Starting a livery yard

Hi Newbie84. Have read this thread with interest. I don't know anything about running a livery yard but all my instincts tell me that most careers with horses don't make you money. I am (embarrassingly enough to admit) an accountant and based on that, 2 points occur to me -

1. It might well be worth talking to your business bank manager, if you have one or can get one, and showing them your business plan. they will be used to reviewing and critiqueing business plans and can point out the possible pitfalls to you. Basically, if a bank is not prepared to lend you money, it is a good indication that you probably don't want to invest your own money.

2. Have you thought about the possible other things you might do with the land? (In boring accountancy we call this the 'opportunity cost'). This brings into account things like, what if you just made hay and sold it - how much profit would that bring? (and how many hours a day would you have to work?). If you look at these things you might find that using the land in some other way is more profitable, giving you options to spend the excess profit in some way that you will enjoy more than working with horses.

Whatever happens, I wish you the very best of luck.
 
I've been in the horse business for over 40 years and have run livery yards within that time: would never even contemplate doing so again because it is pure slavery and I have NEVER met anyone who has made anything approaching a decent living doing so.
 
Thanks for your response. You make some good points.

I dare say there are other options for the land, but my heart lies with a yard. We will get advice from a financial advisor, we're not getting a loan for the development but it would still be a good idea to speak to our bank manager as to what their opinion is on it.

Ugh, so much to think of... x
 
Well you asked for positive comments so here's my contribution.
My horse is on part livery - includes t/o and b/I, muck out, all food except supplements, halyage, shavings, holding for vet,farrier (and arranging this as well), grooming, picking out feet. Huge outdoor school, my mare is out in a fab field with a few others, others are in small paddocks, two per paddock. £90 a week. Opening 7am until 8pm mon to fri and til 6pm on weekends. They offer full, schooling and competition livery too. Lots of extras too - tack cleaning, transport, lessons.
I love my yard - it's absolutely fabulous, horses are always very well cared for and best of all I get complete peace of mind- if I can't make it up I know my horse is well looked after,really can't reccomend it enough. Staff do over and above what they are required and its the friendliest, most helpful yard I've ever been on :)
So good luck with your venture! Hope you make your customers as happy as my yard makes me:)
 
Newbie84 said:
Thanks for all your responses, I'm sorry If i have appeared to have not taken in all the replies and acted as though I have got it 'all sussed out'. When you have a dream it's hard to hear people raining on your parade so to speak. I understand why people are doing it, but I'm sure you can appreciate it is still hard to hear.

We will be going through the figures with are accountant/land agent and various others to see how the figures stack up.

Thanks again
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Oh don't worry about that, we all understand why you're trying to make the figures work :smile3:. As Martlin says, the only question mark I have about it all is that you think you'll have made back the amount of money you spend on building the yard within 3 years. That isn't going to happen on your figures, however if the 3 years is not significant then providing you have the capital upfront to build the yard then does it matter if it takes you 10 years to make back the initial investment? (Lol at using the word 'investment', more a £ pit)

You are sensible going to an accountant or bank business manager as they will work on your business plan and give you an opinion on what they see and they'll let you know if they think it's a viable business plan.

I hope I speak for everyone here in that we wish you the very best of luck :smile3:
 
Good luck OP. Like others have said, the only thing we are arguing about is whether you would pay off the capital investment in three years, and that's a 'no'. However, if you view the capital investment as increasing the value of your property (which it will) then really, is it that important to pay it off in such a short time? My livery yard is slave labour for me in the winter, but it really is a doddle in the summer (except for the dreaded weekly poo pick). It pays for the running of my car and trailer, and for both my horses as well as a small part of the mortgage. So good luck!
 
Newbie84 said:
Thanks for all your responses, I'm sorry If i have appeared to have not taken in all the replies and acted as though I have got it 'all sussed out'. When you have a dream it's hard to hear people raining on your parade so to speak. I understand why people are doing it, but I'm sure you can appreciate it is still hard to hear.

We will be going through the figures with are accountant/land agent and various others to see how the figures stack up.

Thanks again
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I have been in similar shoes! I set up a livery yard within an existing farming business which was wholly owned. I think some posters may not understand how costs such as paddock maintenance, hay & straw production costs are 'lost' within the overall farming business. Insurance for example will only be an extension for the livery facilities and custodial care liability on your exisiting business policy, i assume you may already have employers liablility.

My only concern in your calculations is the labour element. To do the basics for 16 horses to a high standard on a daily basis you will need 2 staff on every day, excluding any riding. I no longer run a livery business but have my horse on livery and do an office job its easier! The yard i am at have two full time, a part timer, and the owner (full time) and her husband (part-time) for 13 horses. They still need the odd flexible part-time helper for holidays and sickness too. They too offer breaking and schooling livery on top of standard full livery.

Aside from that have you considered applying for a DEFRA farm diversification grant towards the capital costs?

I hope you realise your dream, but do remember to take time to periodically sit back and reflect on what you have achieved, and pace yourself so you don't burn yourself out! it's easy to get carried away on the adrenalin on getting it all set up and running by a deadline.

Good Luck.
 
Compared to farming running a yard will be child's play BUT horsey folk need special handling, are you "horsey" yourselves, if not you might find it challenging to deal with their quirks.

If it hasn't paid for its self in 3/5/10 years, can you survive that financially?

If you are going for top end prices it needs to be top end facilities ie smart, clean and well run.
 
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