intend to generate capital from. Therefore, the major areas where we intend to generate our start-up capital from are;
- Generate part of our start-up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from commercial bank
N.B: From the above three sources, we were able to generate the sum of $30,000 from our joint personal savings. We got the sum of $20,000 from our family members and friends.
In order to get the full amount necessary for a successful start-up, we approached our commercial bank for the sum of $150,000 to be repaid at an interest of 4% in 7 years. All the approving documents have been signed by our bank and we have been told that the money would be credited to our account by the end of the week.
14. Sustainability and Expansion Strategy
Because we are in business to succeed, we have deployed strategies in place that will ensure that our plans are geared towards ensuring that the business remains for a long time and grows at a planned pace. In order to ensure that we suitably sustain our business, we intend to hire competent employees, ensure that we offer excellent services to our various customers and also ensuring that we have a solid reinvestment plan in our business.
Building a solid business structure is very important to us here at Gallop Horse Breeders, LLC. Due to this, we intend to ensure that we source for and hire competent employees that do not only have the necessary knowledge and expertise but are also attuned to our core principles as a business and are committed to ensuring that we attain our desired goals and objectives.
All our employees are also well trained in not handling the horses but also ensuring that they positively project our business and communicate our values at all times. We also intend to ensure that our employees work in a conducive environment that is easily accessible.
Offering excellent services is a must for us as a business as we take great care in selecting the breeds we mate and then groom for recreation or sports purposes. Our purchasing manager as well as our farm manager are very experienced in identifying and knowing how well to ensure that our farm breeds only the best, thereby bringing customers for us from far and near.
Finally, we intend to ensure that 50% of the profit made in the farm is reinvested back into the farm; this is so that the business will be able to pay for itself and not have to continually seek for loans from external sources. We believe that applying these different measures will allow us sustain and also expand our horse breeding business from Teas to all over the United States of America.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting feasibility studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
- Purchase of trucks: Completed