Small Business Woes

Jennasis

DIS life goes on
Joined
Jun 11, 2000
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Our small business is running into another crisis moment. These tend to crop up from time to time (as it is the nature of this particular business), but it stresses Dh and I out terribly...AND it happens to be coming less than two weeks prior to our honeymoon trip to WDW (and our only vacation in over 3 1/2 years!).

We run a horse farm where we board other peoples horses, give riding lessons, and train horses. We had 15 horses that we were boarding. 2 left for "training" at another farm for what is supposed to be only 2-3 months. I have that feeling in my gut that they may not be returning. Both owners assured me when the horses left that they absolutely would be bringing their horses back after training and even paid for me to "hold" their stalls, on a month by month basis since they are unsure of exactly how long they will be gone for. Until those horses are back home, I simply am unconvinced they will be coming back. One owner is a "grass-is-greener" type who is CONSTANTLY comparing the way I run my barn to the way the other trainer runs her barn (neither way is right or wrong, just waht works for each of us).

Yesterday a THIRD boarder tells me that she is looking for a place to move her horse to that would be cheaper. PS...my barn has the MOST ammenities and is the LEAST expensive barn in 3 counties for full board (this means the horse has it's own stall, gets turned out in our pasture every day, has it's stall cleaned twice daily, and we take care of all it's feet, scheduling the vet and horse shoer etc...) The owner is looking for a situation we call "pasture board" which is , as a rule, cheaper than full board. Pasture board basically means your horse lives in a field...period. No barn, no cleaning, no extras.

Panicking at the notion of losing another boarder, DH and I discussed the possibility of allowing this boarder to work off some of her board, to make it more affordable for her to stay. She seemed interested in the idea when I presented it to her. I am waiting to hear if she accepts it.

Frankly...we do not need ANY help. People working in exchange for their board is not helpful to me since the farm is my ONLY income. I can do the work myself, so it isn't terribly beneficial to me to allow anyone to work off any of their bill. HOWEVER, being paid for HALF of the cost of the stall is still better than being paid zero for an empty stall right?

My OTHER problem, is that if the other boarders get wind of this lady being allowed to work off part of her board, they may all want to do so as well. I simply cannot afford to let everyone do this. I can't really afford to let this lady do it, but I can't afford to lose her income altogether.

If we lose her, and those other two boarders in training don't return, my business will be ruined...crippled...to the point where I may have to either get another job, or sell the farm completely.

This is the cyclical nature of my business. Like any landlord, people come and go often (sometimes at the worst possible time and sometimes without much warning). I could (God willing) get a phone call tomorrow from someone looking to move in, and in the past this has actually happened after someone has moved out. But it is quite nerve racking waiting and wondering...not knowing if your business will survive.

There are other barns in my area that are much more expensive, some twice as much. I know we will have to increase our board prices (probably right after we return from WDW) but I am terrified that this may prompt others to pick up and leave for cheaper digs. But we can't last very long with an unfull barn charging as little as we are. We haven't raised board prices in over 2 1/2 years! Usually barns raise every 2 years or so.

Any sage advice from other business owners? Or at least send some prayers and pixie dust our way...
 
First, Line of credit!

Second, I have found that when I cut fees, I get two reactions, first, something was wrong with my work, even if I simply feel that the fees being cut would be a good gesture under the circumstances due to relationship, things that happen beyond my control, etc. The second reaction i think occurs is weell, if you can cut it this time, why not always.

Cash flow can take you a long way, and keep you alive, even if the real numbers are below the profit margin. However, it does catch up to you. I have decided that, if I am going to be forced to live under a bridge ;) I would rather do so because I was only working for those people who want to pay me, rather than be under the bridge because I was working for everybody at a rate that is below what I need to make a profit, and basically giving away my services.

Sometimes it is best to let customers go, if they will cause damage to your other clients. Of course, your situation is your situation.....and I know nothing about horse farms.
 
CAn you do any sort of advertising? A presentation to a girl Scout troop on horse care, an open house etc.

SOme people may be interested in boarding a horse but not want to look foolish or may be actually overestimating the costs.

Basically it would educating people on it being possible to own a horse without having their own land and how much to budget for.
 
I think I would try to develop some sort of wait list program for the future so you can have a list of names to go to when you lose a boarder.

Is there some sort of promotion you can offer to entice others to your farm? Maybe a free lesson. Can you make arrangements with the person who does the shoes or the local vet for a discount if they board their horses at your farm?

Is it possible to have boarders sign some sort of contract to guarantee they will stay for a certain period of time? I am not sure if this would be kosher in your industry, But you need to know which horses will be there in order to anticipate what you will need for grain and hay for winter.

How about creating a pasture program to go along with your full board program?

Good luck to you. DH runs his own small business, and there are a lot of ups and downs, and fear of the unknown. But he is sure a lot happier than when he was working for "the man." So it's all worth it.

Denae
 

Thanks for the advice and words of wisdom. Dh and I were chatting this morning (after I posted) and the financial picture isn't completely bleak even if those 3 people leave. We should be ok for about 6 months or so (with our savings and checking and the other income we get from our other services). Hopefully we'll get another boarder or two in...that would alleviate a lot of stress.

We actually do quite abit with not only the girl scouts, but also the rec department. We are running a 6 week "intro to horses" course for them starting Oct 9th. It;s for kids ages 8+, and we are now going to run one for adults and also a Mommy and me class for SAHM's and kids ages 3+. We are also now contacting the local colleges about starting an intercollegiate riding team. This is a very big money maker if we can get it off the ground. Luckily my assistant instructor was a college coach in NY before moving here.

We do advertise quite a bit. We are one of the only barns in 50 miles that actively advertises in the paper, yellow pages, and flyers. Every ad offers discounts for new students and boarders if they mention the ad. We get a lot of new riders this way.

Our boarding contract only stipulates that boarders are required to give 30 days notice before they terminate the contract. If this boarder leaves 10/1 (which is what I think she was planning) she still is responsible for paying board from the date she told me she was thinking of leaving (9/20) until 30 days after that. OR she can stay for 30 days and leave.

Unfortunately we cannot offer pasture board as we have a limited amount of pasture. We have 23.25 acres and 21 stalls. Theoretically one needs an acre per horse as a bare minimum (2 would be better). PAsture boarded horses (at HALF the price of full boarding) would take away from our ability to fill stalls with FULL boarders. Does that make sense? AND if I started allowing pasture boarders, my current full boarders are all likely to want to switch over, decreasing my income unaccepably.

We are taking steps to boost our income as much as possible without subjecting our very loyal and wonderful customers who we just adore (they are taking care of the barn while we go to WDW next week!) to a huge price increase. I just needed to get all my thoughts down on "paper"...or print...to get it all out of my head and off my chest. The DIS is a great sounding board!
 

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