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First time poster with insurance question

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        03-12-2013, 11:52 AM
    Okay thank you for the info. I'm sure the hidden costs are what I'm missing. The math seems to work but all of you guys with experience say the board is a break even game so I believe you. We would have 14 stalls with 10 boarders at 450 per stall, 175 per month per horse for hay,feed etc. is what I've been told it costs by the trainer in the barn. 4500 income and 1750 going to feed and hay for a difference of 2750 for the rest of the business costs. You guys don't laugh at me too much as I said I'm a rookie. The time and work involved taken out of the equation it seems to work.
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        03-12-2013, 06:44 PM
    You're not counting any of your labor costs, debt service on the mortgage, the cost of all the insurance, incl., property insurance, liability insurance and Worker's comp, equipment maintenence, incidental supplies and upkeep, and things like lime, fertilizer and seed for the pastures, diesel for the farm tractor, etc.

    There's probably more, but that's what I can think of off the top of my head.

    Also, if you're putting any of your horses in those stalls, or allowing any of your workers a stall as part of their agreement or discounted board, then you need to adjust your income projection for that.
        03-12-2013, 07:06 PM
    Since you're buying an existing business, I would want to see their ledger. That will tell you how much $$ goes where.
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        03-13-2013, 04:17 PM
    Green Broke
    Also make sure all horses are up to date on vaccinations!
        03-17-2013, 09:34 AM
    Thanks again for the replies. So I'm figuring out from the posts that the "board is a break even game" is including the mortgage, insurance, and Hay feed costs. I'm calculating 2500 per month for mortgage and taxes and 2275 per month to feed 13 horses, 200 lights/water, and 400 per month for insurance. Those bills add up to 5375 per month. I'm figuring ten boarders out of the 14 stalls because of our two horses and the barn helpers horse using 3 is 4500 per month income. The trainer is giving us 100 per month per horse in training and 20% of each lesson. The trainer to be very conservative would add 500 per month income. Figuring all this in it seems to almost support itself not including the maintenance, fuel, repairs, equipment needed etc. which we would cover out of our pocket because we still have our day jobs. There aren't any labor costs because we would do it and the helper is free.The other thing is we have no way to research the owners ledger because they have it as a hobby and not a business, they just like having horses around. Does this sound like a another naive guy trying to buy a horse barn or am I at least in the ballpark?
        03-17-2013, 10:17 AM
    Sounds like you're getting closer to realistic.

    But a couple of other things to thing about - equipment repairs and maintenance are often budget busters. ONE back tire for our tractor is $700. I would budget for expenses of that type and hold the money in a separate account. Also, your figures are based on the barn and the trainer at full capacity, and everyone paying their bills on time. Run the numbers again with 8 paying boarders, and again with 6. Yes, your hay, feed and bedding costs will go down, but all your other overhead remains the same. The worst situation is the no pay or slow pay boarder - you're still feeding the horse. In a 10 - 12 horse operation, once no pay boarder can easily put you in the red.
    bsms likes this.
        03-17-2013, 01:44 PM
    Originally Posted by Erichy    
    The other thing is we have no way to research the owners ledger because they have it as a hobby and not a business, they just like having horses around.
    Interpret this to mean it loses $$$s. Loving horses aside, if you're making $$ you need to maintain a good ledger for the tax man.

    Does this sound like a another naive guy trying to buy a horse barn or am I at least in the ballpark?
    I think you're in the ballpark. Rent a copy of "The Money Pit" (Tom Hanks/Shelley Long), make a bowl of popcorn, and enjoy.
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        03-17-2013, 03:42 PM
    The money pit is probably right. The owners are very rich so they never wanted it to be a business. They don't care if it's empty or full even though there is a line of people wanting to board. They only want the nicest people in there. Pretty funny when someone asks because they ask everybody in the barn if they want them there and if anyone says they don't they aren't. Wish I was that rich!
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