Potential Business Advice please

Phoebe

Phoebe

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7 January 2006
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Staffordshire
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Hello,

There are 35 horses on our yard, bringing in around £3500 revenue per month. It is due (potentially - most likely!) to close in September and there is going to be a huge rush for non existent places.

The only option I can think of is whether to take the business as a whole and approach all local farmers/land owners to see if there is anyone who would consider taking it on. Potentially we could take the stables, internal barn stabling etc, and the school flooring, jumps etc... we would just need the building space and the planning that goes with it.

Is there a possibility of doing this do you think, or does anyone have any other ideas?

Thanks in advance
 
£3,500 sounds like a lot of money each month but what are the outgoings?

You have to consider everything from wages to feed, electricity, maintenance, rates, muck heap removal, vehicle for maintenance (tractor) wear and tear on anything provided, insurance, servicing of things like fire extinguishers, (most insurance companies want all electrics checked annually)
WOrk all that out and then see what profit there is at the end of the month.
 
Thank you. Currently it makes about £2K profit a month... this is based on current figures but i've not checked them so hearsay only... not to mention the hay etc that is bought from the owner. His lease runs out in September and it will be closed then by the new owners (to whom that money is chicken feed). I guess its whether a farmer would be prepared to put up with a yard for that much money per month...
 
Hi Phoebe,

£3,500/mth sounds like a lot but it'd be hard to make even a small not for profit business out of such a low turnover. What you have at the moment is probably someone who has a bigger business elsewhere which can support the yard when it needs help, even if its a handyman or ownership of the land, but take the profit when its an easy month.

I'd imagine renting a bit of land just to keep 20 horses on would cost you the majority of the £3500 a month.

I don't wish to be a downer on your dream but there are reasons why the current owner doesn't want to solve them and continue.
 
Yes, I agree. it is part of a larger business at the moment but the current lease owner cant renegotiate the lease as the new owners of the land want it for other purposes.
Its so sad... its a lovely yard.
 
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