Look Before You Leap: The Realities of Equestrian Operations
By Michael Donovan

Winston Churchill said, “There is something about the outside of a horse that is good for the inside of a man.” Those words speak to the essence of why growing numbers of people are getting involved in equestrian sports each year. This has led many equestrian enthusiasts to consider bringing their horses home and starting their own equestrian boarding and training operations. In both of these situations, it is extremely important to understand the ramifications of the commitment you are making before you make it.

Realizing either of these opportunities is a dream for many equestrians. Connected to these dreams are powerful emotions – which any horse lover appreciates only too well. As hard as it may sound, your happiness, sanity and very livelihood may depend on your ability to evaluate these dreams without emotion – in the cold, hard light of reality.

Horses and barns require a lot of hands-on attention that equate to a lot of time, money or both. Labor is the largest single consideration in barn operations. Depending on your situation, this consideration may involve:

• Having the time to accomplish the tasks needing to be done;
• Having the right people (with the skills, availability or temperament) to perform the tasks;
• Having the personal resources or facility budget to pay for the staff.

While there are many ways to run a barn, we strongly support sustainable operational procedures that:

• Are environmentally sustainable – giving horses enough space and turn-out time for exercise, their digestive process and mental health, and featuring pasture areas that do not become degraded, proper management of manure and efficient use of water;
• Provide for optimum equine health and well-being – ensuring that the stalls are large, safely constructed and tended several times per day, fresh water is always available, barns are clean and well-ventilated, and tack is properly fitted for each horse;
• Demonstrate respect and consideration for staff – wages and benefit packages promote staff satisfaction, schedules and working conditions reduce risk and create a desirable workplace environment (all of which support staff retention – a major cost savings);
• Provide your clients with a safe and enjoyable environment where they can learn, practice and improve their horsemanship and riding skills.

Let’s assume everyone starts out with the desire to operate with these procedures– because a facility ultimately won’t be successful if they don't. The hard truth is that the vast majority of independent equestrian operations lose money. This loss is manifested in a variety of ways:

• Owner/operators work far longer hours than what their compensation intended – their actual hourly pay rates drop to absurdly low rates;
• Maintenance for the facilities is “deferred” – meaning maintenance and repairs are not addressed or receive the “duct tape and bailing wire” approach;
• Barn operational expenses are paid with funds not generated by the barn (or not paid at all) and hay purchased for personal horses is consumed by the lesson herd; the barn’s insurance (structural) is covered by the homeowner’s insurance policy (often there is no liability or equine-specific coverage); real estate taxes that also include the facility are paid from the “home” checking account;
• The four sustainable operational procedures listed above are not met.

The chart below shows a 30-stall barn with three configurations of lesson and boarder horses. The financial calculations are based on a mid-market operation with reasonable projections for labor, consumables and general operating costs. Baseline fees for services are also presented. For each “horse” configuration, the chart also presents the boarding and lesson fees necessary to achieve “break-even” operations. For example, to cover its actual operational costs (including labor, consumables, insurance, etc.) the “24 Lesson – 6 Boarder” horse configuration would have to charge fees 32% above the baseline amounts. The “6 Lesson – 24 Boarder” configuration would require fees 140% above baseline (more than double) to break even. It should be pretty obvious that a school horse has greater revenue-generation capacity than a boarded horse (although it requires a larger capital investment). Perhaps less obviously, a smaller gap between baseline and “break-even” fees is obtained by maximizing the number of private lessons you offer (assuming you have the instructor availability and riding venue capacity).

Note: Lessons ratio is 50% private/50% group, except as noted.

While every barn has its specific circumstances, this exercise is intended to illustrate that most barns will be challenged by market conditions to charge fees high enough, simply to meet operational costs. There are other costs that often exist that must be considered to evaluate the total financial sustainability of equestrian operations including:

• Capital replacement funding – new roof for the indoor, new tractor, etc.;
• Lease payments, mortgage payments or other debt service for the land and facilities;
• Real estate taxes.

When all obligations are considered, bringing your horses home and starting an equestrian business are expensive propositions where it is difficult, if not impossible, to generate net revenue in the long term. Does this mean you should give up your dream? No, simply understand the cost of your lifestyle decisions. For those who have longed to operate a boarding and training barn, you must manage your risk. There are plenty of high net-worth individuals willing to subsidize an equestrian operation. A growing trend in the industry is to create an equestrian facility within a larger subsidized framework. Communities that feature an equestrian amenity operated by the Home Owners Association or through a membership-based club are financially sustainable. Resort-based facilities (where some residential component exists) also present excellent opportunities. Equestrian participation is growing. As more equestrian professionals approach their passion with a cool “business” head, we will see the quality of experience improve for everyone involved.

If you have any questions or would like to learn more about equestrian operations, Michael Donovan will be giving a presentation entitled "Reality Check - The Economics of Equestrian Operations" during the University of Maryland Horse Conference at Chesapeake College, on November 8th at 10:00am. Click here for more information on the conference.

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My Top 10 Reasons For Why I Love Horses
By Michele Schwartz

1. Watching their freedom as they glide across the ground.
2. The sweet smell of hay, leather and horse flesh is wonderful aroma therapy.
3. Understanding that this creature who outweighs me by 10 times will willingly follow with only a gentle cue from a lead rope.
4. Having a really great ride and the deep sense of satisfaction that I was “one” with another creature.
5. Watching gifted horsemen and women work with horses is truly poetry in motion.
6. Listening to the gentle munching sound of a horse contentedly enjoying his hay.
7. Seeing the enjoyment brought to the horse’s face when you groom his favorite itchy spot.
8. Watching a child ride for the first time and the infectious smile that follows.
9. When you tell a horse your secrets you know he will never tell another person.
10. Being with a horse causes all the other problems in the world to melt away.

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Keeping Riding Exciting!
By Lindsey McDaniel

One of the best ways to keep your horse entertained, happy and fit is to mix up your riding routines. Just like humans, horses can get bored doing the same workout on a daily basis. I recently became bored with my daily riding routine, and I think my horse was too, so my barn buddy and I began to think about new riding ideas.

On a daily basis, both of us were focusing on riding our horses in the outdoor ring. While we worked on a variety of different workouts in the arena, using the same space seemed to get old. One of the first changes we decided to make to our routine was riding in the field in front of the barn. The field, which has varying topography, was a big challenge for both of our horses when we first began riding there. Both of the horses had to really start engaging their hind ends, as going up and down the hills required them to carry themselves. Additionally, the field routine helped build strength in our horses' hind ends and was a great endurance exercise.

The next riding activity that my barn friend and I decided to embark on was trail riding. My horse - which was originally just a trail horse - was used to trail rides, but my friend’s horse - a mere four-year-old - had yet to experience them. For my horse, the trail rides were a nice relaxing change in workout, but for my friend’s horse, the trail rides were a great learning experience. The four-year-old, Latte, began to adapt to the changing environments, the new sounds and change of pace that the trail rides provided, while my horse just took in the sights and sounds. Even though both horses benefited from the rides in different ways, the trail rides added another option to our list of riding routines.

While our riding routine list consisted of arena work, field work and trail rides, it just didn’t seem to be enough for my friend and me, so we decided to do some research into different riding activities. Both of us had an interest in cows, so we decided to look for any opportunities in that area. Through a local contact, we found out about a weekly Friday-night recreational team penning (see definition below) competition. Despite the fact that neither of our horses had any cow experience that we knew of, we decided to try it out. The event took place about an hour from our barn, so this gave us the opportunity to work on and refine our horses’ trailering skills. During our first visit to the farm where the event was held, we met some really nice team penning “experts”, who gave us some pointers and guidance about how the competition worked and how we should begin introducing our horses to this new concept. Through several visits to the farm, my friend and I have found out that team penning has become not only our favorite riding routine, but our horses' too (or so we think)!

Overall, riding should be exciting for both horse and rider. While routine is important, mixing up the riding workouts will leave you with a happy, healthy and fit horse!

TEAM PENNING (from Wikipedia):
Team penning is a western equestrian sport that evolved from the common ranch work of separating cattle into pens for branding, doctoring or transport.

Today, it is a fast-paced and exciting event that gives a team of three riders on horseback from 60 to 75 seconds (depending on the class or the sanctioning of the event) to separate three same-numbered cattle from a herd of 30 and put them into a 16' x 24' pen through a 10' opening, located at the opposite end of the arena.

The sport features 30 head of cattle, typically yearling beef cattle (mature cows or bulls are not allowed), with numbers affixed to their back, three each of each number 1 through 0. A run starts once the line judge has dropped his flag as the lead rider's horse crosses the foul line. At that time, the announcer gives out a randomly-drawn number (e.g. "your number is seven"). The riders then know that they must cut out the three head of cattle that are wearing the number "7" and push them to the opposite end of the arena, put them into the pen, then finally call for time.

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Operations & Management News

Alex Abella and Jennifer Donovan conducted a hospitality-style training seminar for the staff at the Bergen Equestrian Center on Friday, September 26th. Lessons learned from five-star hotels such as the Ritz and the Four Seasons will be applied to the equestrian customer-service model, bringing a professional hospitality-style presence to the Bergen Equestrian Centerfor the first time.

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In the News: Horsemen's Yankee Pedlar

Equestrian Services, LLC continues to make headlines and bylines. This past July, we were featured in the article "5 Secrets to Finding the Equestrian Community of Your Dreams" from Horsemen's Yankee Pedlar.

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Covered Arena at the O'Connor Signature Equestrian Community Nears Completion

(Lake City, FL, August 12, 2008) – Olympians Karen and David O’Connor bring a unique level of expertise to the first branded equestrian facility in the United States, The Oaks of Lake City. Their commitment to uphold high standards for the inaugural O’Connor Signature Equestrian Community has already resulted in a professionally-appointed luxury 33-stall barn, a 60-foot covered round pen, and now the community’s 122’ x 225’ covered riding arena is just days away from completion.

In close proximity to the O’Connor-designed Signature barn, the new covered arena is an open invitation to ride in comfort and safety during inclement or hot weather. Resident equestrians can school and train their horses on competition footing in the new indoor arena (adjacent to the outdoor riding arena), or they can opt to ride across miles of picturesque trails. They may even choose to jump the 11-acre cross-country course that the O’Connors personally designed.

Successful signature golf-course communities preceded the concept of establishing an equestrian facility, where people could live near their horses and also have a country-club-style training facility at their disposal. Concierge-style equestrian service for boarders and estate owners has never before been offered at this level.

Developer Bradley Dicks decided that he would be the first to build an equestrian country-club community in Lake City, under the direction of top professionals. Equestrian Services, LLC of Charlottesville, Virginia partnered with the O’Connors to bring the Signature experience to community living. As a result of the O’Connors' input, design, dedication and professional hospitality-style management, Dicks was able to develop a "heaven on Earth" for homeowners who crave the equestrian lifestyle.

The grand-opening ceremony for The Oaks of Lake City is scheduled to take place on October 11th, 2008. It will be a festive occasion with demonstrations by some of the top professionals in the equine business. Olympians David and Karen O’Connor will be present to celebrate the official opening of the first Signature Equestrian Community. Visitors for the Grand Opening event are expected from all around the world, and the surrounding community are also encouraged to attend and enjoy the food, festivities and a first-hand look at this unparalleled equestrian community. For more information, visit www.theoakslakecity.com.

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Grand Opening Gala at The Oaks

(Lake City, FL, September 23, 2008) – The Grand Opening of The Oaks of Lake City is scheduled for Saturday, October 11 at the community’s equestrian center. A day full of exciting events is planned to mark the official grand opening of the community. Olympic medalists Karen and David O’Connor will be on hand to sign autographs and greet visitors at the opening of the first branded equestrian facility in the United States.

There will be equestrian demonstrations by top professionals in a variety of disciplines, including Four-in Hand driving (with World Silver Medalist Chester Weber), World Champion reining (with Jon and Seth Ingram), jumping, dressage, Shetland Ponies, Gypsy Vanners and more. The day’s events will kick off at 11am with an equestrian drill team flag presentation. Enjoy live entertainment by Nashville’s Christina Wallace, as well as giveaways, raffles and refreshments from 11am until 4pm.

Attendees are invited to tour the inaugural O’Connor Signature Equestrian Community, which is home to a professionally-appointed 33-stall barn, a 60-foot covered round pen, an 11-acre cross-country jump course designed by the O’Connors, a 122’ x 225’ covered riding arena, 15 miles of groomed trails and 236 beautiful home sites.

Click to RSVP!

Fashioned after the concept of signature golf-course communities, The Oaks of Lake City was developed for homeowners seeking an active equestrian lifestyle. Developer Bradley Dicks developed the equestrian country-club community in Lake City with the specifications and advice of top professionals. Equestrian Services, LLC of Charlottesville, Virginia partnered with the O’Connors to bring the O’Connor Signature brand concept to the project. As a result of their input, design and dedication, Dicks was able to develop a "heaven on Earth" for homeowners who crave the equestrian lifestyle.

The grand opening ceremony for The Oaks of Lake City is scheduled to take place on October 11th. Visitors for the event are expected from around the world - residents, equestrian enthusiasts, realtors and media personnel from surrounding communities are also invited to attend and enjoy the festivities, as well a first-hand look at this unparalleled equestrian community. For more information or to RSVP, visit www.theoakslakecity.com.

RSVP TODAY!

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Submit a Question:
What are Professional Boundaries?

	Ask the Experts – Submit a Question! Kristi Seymour, General Manager Equestrian Professionals, Inc. Bergen Equestrian Center

The Trainer - Client Relationship: Ethics on Professional Boundaries

Equestrian trainers and instructors are in the helping profession. In any helping profession, the knowledgeable person who is being paid for his or her service is in the power position. In the equestrian industry, this relationship is oftentimes blurred and compounded by the trainer's intimate involvement with their client's emotions, hopes, dreams and desire to achieve a goal. Many times these relationships turn confusing because they turn into friendships. In this relationship, there is money paid from a client to a trainer or instructor for a service. As a result, the trainer-client relationship is an unequal power relationship. An equestrian trainer or instructor has the information and skill-set that the client wants and needs, and it is important for trainers to see this role differential and act accordingly.

Boundaries

Boundaries are themutually-understood, unspoken physical and emotional limits of the professional relationship between a professional and a client. When these limits are altered or blurred, the relationship becomes ambiguous. Unethical conduct and other unprofessional behaviors may occur. Professional boundaries are the "limits that protect the space between the professional’s power and the client’s vulnerability”.

What is a Fiduciary Relationship?

This is a special relationship in which one person accepts the trust and the confidence of another to act in the latter’s best interest. Parties are not on equal terms and the fiduciary act must be met with good faith and for the benefit of the dependent party. Whenever trust and confidence is placed in your hands as a professional, you must honor and respect that and have the utmost awareness of the power differential. You have created a fiduciary relationship.

Boundary Violations

A boundary violation may occur any time the professional relationship becomes blurred and the trainer puts his or her needs in front of what is best for their client. When a trainer uses his/her power over a client for a tangible or intangible benefit or gain, he or she is committing a boundary violation.

The trainer is in the position of power and knowledge. This makes the relationship quite uneven, and the trainer must always be in control of the emotional elements of the relationship.

A decision concerning a boundary violations can be evaluated based on the ethical premises of:

• Beneficence - the likelihood that it will do good;
• Non-malfeasance - the likelihood that it will not cause harm;
• Client autonomy - the likelihood that it will foster client independence;
• Fidelity - the degree to which it reflects what was promised and is true to the articulated goals of the professional service.

The professional relationship represents a fiduciary contract - that is, an agreement between non-equals in which one person has more power and therefore more responsibility. Thus, while both have duties and responsibilities, it is the trainer or instructor who has greater duties and responsibilities. The trainer is responsible for establishing the boundaries of the trainer-client relationship and is accountable for his/her own behavior, regardless of whether any harm was intended.

A very prevalent example in the equestrian industry that is quite "standard" is a trainer that sells horses to their clients and makes a sales commission off the sale of the horse. This is an example of a conflict of interest. What is to prevent the trainer from suggesting the client buy a very expensive horse, when they really only need an uncomplicated, less expensive horse? The higher the price tag, the more money the trainer makes. A great alternative is for the trainer to estimate how much of his or her time it will take to find a horse for a client, calculate the hours and multiply it by their hourly rate. It would be quite reasonable to charge a flat fee for locating a horse. So now the trainer is paid for their time, and they get the same fee if they sell a $5,000 horse to their client or a $50,000 horse. This has now removed the conflict of interest and removed the tendency to want to up-sell their client for monetary gain.

This issue is rampant within the equestrian industry. By identifying and addressing the issue, we strive to eliminate these scenarios through increased awareness, education and modeling.

At Equestrian Professionals, Inc., we teach professionalism and model high ethical standards as an example throughout our organization.

I am interested if anyone can identify other examples of unethical behavior in the equestrian industry. I'd love to hear from you.

Kristi Seymour
General Manager
Bergen Equestrian Center -
Managed by Equestrian Professionals, Inc.

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